Instant Download ACAMS CAMS Free Updated Test Dumps [Q183-Q207]

Instant Download ACAMS: CAMS Free Updated Test Dumps

Valid CAMS FREE EXAM DUMPS QUESTIONS & ANSWERS

Who should take the CAMS exam

The CAMS certification is an internationally-recognized credential that identifies persons who earn it as possessing specialized AML knowledge. AML professionals who earn the CAMS designation position themselves to be leaders in the business and to expertise professional growth. If a candidate wants significant improvement in career growth needs enhanced knowledge, skills, and talents. The CAMS certification provides proof of this advanced knowledge and skill. If a person fulfills the following eligibility requirements of the CAMS exam then he should take this exam.

• Submit supporting documents.
• Provide three professional references.
• Document a minimum of 40 qualifying credits based on education, other professional certification and professional expertise in the field.

 

NEW QUESTION # 183
Why do government entities around the world believe that a risk-based approach to AML/CFT compliance is a preferable prescriptive measure?

• A. It allows institutions to focus their attention on only high risk customers
• B. It is easier for examiners to make subjective criticisms
• C. It allows the creation of hard and fast rules that must be followed
• D. It is more flexible, effective and proportionate

Answer: D

NEW QUESTION # 184
Which method to launder money through deposit-taking institutions is closely associated with international trade?

• A. Structuring cash deposits withdrawals
• B. Investing in legitimate business with illicit funds
• C. Forming a shell company
• D. Using Black Market Peso Exchange

Answer: D

Explanation:
Explanation/Reference: http://fraudaid.com/Dictionary-of-Financial-Scam-Terms/black_market_peso_exchange.htm

NEW QUESTION # 185
How can a financial institution verify the nature and purpose of a business and its legitimacy?

• A. By undertaking a company search or other commercial inquires to see that the institution has not been, or is not in the process of being dissolved of terminated
• B. By using an independent information verification process, such as by accessing public and private databases
• C. By reviewing the company's website
• D. By reviewing a copy of the corporation's latest audited reports and accounts

Answer: B

Explanation:
A financial institution can verify the nature and purpose of a business and its legitimacy by using an independent information verification process, such as by accessing public and private databases. This method can help the financial institution to check the names of businesses against anti-money laundering (AML) watchlists, parse and analyze ownership information to determine beneficial ownership structure, and run the beneficial owners themselves through identity verification and AML watchlist checks1. This can also help the financial institution to comply with the regulatory requirements for customer due diligence (CDD), which include obtaining and analyzing sufficient customer information to understand the nature and purpose of customer relationships for the purpose of developing a customer risk profile2. Other methods, such as reviewing a copy of the corporation's latest audited reports and accounts, undertaking a company search or other commercial inquiries, or reviewing the company's website, may not provide sufficient or reliable information to verify the nature and purpose of a business and its legitimacy.
References:
Customer due diligence for banks by the Basel Committee on Banking Supervision, October 2001.
How to Verify Legitimate Businesses and Merchants by Trulioo, March 2021.

NEW QUESTION # 186
To ensure compliance with economic sanctions established by governmental authorities in the jurisdictions where it operates, a financial institution requires that all new and existing customers be screened at onboarding and quarterly thereafter.
Is this step sufficient to ensure compliance?

• A. No, it is necessary to screen and perform enhanced due diligence on new relationships
• B. Yes, screening all existing customer relationships ensures the institutions is not dealing with a sanctioned individual or entity
• C. No, screening should occur promptly after list updates
• D. Yes, this is recommended by the international guidance

