New 2024 Realistic Free ACAMS CAMS Exam Dump Questions and Answer
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ACAMS CAMS (Certified Anti-Money Laundering Specialists) certification exam is a globally recognized qualification that demonstrates a deep understanding of anti-money laundering (AML) and counter-terrorist financing (CTF) regulations and procedures. Certified Anti-Money Laundering Specialists certification is essential for professionals working in the AML and financial crime prevention field to enhance their credibility and career prospects.
NEW QUESTION # 195
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. There is a link between the charity group and a known terrorist group
- D. A large sum sent by money order to a charity
Answer: C
Explanation:
A key risk indicator associated with terrorism financing is the link between the charity group and a known terrorist group. This indicates that the funds transferred to the charity group may be used to support the terrorist group's activities, such as recruitment, training, propaganda, or attacks. Charities are often vulnerable to abuse by terrorist financiers, as they may operate in high-risk areas, have access to large amounts of cash, and enjoy public trust and legitimacy. Therefore, financial institutions (FIs) should conduct due diligence on the charity group, its directors, its beneficiaries, and its sources and uses of funds, and monitor the transactions for any red flags, such as unusual patterns, amounts, or destinations. FIs should also comply with the relevant sanctions and regulatory requirements, and report any suspicious or unusual activity to the authorities.
References:
1: FATF Guidance on Private Sector Information Sharing1
2: Mitigating the risks of terrorist financing | Crowe LLP3
3: ACAMS Study Guide for the CAMS Certification Examination3
NEW QUESTION # 196
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's repeated trading in securities that are low priced and low volume counters.
- B. The customer receives many incoming wire transfers from related parties to the trading account.
- C. The customer accumulates securities of a low volume counter in small increments on a weekly basis.
- D. The customer engages in large trading in securities that are liquid or highly priced from the trading account.
Answer: C
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 # 197
In relationship to life insurance business, the third European Directive states that Member States may allow the identity verification of the beneficiary under the policy after the business relationship has been established, but before which events?
- A. At or before the time of payout or before the beneficiary intends to exercise rights vested under the policy
- B. At or before the policy is issued to the beneficiary by the insurance company
- C. At or before a premium payment has been accepted for the policy purchased
- D. At or before 30 days of the relationship being established under the policy
Answer: A
NEW QUESTION # 198
When should the anti-money laundering risk assessment be updated?
- A. After a merger or acquisition
- B. When the board of directors changes
- C. Every two years
- D. When instructed to by the Financial Action Task Force
Answer: A
Explanation:
Evaluating the risk scoring model and conducting the risk assessment itself may need to be performed annually, every eighteen to twenty-four months, before the launch of a new product, or when an acquisition of another financial institution occurs.
Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/17.%20Wolfsberg-Risk- Assessment-FAQs-2015.pdf (10)
NEW QUESTION # 199
The anti-money laundering compliance officer for a small money transmitter has several agent locations in the same geographic area in the United States. The customers are immigrants from Country A and the majority of the funds are remitted to Country A.
In a meeting with one of the agents, it is recently discovered that two new customers have been coming in three times a week and sending funds to the same recipient in Country B. Each cash transaction always totals exactly $8,000.
What should alert the agent to possible money laundering activity by the two customers?
- A. They remit funds to the same person
- B. They have been coming in three times a week
- C. It is unusual for customers to remit to Country B
- D. Each of their transactions is just below the cash reporting threshold
Answer: D
Explanation:
This involves breaking down large amounts of cash into smaller transactions that are below the reporting threshold of $10,000 in the United States, in order to avoid detection and reporting by the financial institution.
Structuring is a red flag for money laundering and should be reported to the authorities as a suspicious activity.
The other options are not necessarily indicative of money laundering, as they could have legitimate explanations. For example, the customers may have a family or business connection to the same recipient in Country B, or they may have a regular need to send money three times a week.
References:
ACAMS CAMS Certification Video Training Course, Chapter 2: Money Laundering Risks and Methods, Section 2.2: Common Money Laundering Techniques Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition), Question 91 CAMS Certification Package - 6th Edition, Study Guide, Chapter 2: Money Laundering Risks and Methods, Page 38
NEW QUESTION # 200
What are some red flags financial institutions should be aware of when trying to verify the identity of a customer? Choose 3 answers
- A. Customer not having a connected phone
- B. Customer having no permanent address
- C. Customer having unusual documents from a foreign country
- D. Customer being new to the community
Answer: B,C,D
NEW QUESTION # 201
The board of directors receives notice from the primary regulator of the bank that potentially suspicious activity has been identified and the bank president appears to be involved. The Board asks the compliance officer for advice.
Which action should the compliance officer take when informed?
- A. Insist on the president's immediate resignation
- B. Inform the president of the regulator's suspicions and ask for his advice
- C. Inform the bank's legal counsel and follow their instructions
- D. Destroy all records relating to the matter
Answer: C
NEW QUESTION # 202
Which three statements are true regarding the extraterritorial reach of laws and legislation of the U.S.?
