Latest [Jan 20, 2022] CAMS Exam with Accurate Certified Anti-Money Laundering Specialists PDF Questions
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The CAMS Certified Anti-Money Laundering Specialist certification path includes only one CAMS certification exam.
NEW QUESTION 159
Financial institutions (FIs) perform AML risk assessments to ensure:
- A. a record for regulators indicating an AML risk assessment was completed at least once.
- B. satisfaction of the board of directors' approved risk appetite.
- C. proper controls surrounding higher-risk products, services, customers, and geographic locations.
- D. internal audit assurance that all AML-related policy and procedures are board approved.
Answer: C
NEW QUESTION 160
The most important concerns imposed on foreign financial institutions maintaining correspondent accounts with U.S. banks under the USA PATRIOT Act are:
1. Cancellation of correspondent banking relationships.
2. Forfeiture of funds in a U.S. interbank account.
3. Prohibition of correspondent accounts for shell banks.
4. U.S. residents maintaining private banking accounts.
- A. 1, 2, and 4 only
- B. 1, 3, and 4 only
- C. 2, 3, and 4 only
- D. 1, 2, and 3 only
Answer: A
NEW QUESTION 161
A government has instituted a new anti-money laundering laws which require all financial institutions to obtain certain information from its customers.
Which step should an institution located in this jurisdiction take to ensure compliance?
- A. Change systems to ensure the required information is automatically obtained from all customers
- B. Change procedures to require that the necessary information is obtained
- C. Send a notice to customers asking them to provide the necessary information
- D. Change procedures and systems as necessary and provide employee training
Answer: C
NEW QUESTION 162
Which customer transaction with a securities dealer would indicate the highest supicion of money laundering?
- A. Frequent trades in unlisted securities throughour the day on a regular basis
- B. Recurring transfers of money into a brokerage account subsequently invested in shourt-term securties
- C. A high level of account activity with very low levels of securities transactions
- D. Investment iin securities with a significantly lower risk than the customer's expressed risktolerance
Answer: C
NEW QUESTION 163
A financial institution files a suspicious transaction report on a customer as the result of a high volume of large currency deposits to pay off a loan. A law enforcement officer calls the anti-money laundering officer to discuss the suspicious transaction report. Which of the following is the anti-money laundering officer legally permitted to do?
1. Discuss any aspects of the reported activity.
2. Provide copies of the customer's loan documents.
3. Explain the customer's loan payment history.
4. Send the deposit documents referenced in the suspicious transaction report.
- A. 2 and 3 only
- B. 2 and 4 only
- C. 1 and 2 only
- D. 1 and 4 only
Answer: A
NEW QUESTION 164
As a result of an audit, a policy exception was identified that had been approved by the compliance officer.
The auditor determined that the policy exception is a violation of a regulatory requirement.
What should the auditor do?
- A. Consult with legal counsel to determine if the approval of the policy exception was acceptable.
- B. Advise the compliance officer on how to appropriately respond to policy exceptions.
- C. Include the regulatory violation in the audit report and report it to the board of directors.
- D. Include the regulatory violation in the audit report and recommend the compliance officer be subject to disciplinary action by the board of directors.
Answer: C
NEW QUESTION 165
Which statement is true about when an institute becomes aware that a particular employee is under investigation by law enforcement as a result of a subpoena or warrant?
- A. If an independent investigation provides grounds to interview the employee, they can be interviewed and, if necessary, terminated buy not advised that they are under investigation
- B. The employee can and should be interviewed, as well as notified of the investigation to demonstrate the seriousness of the offence and to get the employee's full attention and cooperation
- C. The institute has a duty as an employer to inform the employee he or she is under investigation by law enforcement, buy must not inform them that a warrant or subpoena has been received
- D. Under no circumstances can the employee be interviewed by the institution without the consent of law enforcement for fear of tipping the employee off
Answer: A
NEW QUESTION 166
An anti-money laundering audit identifies a significant weakness in how transaction monitoring alerts are cleared. Audit sampling identified potentially suspicious activity that was cleared as not suspicious. Management accepts the audit finding and develops a remediation plan.
What is the role of the auditor during the correction phase?