Answer: C

Explanation:
Screening customers at onboarding and quarterly thereafter is not sufficient to ensure compliance with economic sanctions, as sanctions lists may change frequently and the financial institution may not be aware of the latest updates. Screening should occur promptly after list updates to ensure that the financial institution is not dealing with a sanctioned individual or entity, or facilitating a prohibited transaction. This is recommended by the international guidance from the Financial Action Task Force (FATF) and the Wolfsberg Group12.
Screening and performing enhanced due diligence on new relationships is also important, but not the only step to ensure compliance.
References:
* CAMS Certification Package - 6th Edition | ACAMS, Chapter 3: Sanctions, page 86
* The Wolfsberg Group Correspondent Banking Due Diligence Questionnaire 2014, Section 5: Sanctions Policy, page 12
* ACAMS CAMS Certification Video Training Course - Exam-Labs, Video 3.1: Sanctions
* Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition), Question 109 The European Union Fourth Anti-Money Laundering Directive (4th AMLD) is a legal framework that aims to prevent the use of the Union's financial system for the purposes of money laundering and terrorist financing.
One of the provisions of the 4th AMLD is to lower the currency threshold for cash payments from €15,000 to
€10,000. This means that any person who makes or receives cash payments of €10,000 or more, whether in a single transaction or in several linked transactions, is subject to customer due diligence and record-keeping obligations. The 4th AMLD also extends its applicability to providers of gambling services, which are now listed as 'obliged entities'.
References:
* Directive - 2015/849 - EN - Fourth Anti-Money Laundering Directive - EUR-Lex, Article 11 and Recital 23.
* EUR-Lex - 02015L0849-20210630 - EN - EUR-Lex, Article 11 and Recital 23.
* Key elements of the 4th EU Anti-Money Laundering Directive, Section: Cash payments.
* Anti-money laundering and countering the financing of terrorism legislative package, Section: New EU AML/CFT Regulation.

NEW QUESTION # 187
In which type of banking transaction is price manipulation, as a form of money laundering, a common practice?

• A. Redeeming an annuity
• B. Subscribing to a cash management account
• C. Issuing a letter of credit
• D. Sending a wire transfer

Answer: C

NEW QUESTION # 188
How should a compliance program respond to an AML audit finding?

• A. By nominating an independent party to implement the corrective action
• B. By closing the accounts that were subject to findings
• C. By giving recommendations for each finding as part of an audit report
• D. By using the findings to identify and assess their money laundering risk

Answer: D

Explanation:
An AML audit is a process of evaluating an organization's compliance with AML regulations and best practices. The audit report should provide feedback on the strengths and weaknesses of the organization's AML program and identify any gaps or deficiencies that need to be addressed. The compliance program should use the audit findings as an opportunity to improve its AML risk management and internal controls, and to implement corrective actions as needed. The audit findings should not be ignored or dismissed, but rather used as a tool to enhance the organization's AML compliance performance and effectiveness.
References:
1: This web page explains what an AML compliance program is, why it is important, and what are the key components of an effective program. It also states that an AML compliance program should involve a regular review of the internal controls and systems used to detect and report financial crime, and measure their effectiveness in meeting compliance standards.
2: This blog post provides an overview of the importance and steps of an AML audit, and how to perform one effectively. It also suggests that an AML audit is a starting point to strengthen and improve the AML program, and that the insights from the audit should prompt action by the compliance team to address the deficiencies discovered.
3: This blog post discusses the best practices for AML audit compliance, and emphasizes the need for an ongoing testing process, including the audit, to keep the AML program current and effective. It also recommends effective communication among all employees who follow the program and procedures.

NEW QUESTION # 189
Which method to launder money through deposit-taking institutions is closely associated with international trade?

• A. Structuring cash deposits/withdrawals
• B. Forming a shell company
• C. Using Black Market Peso Exchange
• D. Investing in legitimate businesses with illicit funds

Answer: C

Explanation:
Explanation/Reference: http://fraudaid.com/Dictionary-of-Financial-Scam-Terms/black_market_peso_exchange.htm

NEW QUESTION # 190
A new customer has just been onboarded in a securities firm. After a few weeks, there are unusual trading patterns that are being flagged. Which pattern is most concerning to the compliance officer?

• A. The customer receives many incoming wire transfers from related parties to the trading account.
• B. The customer's repeated trading in securities that are low priced and low volume counters.
• C. The customer engages in large trading in securities that are liquid or highly priced from the trading account.
• D. The customer accumulates securities of a low volume counter in small increments on a weekly basis.

