Acams Exam CAMS Topic 4 Question 89 Discussion

Actual exam question for Acams's CAMS exam

Question #: 89
Topic #: 4

[All CAMS Questions]

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

Limited Time Offer

25%

Off

Get Premium CAMS Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kimberlie

3 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!

upvoted 0 times

Avery

2 months ago

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

upvoted 0 times

...

Eden

2 months ago

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

upvoted 0 times

...

Quentin

2 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.

upvoted 0 times

...

Gladis

2 months ago

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

upvoted 0 times

...

Diego

2 months ago

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

upvoted 0 times

...

Howard

2 months ago

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

upvoted 0 times

...

Elenora

3 months 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.

upvoted 0 times

Lindy

2 months ago

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

upvoted 0 times

...

Ilona

3 months ago

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

upvoted 0 times

...

Olive

3 months ago

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

upvoted 0 times

...

Jame

3 months ago

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

upvoted 0 times

...

Karol

3 months 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.

upvoted 0 times

...

Brynn

4 months ago

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

upvoted 0 times

...

Evelynn

4 months ago

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

upvoted 0 times