- A. Directing the remediation of the deficiency in a timely manner
- B. Developing procedures to provide sufficient risk-based documentation for clearing alerts
- C. Providing training to the alert clearing department on the importance of effective alert clearing
- D. Validating the successful remediation of the issue once management indicates the issue is resolved
Answer: D
NEW QUESTION 167
What should an effective anti-money laundering training program include?
- A. Computer-based modules titles differently for each job description in the bank
- B. Lists of anti-money laundering regulations
- C. Random testing of employees to ensure proper understanding of policies
- D. Real-life money laundering examples
Answer: D
NEW QUESTION 168
What was the topic the Wolfsberg Group's first guidance addressed?
- A. AML training for financial institution staff
- B. Merchant acquiring activities
- C. Enhanced due diligence for high risk customers
- D. Private banking
Answer: D
NEW QUESTION 169
Which of the following is the most likely reason for the Financial Action Task Force to remove a jurisdiction from the Non-Cooperative Countries and Territories list?
- A. Entering into a mutual legal assistance treaty.
- B. Joining the Wolfsburg Group.
- C. Receiving a favorable mutual evaluation.
- D. Conducting successful annual self-assessments.
Answer: A
NEW QUESTION 170
Which statement about U.S. Specified Unlawful Activities (SUA) is true?
- A. In order to secure a conviction, the defendant must be proven to have known the precise natureof the source of funds
- B. At least one SUA must be proven in order to pursue a money laundering conviction
- C. SUAs are generally limited to a small sub-set of crimes
- D. SUAs are limited to crimes that occur within the borders of the U.S. and its territories andpossessions
Answer: A
NEW QUESTION 171
You are designing an AI solution that will provide feedback to teachers who train students over the Internet.
The students will be in classrooms located in remote areas. The solution will capture video and audio data of the students in the classrooms.
You need to recommend Azure Cognitive Services for the AI solution to meet the following requirements:
* Alert teachers if a student facial expression indicates the student is angry or scared.
* Identify each student in the classrooms for attendance purposes.
* Allow the teachers to log voice conversations as text.
Which Cognitive Services should you recommend?
- A. Face API and Text Analytics
- B. QnA Maker and Computer Vision
- C. Computer Vision and Text Analytics
- D. Speech to Text and Face API
Answer: D
Explanation:
Speech-to-text from Azure Speech Services, also known as speech-to-text, enables real-time transcription of audio streams into text that your applications, tools, or devices can consume, display, and take action on as command input.
Face detection: Detect one or more human faces in an image and get back face rectangles for where in the image the faces are, along with face attributes which contain machine learning-based predictions of facial features. The face attribute features available are: Age, Emotion, Gender, Pose, Smile, and Facial Hair along with 27 landmarks for each face in the image.
References:
https://docs.microsoft.com/en-us/azure/cognitive-services/speech-service/speech-to-text
https://azure.microsoft.com/en-us/services/cognitive-services/face/
NEW QUESTION 172
A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion.
What is a key risk indicator associated with terrorism financing?
- A. There is no risk relating of terrorism financing when the charity group is operating legitimately in that country
- B. The sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence
- C. A large sum sent by money order to a charity
- D. There is a link between the charity group and a known terrorist group
Answer: D
NEW QUESTION 173
Pursuant to the Third European Union Money Laundering Directive, how long after being out of prominent office should a person NOT be considered to be a Politically Exposed Person (PEP)?
- A. 3 years
- B. 1 year
- C. 2 years
- D. 4 years
Answer: B
NEW QUESTION 174
Which location provides a law enforcement investigator the best opportunity for a productive investigative interview of a suspect?
- A. The residence of the suspect
- B. The office or work location of the suspect
- C. An interview room in the offices of a law enforcement agency
- D. A neutral location such as a coffee shop or restaurant
Answer: C
NEW QUESTION 175
Which action should an FIU consider taking when it has information that might be useful to another FIU?
- A. Take no action until contacted by the other FIU
- B. Supply the information to the other FIU spontaneously as soon as the relevance of sharing theinformation is identified
- C. In accordance with Wolfsberg guidelines, submit the information to the other FIU in writtenform
- D. Request approval from the Egmont Group prior to sharing the information with the other FIU
Answer: B
NEW QUESTION 176
How should a financial institution deter money laundering through new accounts? Choose 3 answers
- A. Seek to determine the source of deposited funds
- B. Document the identity of the party opening the account
- C. Query owner's names against FATF database
- D. Determine the beneficial owner(s) of the account
Answer: A,B,D
NEW QUESTION 177
In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.