Answer: D

Explanation:
Explanation
The most concerning trading pattern for a compliance officer when a new customer has been onboarded in a securities firm is the customer accumulating securities of a low volume counter in small increments on a weekly basis. This type of behavior could indicate that the customer is attempting to obscure their identity or the true purpose of their trading activity, which can be indicative of money laundering or other suspicious activity. (CAMS Manual, 6th Edition, Page 170).

NEW QUESTION # 191
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professions include

• A. hawala operators.
• B. real estate agents.
• C. commodities traders.
• D. money services businesses.

Answer: B

Explanation:
These designated nonfinancial businesses and professions (DNFBPs) include - casinos when customers engage in financial transactions equal to or above a designated threshold.......... - real estate agents when they are involved in transactions for clients concerning buying and selling properties; - dealers in precious metals and stones when they engage in any cash transaction with a customer at or above a designated threshold; - lawyers, notaries and independent legal professionals and accountants when they prepare or carry out transactions for clients concerning buying and selling real estate; .......; and - trust and company service providers when they prepare or carry out transactions for a client concerning certain activities ....

NEW QUESTION # 192
Which step should be taken to understand the types of financial institutions to whom the services are being offered when a correspondent bank permits "nested" relationships according to the Wolfsberg Group?

• A. Obtain independent audits or examination reports for "nested" relationships to determine risk levels
• B. Understand the type and volume of accounts serviced
• C. Review peer-group clients by risk category
• D. Evaluate the distribution of downstream correspondents and identify any direct or indirect issues

Answer: D

Explanation:
Explanation/Reference: http://www.qfcra.com/en-us/whatwedo/AntiMoneyLaundering/Documents/Guidance%20on%
20Correspondent%20Banking%20May%202018.pdf (7)

NEW QUESTION # 193
An example of an external factor that will affect an organization's AML risk is:

• A. political system changes in a specific jurisdiction.
• B. introduction of a new product which will be offered to a wide range of clients.
• C. introduction of mobile banking for all clients.
• D. acceptance of new customer types.

Answer: A

Explanation:
Political system changes can have an impact on an organization's AML risk as they can affect the legal and regulatory framework in which the organization operates. For example, changes to the laws or regulations related to AML, or changes in the way in which the government enforces AML regulations, can have an impact on the organization's AML risk by increasing or decreasing the likelihood of it being exposed to AML risk. In addition, changes in the political environment or political stability in a specific jurisdiction can also affect the organization's AML risk.

NEW QUESTION # 194
What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?

• A. Wiring illicit funds from an account at one bank to an account at another bank
• B. Using illicit funds that had previously been deposited to purchase a luxury vehicle
• C. Depositing illicit funds into an account set up for a front company
• D. Directing third parties to exchange illicit cash for negotiable instruments

Answer: B

Explanation:
Explanation/Reference: https://www.moneylaundering.ca/public/law/3_stages_ML.php

NEW QUESTION # 195
Which red flags should be considered prior to establishing a relationship with a third party? (Select Two.)

• A. The third party has a declaration of non-family or business ties with government officials.
• B. The third party has requested unusual payment or billing procedures.
• C. The third party has sufficient capability to provide the services or goods for which it is being engaged.
• D. The third party's amount to be paid for goods and services appears to be reasonable.
• E. The third party has a lack of anti-corruption compliance clauses in agreements.

Answer: B,E

Explanation:
Explanation
The red flags that should be considered prior to establishing a relationship with a third party are the lack of anti-corruption compliance clauses in agreements (A) and unusual payment or billing procedures requested by the third party (C). According to the Certified Anti-Money Laundering Specialist (CAMS) Sixth Edition manual, "red flags include, but are not limited to: [...] lack of anti-corruption compliance clauses in agreements (page 330) and unusual payment or billing procedures requested by the third party (page 331)."

NEW QUESTION # 196
An EU Trust and Company Service Provider (TCSP) analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?

