Acams Exam CAMS Topic 3 Question 98 Discussion

Actual exam question for Acams's CAMS exam

Question #: 98
Topic #: 3

[All CAMS Questions]

Which of the following statements is true regarding the 2012 Financial Action Task Force (FATF) 40 Recommendations and/or 11 Immediate Outcomes?

AThe cornerstone of the 40 Recommendations is the adoption of a risk-based approach by each jurisdiction.

BEach jurisdiction can reach out to the FATF for private access to the interpretive notes to the 40 Recommendations.

CThe 40 Recommendations have not been updated to reflect the impact of new technology.

DThe 11 Immediate Outcomes are recommendations specific to high-risk jurisdictions requiring enhanced monitoring.

Show Suggested Answer

Suggested Answer: A

The FATF 40 Recommendations provide a global AML/CFT framework, and the Immediate Outcomes assess effectiveness.

Option A (Correct): The risk-based approach (RBA) is the foundation of modern AML compliance and is mandated by FATF Recommendation 1.

Option B (Incorrect): Interpretive notes are public documents available to all jurisdictions, not private.

Option C (Incorrect): The 40 Recommendations are regularly updated, incorporating new technology (e.g., virtual assets in 2019).

Option D (Incorrect): The 11 Immediate Outcomes assess the effectiveness of AML systems globally, not just for high-risk countries.

by Latia at May 05, 2025, 05:28 AM

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Brandon

18 days ago

C has to be wrong. The FATF is constantly updating its recommendations to keep up with new financial technologies and emerging risks.

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Jenelle

19 days ago

B sounds like a trick question. I doubt the FATF gives private access to their interpretive notes - that would defeat the purpose of having a common global standard.

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Eun

27 days ago

I'm pretty sure the correct answer is A. The FATF 40 Recommendations are all about the risk-based approach, which is the cornerstone of the whole framework.

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