What is another name for these internal, non-client accounts?
- A. Pay through accounts
- B. Correspondent accounts
- C. Trust accounts
- D. Concentration accounts
Answer: D
Explanation:
Reference:http://www.wolfsberg-principles.com/privat-banking.html(1.2.2, 5th bullet)
NEW QUESTION 178
After review of the financial institution's enterprise-wide anti-money laundering risk assessment, the new compliance officer identifies several deficiencies that need attention.
Which deficiency could lead to the highest potential for unmitigated risk?
- A. The risk assessment is several years old and does not cover all current products and services.
- B. The risk assessment does not anticipate potential risks even though the financial institution has no immediate plans involving those risks.
- C. The risk assessment is managed by a different team from the previous assessment therefore disrupting continuity of institutional knowledge.
- D. The risk assessment is revisited too frequently thereby diverting critical resources from other compliance tasks.
Answer: A
Explanation:
Explanation
https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/17.%20Wolfsberg-Risk-Assessment-FAQ How often should an enterprise-wide risk assessment take place? Regardless of the frequency with which an enterprise-wide risk assessment is undertaken, FIs are usually *****required to report annually *****on the status of the money laundering risk environment. This can take the form of an Annual Report or other types of reports. FIs should review their methodology on a regular basis (most likely annually) to ensure that any changes in internal or external factors are incorporated appropriately in order to arrive at the most accurate picture of risk possible Changes will need to be assessed in terms of a FI's ability to compare results year on year, otherwise potentially significant changes in the results may not be justifiable, clearly explained or understood.
NEW QUESTION 179
An AML compliance officer receives notice of government update including the names of the latest
terrorists sanctioned by the United Nations Security Council. Which would be the most appropriate step to take?
- A. Update the monitoring software containing sanctioned persons
- B. Update training information to include the latest names
- C. Notify the Board of Directors
- D. Inform the customers that their funds will be frozen
Answer: A
NEW QUESTION 180
In 2004, Consolidated KYC Risk Management was issued by the Basel Committee on Banking Supervision (BCBS). What is a key message in this document?
- A. KYC Risk Management required a yearly consolidation effort
- B. Consolidated KYC risk management for a group is critical and trumps jurisdictional rules hat limitinformation sharing
- C. KYC Risk Management means as established decentralized process for promulgating policies andprocedures
- D. Policies and procedures should be designed not merely to comply strictly with all relevant lawsand regulations
Answer: B
NEW QUESTION 181
In general, what is an element that a financial institution or business does not have to specifically address in an anti-money laundering program?
- A. A designated compliance officer with day-to-day oversight over the AML program
- B. A system of internal policies, procedures and controls
- C. An ongoing employee training program
- D. A description of its OFAC program to address government watch list screening
Answer: D
NEW QUESTION 182
A private banker of a major international bank is onboarding a new private investment company. The banker has verified the identity of the two directors, a husband and wife, who are equal shareholders. The funds in the account will be provided solely by the wife.
The banker was later informed by the company that an additional director and shareholder will be added to the company although the new shareholder will not provide funds.
What is the next step for due diligence in respect to the additional director and shareholder according to the Wolfsberg Anti-Money Laundering Principles for Private Banking?
- A. Refuse to open the account as it is not usual for an individual to be a director and shareholder of a private investment company without providing funds.
- B. Verify the identity of this individual, including due diligence in respect of background and reputation, and undertake due diligence on her source of funds and wealth
- C. Seek to further understand the relationship between the shareholders and undertake due diligence on the source of funds and wealth for each of the shareholders
- D. Seek to further understand the relationship between the shareholders and verify the identity of the individual which may include due diligence in respect to her background and reputation
Answer: C
NEW QUESTION 183
What are two requirements for monitoring and reporting suspicious activity for correspondent banking according to the Wolfsberg Principles? (Choose two.)
- A. Investigate and report suspicious activity only for the correspondent bank's clients
- B. Utilize downstream correspondents to investigate and report suspicious activity
- C. Incorporate suspicious activity monitoring into periodic reviews
- D. Incorporate due diligence results such as customer risk ratings
Answer: B,D
NEW QUESTION 184
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