Acams CAMS Exam - Topic 4 Question 89 Discussion

Actual exam question for Acams's CAMS exam

Question #: 89
Topic #: 4

Which step should financial institutions take when complying with sanctions requirements?

AAdopt automatic screening systems to detect designated persons and entities.

BChange the risk profile to 'high-risk' if an existing customer becomes a sanctioned entity and continue monitoring further transactions.

CConduct enhanced due diligence (EDD) for prohibited entities on the sanctions list.

DFreeze the funds or assets of designated persons and entities once this decision is approved by the board.

Show Suggested Answer

Suggested Answer: A

by Jolanda at Oct 18, 2024, 09:48 AM

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Luisa

5 months ago

Totally agree with the need for EDD!

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Leonida

5 months ago

Wait, do they really freeze assets that quickly?

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Gail

5 months ago

Enhanced due diligence is crucial for compliance.

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Augustine

6 months ago

I think changing the risk profile is more effective.

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Arthur

6 months ago

Automatic screening systems are a must!

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Magdalene

6 months ago

Freezing funds seems like a last resort, but I feel like we talked about needing board approval first, which complicates things.

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Stanton

6 months ago

Enhanced due diligence sounds familiar, especially for entities on the sanctions list, but I can't recall if it was the primary requirement.

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Laquita

7 months ago

I think changing the risk profile to 'high-risk' is crucial if a customer becomes sanctioned, but I wonder if that alone is enough.

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Detra

7 months ago

I remember we discussed the importance of automatic screening systems in class, but I'm not entirely sure if that's the best first step.

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Alisha

7 months ago

I think Option C is the way to go. Conducting enhanced due diligence on prohibited entities is crucial for sanctions compliance.

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Juliann

7 months ago

Option A seems like a good starting point - using automated screening to detect designated persons and entities. That would be an important first step.

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Denny

7 months ago

Hmm, I'm a bit unsure about this one. The options seem to cover different aspects of sanctions compliance, but I'll need to think through the best overall approach.

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Adelaide

7 months ago

This looks like a straightforward compliance question. I'll carefully read through the options and think about the key steps financial institutions should take.

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Kimberlie

12 months ago

I'm not sure if I should go with Option A or Option D. Maybe I should just ask the teller at the bank - they seem to have all the answers!

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Avery

10 months ago

Gladis: I'll go with Option A then. Thanks for the advice!

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Eden

11 months ago

You could always ask the teller at the bank for their advice. They might have more insight on which option to choose.

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Quentin

11 months ago

I would go with Option D. Freezing funds or assets of designated persons and entities is a crucial step in complying with sanctions requirements.

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Gladis

11 months ago

User 2: I agree with you. It's important for financial institutions to have efficient screening processes in place.

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Diego

11 months ago

I think Option A is the best choice. Automatic screening systems can help catch any designated persons or entities.

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Howard

11 months ago

User 1: I think Option A is the best choice. Automatic screening systems can help detect designated persons and entities quickly.

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Elenora

1 year ago

Ah, the age-old dilemma: do we freeze the assets or just change the risk profile? I'd say Option D is the safest bet, but Option C could be a good backup plan if you're feeling adventurous.

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Lindy

11 months ago

C) Change the risk profile to 'high-risk' if an existing customer becomes a sanctioned entity and continue monitoring further transactions.

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Ilona

11 months ago

B) Conduct enhanced due diligence for prohibited entities on the sanctions list.

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Olive

12 months ago

A) Adopt automatic screening systems to detect designated persons and entities.

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Jame

1 year ago

Option B is the way to go. Enhanced due diligence is crucial to ensure you're not doing business with any prohibited entities.

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Karol

1 year ago

I'd go with Option D. Freezing the funds or assets is the most direct way to comply with sanctions, and it's the best way to avoid any legal issues.

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Brynn

1 year ago

I believe conducting enhanced due diligence is also crucial to comply with sanctions requirements.

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Evelynn

1 year ago

Option A seems like the practical choice - automating the screening process can help financial institutions stay on top of sanctions requirements efficiently.

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