- A. The defendant does not need to know the funds came from an illegal activity under state, federal or foreign law
- B. The extraterritorial reach covers all transactions throughout the global economy
- C. Economic and trade sanctions by OFAC may pose extraterritorial risks for financial institutions and businesses outside the U.S.
- D. The criminal anti-money laundering law can apply to transactions that occur partially overseas
Answer: A,C,D
Explanation:
Explanation/Reference:
NEW QUESTION # 203
A bank maintains a relationship with a customer who owns a small bakery business.
Which customer action indicates potential money laundering?
- A. The customer purchased property insurance that is twice the value of the business
- B. The customer continually makes regular cash deposits
- C. The customer has multiple bank accounts at several locations
- D. The customer recently wired a large amount to a foreign jurisdiction where family is located
Answer: C
NEW QUESTION # 204
In order to protect investigative materials from disclosure when conducting an internal Investigation of any employee of a financial institution, legal counsel of that financial should________?
- A. Refuse to provide any records or documents to law enforcement because the bank has client privilege with its bank customers
- B. Request formal company authorization to conduct the investigation. Such authorization should be granted, if possible, by the board of directors or audit committee
- C. Let the bank hire any and all contract investigators to conduct the internal investigation. That way Legal is not a party to the action and may remain independent
- D. Not mark files or documents with privileged and Confidential: Attorney-Client Privilege and/or Work- Product. Those marks will only encourage law enforcement or opposing attorneys to seize those files
Answer: B
NEW QUESTION # 205
You are designing an AI solution that will analyze millions of pictures by using Azure HDInsight Hadoop cluster.
You need to recommend a solution for storing the pictures. The solution must minimize costs.
Which storage solution should you recommend?
- A. Azure Table storage
- B. Azure File Storage
- C. an Azure Data Lake Storage Gen1
- D. Azure Blob storage
Answer: D
Explanation:
Data Lake will be a bit more expensive although they are in close range of each other. Blob storage has more options for pricing depending upon things like how frequently you need to access your data (cold vs hot storage).
References:
http://blog.pragmaticworks.com/azure-data-lake-vs-azure-blob-storage-in-data-warehousing
NEW QUESTION # 206
A bank receives a wire transfer that references the sale of equipment to a sanctioned company. The bank's operations team removes the sanctioned company reference and allows the wire transfer to process. This is a description of what type of activity?
- A. Wire stripping
- B. Cover payment misuse
- C. Layering
- D. U-turn payment
Answer: A
Explanation:
Wire stripping is the process of removing or altering the identifying information associated with a wire transfer to make it difficult to trace the origin or destination of the funds. This technique is commonly used in money laundering schemes to conceal the illicit source of funds and avoid detection by authorities or sanctions screening systems. In this case, the bank's operations team deliberately removed the reference to the sanctioned company from the wire transfer message, thus violating the FinCEN "Travel Rule" and facilitating the evasion of sanctions.
References:
Wire Stripping in Anti Money Laundering Parlance
Wire Transfer Red Flags: Understanding Money Laundering and Fraud Risks Wire Stripping
NEW QUESTION # 207
What should countries do to help prevent non-profit organizations from being abused for the financing of terrorism according to the Financial Action Task Force 40 Recommendations?
- A. Create laws that forbid non-profit organizations from completing cross-border transactions without first running them through known terrorist data bases
- B. Require all non-profit organizations to register with the country's financial intelligence unit
- C. Allow for freezing assets of non-profit organizations
- D. Ensure non-profit organizations cannot be used to conceal or obscure the diversion of funds intended for legitimate purposes to terrorists' organizations
Answer: D
NEW QUESTION # 208
A financial institution has expanded its scope of services so that it is attracting the business of politically exposed persons (PEPs) who had previously never been part of the customer base.
Which two courses of action should the compliance officer include in the institution's procedures for considering PEPs as customers? (Choose two.)
- A. Obtain appropriate senior management approval for establishing a business relationship with a PEP from a high risk country
- B. Conduct enhanced ongoing monitoring of the business relationship
- C. Expedite due diligence when a PEP is pre-approved by a member of senior management
- D. Take adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction
Answer: B,C
NEW QUESTION # 209
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are developing an application that uses an Azure Kubernetes Service (AKS) cluster.
You are troubleshooting a node issue.
You need to connect to an AKS node by using SSH.
Solution: You add an SSH key to the node, and then you create an SSH connection.
Does this meet the goal?
- A. Yes
- B. No
Answer: A
Explanation:
By default, SSH keys are generated when you create an AKS cluster. If you did not specify your own SSH keys when you created your AKS cluster, add your public SSH keys to the AKS nodes.
You also need to create an SSH connection to the AKS node.
References:
https://docs.microsoft.com/en-us/azure/aks/ssh
NEW QUESTION # 210
A compliance officer provides an overview of the bank's anti-money laundering program to a group of new tellers during employee orientation.
Which training element should be delivered to this audience?