• A. The payment of consultancy fees to unrelated companies and service providers established in a foreign jurisdiction.
• B. The payment of virtual offices services overseas.
• C. The payment of company secretarial retainer fees to a foreign company in a tax efficient jurisdiction.
• D. Inter-company loans from the holding company to the subsidiary company to finance the shipment of machinery.

Answer: A

Explanation:
According to the CAMS Study Guide, one of the methods to launder money using TCSPs is to create a complex web of transactions involving multiple entities and jurisdictions, often using shell companies and nominees. The payment of consultancy fees to unrelated companies and service providers established in a foreign jurisdiction could be a sign of such a scheme, as it could be used to disguise the origin and destination of illicit funds, or to evade taxes and regulations. Therefore, this transaction indicator warrants further escalation to the compliance officer.
References: CAMS Study Guide, 6th Edition, Chapter 2, page 69.

NEW QUESTION # 197
What are the rules imposed by the Office of Foreign Assets Control (OFAC) for legal entities and persons related to the US? (Select Two.)

• A. Any foreign corporation is also penalized if it conducts transactions with sanctioned countries under OFAC rules.
• B. Nationals of the US must comply with OFAC rules, regardless of where they are located in the world.
• C. The head office of a foreign legal entity which has a branch in the US does not need to comply with OFAC rules.
• D. A foreign individual visiting the US for a short vacation is obligated to follow OFAC rules.
• E. A subsidiary of a legal entity of the US, which is formally registered in a foreign country, is exempt from OFAC rules.

Answer: A,B

Explanation:
The rules imposed by the Office of Foreign Assets Control (OFAC) for legal entities and persons related to the US are:
Nationals of the US must comply with OFAC rules, regardless of where they are located in the world. This means that US citizens, permanent residents, and entities organized under US law are subject to OFAC sanctions and prohibitions, even if they operate or reside outside the US12.
Any foreign corporation is also penalized if it conducts transactions with sanctioned countries under OFAC rules. This means that non-US entities that engage in trade or financial dealings with OFAC-designated countries, entities, or individuals are liable to face civil or criminal penalties, as well as secondary sanctions that could restrict their access to the US market or financial system34.
The other options are not correct, because:
A subsidiary of a legal entity of the US, which is formally registered in a foreign country, is not exempt from OFAC rules. This means that foreign-incorporated entities that are owned or controlled by US persons or entities are also subject to OFAC sanctions and prohibitions, unless they are specifically authorized or licensed by OFAC12.
A foreign individual visiting the US for a short vacation is not obligated to follow OFAC rules. This means that non-US persons who are temporarily present in the US are not subject to OFAC sanctions and prohibitions, unless they are involved in transactions that have a US nexus or violate other US laws.
The head office of a foreign legal entity which has a branch in the US does not need to comply with OFAC rules. This means that non-US entities that have a presence or operation in the US are not subject to OFAC sanctions and prohibitions, unless they are involved in transactions that have a US nexus or violate other US laws.
References:
ACAMS CAMS Certification Video Training Course - Exam-Labs3
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)4 ACAMS Study Guide for the Certification Examination, 6th Edition, Chapter 7, page 147: https://www.acams.
org/wp-content/uploads/2019/08/ACAMS-Study-Guide-6th-Edition-Chapter-7.pdf ACAMS Study Guide for the Certification Examination, 6th Edition, Chapter 7, page 148: https://www.acams.
org/wp-content/uploads/2019/08/ACAMS-Study-Guide-6th-Edition-Chapter-7.pdf ACAMS Study Guide for the Certification Examination, 6th Edition, Chapter 7, page 149: https://www.acams.
org/wp-content/uploads/2019/08/ACAMS-Study-Guide-6th-Edition-Chapter-7.pdf

NEW QUESTION # 198
A Trust and Company Service Provider (TCSP) providing services should have policies and procedures in place to identify critical information of the:

• A. general manager.
• B. registered address.
• C. controller.
• D. signatory.

Answer: D

Explanation:
Reference:
https://www.fatf-gafi.org/media/fatf/documents/reports/RBA-Trust-Company-Service-Providers.pdf

NEW QUESTION # 199
A customer has borrowed the cash surrender value of their life insurance policies. Which requires a further investigation and filing of the suspicious activity report?

