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Acams CAMS Exam - Topic 3 Question 96 Discussion

Actual exam question for Acams's CAMS exam
Question #: 96
Topic #: 3
[All CAMS Questions]

A recruitment manager in the human resources department of a bank has shortlisted a candidate for the position of relationship manager in its private banking division.

The bank's compliance policy requires proper background checks to protect against fraud and money laundering risks.

Which resources would be most useful for identifying potential negative information regarding the shortlisted candidate? (Select Three.)

Show Suggested Answer Hide Answer
Suggested Answer: A, D, E

Financial institutions must conduct thorough background checks on employees in sensitive roles (e.g., private banking) to mitigate fraud, insider trading, and money laundering risks.

Option A (Correct): Past employment records help verify work history and identify any red flags related to prior financial misconduct.

Option D (Correct): Internet and media searches reveal any negative press, regulatory issues, or connections to illicit activity.

Option E (Correct): Criminal history searches help screen for prior convictions related to financial crimes.

Why Other Options Are Incorrect:

Option B (Incorrect): Personal references are less reliable and may not uncover objective risk factors.

Option C (Incorrect): A resume is self-reported and should be verified using independent sources.

Best Practices for Employee Background Screening:

Conduct enhanced due diligence for high-risk roles (e.g., private bankers, compliance officers).

Use reliable background screening tools and legal databases.

Verify employment history and check against regulatory blacklists.


FATF Recommendation 18 (Internal Controls & Employee Screening)

Wolfsberg Group Guidance on AML Employee Background Checks

6th EU AML Directive (6AMLD) on Employee Due Diligence

by Leonor at Mar 22, 2025, 09:03 PM

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Mary
3 months ago
Criminal history searches? Seems a bit extreme, right?
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Chantell
3 months ago
Internet searches are super important these days.
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Gerry
3 months ago
Definitely past employment records are a must!
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Carolynn
3 months ago
Gotta go with criminal history, can't take any chances!
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Felicitas
4 months ago
I think personal references can be biased.
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Thomasena
4 months ago
I think all three should be focused on factual data, so I’d lean towards past employment records, criminal history searches, and maybe internet searches.
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Chauncey
4 months ago
I feel like criminal history searches should be a must-have, but I’m torn about including personal resumes. They might not reveal much.
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Paola
4 months ago
I remember a practice question where we had to choose resources for background checks, and internet searches were highlighted as crucial.
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Blythe
4 months ago
I think past employment records are definitely important, but I'm not sure about the personal references. They might be biased.
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Anika
5 months ago
For this type of compliance-focused question, I'd select A, D, and E. Past employment records, public media searches, and criminal history checks will give me the best overall picture of the candidate's background and help identify any potential issues. Gotta cover all the bases on this one.
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Lashawn
5 months ago
I want to be really thorough here, so I'd go with A, D, and E. Past employment records and criminal history searches seem essential, and I'd also want to do a deep dive on any public information about the candidate just to be safe.
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Emile
5 months ago
Okay, let's think this through step-by-step. The key is to identify resources that can uncover negative information about the candidate to protect against fraud and money laundering risks. Past employment records, public media searches, and criminal history checks seem like the most comprehensive options.
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Keshia
5 months ago
Hmm, I'm not entirely sure how to approach this. I guess past employment records, public media searches, and criminal history checks would be the most useful, but I'm not confident I have the full picture here.
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Jaclyn
5 months ago
This seems like a straightforward compliance question. I'd focus on options A, D, and E to thoroughly vet the candidate's background and identify any potential red flags.
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Ryan
11 months ago
I believe internet and public media searches would be crucial in uncovering any potential red flags.
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Linn
11 months ago
I agree, personal references from close associates could also provide valuable insights.
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Charlie
11 months ago
Ooh, I heard a rumor that one of the candidates for this position used to be a professional magician. Maybe we should add 'check for any sleight of hand skills' to the list!
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Ivette
10 months ago
E) Criminal history searches.
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Annelle
10 months ago
D) Internet and public media searches.
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Samira
11 months ago
A) Past employment records.
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Verlene
11 months ago
Haha, personal references? Really? That's like asking the candidate's best friend to vouch for them. Talk about a waste of time. Give me those criminal history searches any day!
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Kristin
11 months ago
I'm surprised personal resume isn't one of the top picks. That's where you'll find all the key information about the candidate's background and qualifications. Gotta start there, right?
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Tish
10 months ago
C: Personal resume is definitely important, but it's also crucial to verify the information provided independently.
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Sharika
10 months ago
B: Personal references from close associates can provide insights into the candidate's character.
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Steffanie
11 months ago
A: Past employment records are important to verify the candidate's work history.
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Daniel
12 months ago
Definitely agree with Patrick. Personal references are great, but you need to dig deeper to really vet this candidate. Can't leave any stone unturned when it comes to fraud and money laundering risks.
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Patrick
12 months ago
Past employment records, criminal history searches, and internet/public media searches are definitely the way to go. You can't be too careful these days, you know?
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King
11 months ago
Internet and public media searches can provide additional insights into the candidate's background.
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Maybelle
11 months ago
Criminal history searches can reveal important information about the candidate.
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Pamella
11 months ago
Past employment records are crucial to check for any red flags.
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Kenda
12 months ago
I think past employment records would be useful for identifying negative information.
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