- A. Results of recent risk assessments
- B. Large cash transaction reporting procedures
- C. Past check fraud losses incurred by the financial institution
- D. The financial institution's surprise cash audit policy
Answer: B
NEW QUESTION # 211
According to experts, what is the most effective way to prevent money laundering through financial institutions?
- A. Collecting information on beneficial owners and foreign customers
- B. Implementing a sound customer due diligence program
- C. Instituting a policy prohibiting the acceptance of funds intended for terrorist financing
- D. Ensuring that transaction monitoring systems can identify terrorist financing
Answer: B
NEW QUESTION # 212
Which statement about U.S. Specified Unlawful Activities (SUA) is true?
- A. SUAs are limited to crimes that occur within the borders of the U.S. and its territories and possessions
- B. In order to secure a conviction, the defendant must be proven to have known the precise nature of the source of funds
- C. SUAs are generally limited to a small sub-set of crimes
- D. At least one SUA must be proven in order to pursue a money laundering conviction
Answer: D
Explanation:
According to 18 U.S.C. § 1956, the money laundering statute, the property involved in a financial transaction must represent the proceeds of some form of unlawful activity, which is defined as a specified unlawful activity (SUA). SUAs include over 250 crimes in six categories, such as RICO predicate offenses, certain offenses against foreign nations, acts constituting a criminal enterprise under the Controlled Substances Act, and federal health care offenses. Therefore, in order to pursue a money laundering conviction, the government must prove that at least one SUA was committed and that the property involved in the transaction was derived from that SUA.
References:
18 U.S. Code § 1956 - Laundering of monetary instruments, (a)(1) and (7).
957. Money Laundering-18 U.S.C. §§ 1956 & 1957, first paragraph.
Specified Unlawful Activities (SUA), first paragraph.
NEW QUESTION # 213
Which of the following poses the greatest money laundering risk for a financial institution offering on-line services to customers?
- A. There is greater difficulty in matching the customer with the provided identification doc-umentation.
- B. Customers can directly access their accounts without being detected.
- C. Institutions offering on-line services have no possibility to properly verify the identity of their customers.
- D. There is no human scrutinizing the customer's transactions, thus increasing the potential for large transactions.
Answer: A
Explanation:
According to the Anti-Money Laundering Specialist (the 6th edition) study guide, one of the main challenges of providing on-line services to customers is the verification of their identity and the authentication of their transactions1. The lack of face-to-face contact and the use of electronic documents increase the risk of identity fraud, impersonation, and account takeover2. Therefore, financial institutions offering on-line services need to implement robust customer due diligence (CDD) measures, such as using multiple sources of information, verifying biometric data, and applying risk-based monitoring3.
References:
1: CAMS Study Guide, 6th Edition, Chapter 4, Section 4.1, page 103
2: CAMS Study Guide, 6th Edition, Chapter 4, Section 4.2, page 104
3: CAMS Study Guide, 6th Edition, Chapter 4, Section 4.3, page 105
NEW QUESTION # 214
A bank employee reviews wire transactions looking for indications of wire stripping.
Which two actions should the employee take to complete appropriate bank procedures? (Choose two.)
- A. Identify wire transaction activity to or from a financial institution located in a higher risk jurisdiction
- B. Identify large incoming wire transactions received on behalf of a foreign client with no explicit reason
- C. Compare the wire transaction as it enters and after it leaves the bank
- D. Check for suspicious phrases usually used to conceal originator or beneficiary identity
Answer: A,B
Explanation:
Explanation/Reference: https://www.lexology.com/library/detail.aspx?g=79732c5e-b4bf-456a-9604-712f44f5a930
NEW QUESTION # 215
Which situations would require a financial institution (FI) to update its ML/TF risk assessment? (Choose two.)
- A. When the AML compliance team hires new employees
- B. When new board members are elected
- C. When new products, services or customer types are introduced
- D. When opening a sales point in a new location in the same city
- E. When the institution faces a merger or acquisition
Answer: D,E
Explanation:
Reference: https://www.fatf-gafi.org/media/fatf/content/images/National_ML_TF_Risk_Assessment.pdf
NEW QUESTION # 216
A bank sells reloadable open-loop prepaid cards to both customers and non-customers.
What is a red flag associated with these cards that may indicate money laundering?
- A. A bank customer historically purchases several prepaid cards near year-end.
- B. A bank customer routinely purchases five prepaid cards in small even-dollar amounts on a monthly basis.
- C. A non-bank customer consistently uses the bank to obtain cash advances using a prepaid card.
- D. A non-bank customer regularly loads large amounts of cash onto several prepaid cards.
Answer: D
Explanation:
According to the CAMS Study Guide, page 191, "Reloadable open-loop prepaid cards are a high-risk product for money laundering because they can be used to store and move large amounts of funds anonymously. They can also be used to access cash at ATMs or through cash-back transactions at merchants." Therefore, option B is a red flag that may indicate money laundering, as a non-bank customer who regularly loads large amounts of cash onto several prepaid cards may be trying to avoid identification, verification, or transaction reporting requirements.
References:
CAMS Study Guide, page 1911
NEW QUESTION # 217
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