CAMS Online Practice Questions and Answers

When requested by law enforcement via legal process to provide records or documentation, what should the officers of financial institution do?

A. Provide all records and documents the officer believes would be pertinent to the law enforcement agent's investigation

B. Refuse to provide any records or documents until the agent narrows the scope of the request down to what he or she actually needs

C. Not act on the legal process until the bank officer has contact w4h the agent and learns what the agent is investigating

D. if there is no basis for contesting the request, provide what is requested

An anti-money laundering officer for a financial institution has been conducting a monthly self- assessment.

The officer reviews the accounts increase in compliance with a long standing know your Customer policy. The self-assessment for the latest month shows a significant increase in compliance deficiencies for the first time in more than a year.

What is the nest course of action for the anti- money laundering officer to take?

A. Inform the Board of Directors promptly of the Know Your Customer policy trend over the last six months.

B. Determine if there is a readily identifiable cause for the deficiencies

C. Implement a revision to the account-opening training program

D. Revise the policy to simplify Know Your Customer compliance before the report is issued

A compliance officer is looking to update an institution's private bank procedures. What should be included as recommended by the Wolfsberg AML Principles on Private Banking?

A. Approval of Politically Exposed Persons (PEPs) by at least one person other than the relationship manager

B. Dedicated automated AML monitoring of client activity

C. Review of client files annually if there are unusual transactions

D. The institution's senior management has primary responsibility for the relationship

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 procedures to require that the necessary information is obtained

B. Change procedures and systems as necessary and provide employee training

C. Send a notice to customers asking them to provide the necessary information

D. Change systems to ensure the required information is automatically obtained from all customers

Which two statements in the Wolfsberg Group's "Suppression of the Financing of Terrorism" define the role financial institutions should play in the fight against terrorism? (Choose two.)

A. Financial institutions need to assist competent authorities in fighting terrorist financing through prevention, detection and information sharing.

B. Financial institutions need to continuously analyze the types of activity related to terrorist financing and develop models that in the long term will drive down terrorism.

C. Financial institutions should have financial intelligence units dedicated to the investigation of activity that would lead to the detection of terrorist financing as a means to decrease global terrorism.

D. Financial institutions should apply extra due diligence whenever they see suspicious or irregular activities, especially when customers are engaged in sectors or activities that have been identified by competent authorities as being used for the financing of terrorism.

A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists' cells. Which action by the charity indicates possible terrorist financing?

A. The charity frequently withdraws cash from the bank

B. The charity has branch locations located in various countries

C. The charity receives cash donations primarily from European countries

D. The charity maintains a bank account for non-business-related expenses

An immigrant residing in the United States opens a bank account that includes a debit card. Several months later, the transactional monitoring system identifies small deposits into the account followed by corresponding ATM withdrawals from a country bordering a conflict zone.

How should the bank respond?

A. Block any further activity

B. File a suspicious transaction report

C. Initiate an investigation into the activity

D. Contact the customer if the transaction activity continues

In reviewing recent transaction activity, a compliance officer for a money transmitter notices that several customers are each remitting the same amount of money but much more frequently. How should the institution respond?

A. File a suspicious transaction report

B. Instruct the tellers not to process remittances for these customers in the future

C. Conduct further investigation to determine whether this is truly suspicious activity

D. Immediately contact the customers and ask them why they are remitting money more often

Which accurately describes the social and economic impacts of money laundering?

A. Money laundering impacts the financial sector, which is critical for economic growth.

B. Increased money laundering generally results in greater economic stability as profits are reinvested in the jurisdiction.

C. Foreign investors are often attracted to jurisdictions with significant money laundering activity as the same conditions favour legitimate economic activity.

D. Money launderers generally remit any tax revenue that would be due in the jurisdictions in which they operate via front businesses.

Which statements relate to the role of financial intelligence units (FIUs) in combatting financial crime on a national and international level? (Choose three.)

A. FIUs can only engage in cross-border collaboration where there exists a reasonable suspicion that is confirmed by a court-issued document.

B. FIUs have a broad range of financial information to assess suspicious activity alerts.

C. FIUs are legally empowered to use a wide range of investigative techniques, both in the public and in the private sector.

D. FIUs use a limited range of investigative techniques.

E. FIUs are able to cooperate both with foreign counterparts and national institutions.

F. FIUs can only command data and information requests from public sector entities.