• A. The customer uses multiple currency equivalents from different sources to pay the monthly life insurance policy premiums.
• B. The customer has paid the monthly life insurance policy premiums with cash.
• C. The customer directs the payment of the money borrowed to an unrelated third party.
• D. The customer cancels the insurance contract without concern for the penalties after the money is borrowed.

Answer: C

Explanation:
The customer directing the payment of the money borrowed to an unrelated third party is a red flag for potential money laundering, as it could indicate layering or integration of illicit funds. The other options are not necessarily indicative of money laundering, although they could warrant further monitoring or due diligence depending on the customer profile and risk assessment.
References:
ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 3, page 97, section
"Red Flags for Life Insurance Policies".
ACAMS CAMS Certification Video Training Course, Module 3, Lesson 3.2, "Red Flags for Life Insurance Policies".

NEW QUESTION # 200
The compliance officer for a private bank has been tasked with reviewing the procedure for authorized signatories on customer accounts to ensure it is in line with relevant Wolfsberg Anti-Money Laundering Principles for Private Banking.
Which three statements from the procedure are in line with Wolfsberg? (Choose three.)

• A. Where due diligence has been satisfactorily completed on all authorized signers, the responsible private banker may reduce the due diligence performed on the account holder and/or beneficial owner.
• B. Where the Authorized Signatory is not a lawyer or accountant, due diligence as to the source of funds and wealth of the Authorized Signatory should be undertaken.
• C. The responsible private banker must obtain the necessary documentation establishing the authorized signer's authority to act on behalf of the account holder or beneficial owner (e.g. a Power of Attorney).
• D. The responsible private banker must establish the identity of a holder of general powers over an account (e.g. a signatory for the account) and, as appropriate, verify that identity.
• E. If an individual has signing authority over an account but does not act on a professional basis as a manager of funds, the responsible private banker must understand and document the relationship between that authorized signer, the account holder, and, if different, the beneficial owner of the account.

Answer: A,C,E

Explanation:
Reference:
https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/20.%20Wolfsberg-FAQs-on-Intermediarie

NEW QUESTION # 201
Which activities could be considered a potential spear phishing scam? (Select Three.)

• A. Payroll receives an external email from an employee looking to update their bank account information.
• B. A business sends its employees an email warning that email passwords must be changed to prevent cyber-fraud.
• C. A courier delivers a duplicate invoice to a business that contains updated payment details of an existing supplier.
• D. An employee receives an email that asks to download an attachment, but the attachment is a malware.
• E. An employee receives a phone call requesting that money be sent to assist someone in trouble.
• F. Members of a religious organization receive a donation request by email claiming to be from their leader.

Answer: A,C,D

Explanation:
The activities that could be considered a potential spear phishing scam are:
A courier delivers a duplicate invoice to a business that contains updated payment details of an existing supplier. This could be a way of diverting funds to a fraudulent account by impersonating a legitimate vendor and exploiting the trust relationship between the business and the supplier1.
Payroll receives an external email from an employee looking to update their bank account information. This could be a way of stealing money from the employee or the employer by pretending to be the employee and requesting a change in the payment method or destination2.
An employee receives an email that asks to download an attachment, but the attachment is a malware. This could be a way of infecting the employee's computer or network with malicious software that could compromise sensitive data, disrupt operations, or demand ransom3.
The other options are not necessarily spear phishing scams, although they may be other types of fraud or deception. For example:
An employee receives a phone call requesting that money be sent to assist someone in trouble. This could be a vishing scam, which is a form of voice phishing that uses phone calls to solicit personal or financial information or to request money transfers4.
A business sends its employees an email warning that email passwords must be changed to prevent cyber-fraud. This could be a legitimate security measure, or it could be a phishing scam, which is a form of email phishing that targets a broad audience and tries to trick them into revealing their credentials or clicking on malicious links.
Members of a religious organization receive a donation request by email claiming to be from their leader. This could be a genuine appeal, or it could be a social engineering scam, which is a form of manipulation that exploits the human factor and relies on the victim's emotions, trust, or sympathy.
References:
ACAMS CAMS Certification Video Training Course - Exam-Labs3
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)4 ACAMS Study Guide for the Certification Examination, 6th Edition, Chapter 3, page 53:
https://www.acams.org/wp-content/uploads/2019/08/ACAMS-Study-Guide-6th-Edition-Chapter-3.pdf ACAMS Study Guide for the Certification Examination, 6th Edition, Chapter 3, page 54:
https://www.acams.org/wp-content/uploads/2019/08/ACAMS-Study-Guide-6th-Edition-Chapter-3.pdf ACAMS Study Guide for the Certification Examination, 6th Edition, Chapter 3, page 55:
https://www.acams.org/wp-content/uploads/2019/08/ACAMS-Study-Guide-6th-Edition-Chapter-3.pdf ACAMS Study Guide for the Certification Examination, 6th Edition, Chapter 3, page 56:
https://www.acams.org/wp-content/uploads/2019/08/ACAMS-Study-Guide-6th-Edition-Chapter-3.pdf

NEW QUESTION # 202
According to experts, what is the most effective way to prevent money laundering through financial institutions?

• A. Implementing a sound customer due diligence program
• B. Instituting a policy prohibiting the acceptance of funds intended for terrorist financing
• C. Ensuring that transaction monitoring systems can identify terrorist financing
• D. Collecting information on beneficial owners and foreign customers

Answer: A

Explanation:
Explanation
"A sound Customer Due Diligence (CDD) program is one of the best ways to prevent money laundering and other financial crime."

NEW QUESTION # 203
Can trading in antiques be useful for money laundering?

• A. No, because antique sales and purchases are highly regulated worldwide.
• B. Yes, because cash is often physically hidden within the antiques themselves.
• C. Yes, because antiques can be of high value and often easily transported.
• D. No, because the antiques market is rather small and unusual transactions would draw attention.

Answer: C

NEW QUESTION # 204
According to experts, what is the most effective way to prevent money laundering through financial institutions?

• A. Implementing a sound customer due diligence program
• B. Instituting a policy prohibiting the acceptance of funds intended for terrorist financing
• C. Ensuring that transaction monitoring systems can identify terrorist financing
• D. Collecting information on beneficial owners and foreign customers

Answer: A

NEW QUESTION # 205
An organization's automated surveillance system identifies large fluctuations in customer activity. As a result of an audit, the compliance officer is informed that the system is not generating alerts when activity is consistently abnormal over a long period of time. Currently the organization is evaluating new alert scenarios in an attempt to address this problem.
Which type of scenario is helpful in mitigating this weakness?

• A. Mapping
• B. Income
• C. Peer
• D. Below-the-line

Answer: A

NEW QUESTION # 206
A SAR/STR should be filed when the accountable institution identifies that:

• A. an alert is generated by a transaction monitoring system.
• B. cash transactions have values which avoid reporting thresholds.
• C. a customer makes a cash deposit in round dollars.
• D. an employee is not clearing alerts in a timely manner.

Answer: A

NEW QUESTION # 207
......

The CAMS certification exam is designed to assess an individual's knowledge and understanding of AML laws, regulations, and best practices, as well as their ability to apply this knowledge in real-world scenarios. CAMS exam covers a wide range of topics such as money laundering typologies, risk assessment, customer due diligence, transaction monitoring, and sanctions compliance. Passing the CAMS exam demonstrates a professional's commitment to the AML field, and it is often a requirement for many AML-related job positions in financial institutions, law enforcement agencies, and regulatory bodies.

The Certified Anti-Money Laundering Specialists (CAMS) exam is one of the most recognized and respected certifications in the field of anti-money laundering (AML). The CAMS certification is designed to recognize individuals who have attained a high level of knowledge and expertise in AML, and who have demonstrated a commitment to the profession through continuing education and ongoing professional development. The CAMS exam covers a wide range of topics, including AML regulations, risk assessments, transaction monitoring, and sanctions screening.

 

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