Updated CAMS Dumps Questions – Get Yourself Pro At CAMS Exam

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

How should the bank respond?

2. A retail bank has just acquired a credit card business. The bank’s anti-money laundering policy requires thatnew employees are trained within 30 days of their hire date and refresher training is delivered to all employeeson an annual basis.

Is the bank’s existing anti-money laundering training adequate to be delivered to employee of the newlyacquired credit card business?

3. 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.)

4. Why are Money Services Business (MSBs) frequently accused of being high risk for money laundering?

5. Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which of the following reasons?

6. Which of the following is the best action to take regarding a particular account once suspicious activity is reported by the institution?

7. According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?

8. According to Basel Committee on Banking Supervision's Customer Due Diligence for Banks, which of the following should provide an evaluation of a bank's policies and procedures independent from its management?

9. A customer has held an account at a bank and has lived locally for over 25 years. Historically he has comeinto the bank monthly to deposit a $1,500 retirement check from the company where he worked. He is wellknown at the bank and often brings the staff cookies. Over the past four months, he has come into the bankevery Monday, Wednesday, and Thursday to make $3,000 cash deposits into his account. A review of hisaccount shows that an $8,500 check made out to cash clears his account each week. The bank has decidedto file a suspicious transaction report (STR).

What is the important fact to include in the STR?

10. Bank A is located in CountryA. A wire transfer from Bank B located in Country B is processes by Bank A, where the funds are being moved to a customer at Bank C located in CountryC. The wire transfer is deemed suspicious by Bank A.

Who should Bank A file a suspicious transaction report on?

11. Bank A is a non-United States (U.S.) bank that has $5 million in a correspondent account at a bank in New York City. The Worldwide Terrorist Syndicate (WTS) has $1 million in itsaccount at a non-US branch of BankA. The U.S. government has initiated forfeiture action against the WTS.

Which potential action can the U.S. take under the USA PATRIOT ACT pursuant to the issuance seizure warrant?

12. A new AML Officer for a US-based money service business (MSB) is drafting procedures around types of activity that require further review.

Which should be included? (Choose two.)

13. A compliance officer is reviewing the activity of the wire transfer department for the previous month and identifies an unusual wire transfer from a customer’s account.

Which information should be included in the review of the customer’s activity?

14. Which element is generally required of all anti-money laundering programs?

15. An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Priorto starting the close out process, the institution receives a written request from a law enforcement agency tokeep the account open. The client is the subject of an ongoing investigation and law enforcement wants theinstitution to continue to monitor the account and report any suspicious activity.

What is primary consideration the institution should keep in mind when deciding whether to agree to thisrequest?

16. The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account.

Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)

17. A foreign politically exposed person (PEP) requests to add a beneficiary to a file insurance policy.

How should the request be processed to mitigate risk?

18. What are the European Union Directives on Money Laundering?

19. In which two ways do Financial Action Task Force-style regional bodies influence anti-money laundering and terrorist financing standards within their respective regions? (Choose two.)

20. A bank compliance officer has implemented enhanced monitoring rules that have identified some unusualactivity that may be indicative of human trafficking.

Which red flag should prompt additional transactional review?

21. 1.An organization uses an automated surveillance system that generates a very large volume of anti-money laundering alerts. The monthly volume of alerts has increased over the last year causing the compliance staff to fall significantly behind reviewing the alerts. As a result, the system settings are under review to determine if they are appropriate.

Which action should be included in the evaluation of system settings?

22. Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?

23. Which aspect of the USA PATRIOT Act impacts foreign financial institutions?

24. What is the intentional evasion of a reporting or recordkeeping requirement?

25. What is an aspect of the USA PATRIOT Act that has extraterritorial reach?

26. To what extent should senior management and the Board of Directors be involved in the filing of any STR?

27. The branch manager notices that a number of customers come in weekly and always use the same teller toprocess their deposits. The manager notices that the customers and the teller, who are from the same ethnicgroup, are speaking in a foreign language and every once in a while the customers from local ethnicrestaurants will bring the teller lunch. The commercial customers that visit the teller generally deposit the sameamount of cash each time they come in.

How should the branch manager respond to this activity?

28. A suspicious transaction report has been filed on an account owned by the wife of the bank’s ChiefExecutive Officer.

Which of the following is the most important consideration when deciding whether to recommend closing the account?

29. A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of thecustomer’s accounts, you notice that credit card receipts have increased with no .

The account officer discovers that the restaurant has installed a privately-owned automated teller machine(ATM) onsite and has begun construction on a patio dining area.

Which red flag should trigger additional investigation?

30. Send the deposit documents referenced in the suspicious transaction report.

31. What does the Financial Action Task Force 40 Recommendations address on transparency of beneficial ownership?

32. According to the Second European Union Money Laundering Directive, what may knowledge of criminal conduct be inferred from?

33. 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?

34. Upon filing a suspicious transaction report, which of th following elements should be the highest anti-money laundering priority in making the decision to keep the account open?

35. A new compliance officer is reviewing the bank’s anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, renamedthe internal records group, and streamlined cash handling procedures.

Which factor causes the compliance officer to update the bank’s risk assessment?

36. Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking? Choose 3 answers.

37. To guard against acquisition or control of a financial institution by money launderers or their associates, what should supervisory agencies require?

38. Which is a key role of FATF-Style Regional Bodies (FSRBs)?

39. A branch manager for a small community bank has a new customer who deposits for EUR 50,000 checks into one account. Shortly thereafter, the customer goes to another branch and asks to transfer all but EUR 1,500 to three accounts in different foreign jurisdictions.

Which suspicious activity should be the focus of the suspicious transaction report?

40. A bank has opened a new account for a well-known attorney to manage client funds. During the first six months, bank staff observe the account receives multiple deposits via wire transfer. They also observe that the attorney withdraws cash, makes payments to various people, and transfers funds to the law firm’s account online.

What is considered a red flag for potential money laundering in this situation?

41. A compliance officer is conducting a review of the automated transaction monitoring system.

What would be most likely to result in a change in the monitoring system parameters?

42. An anti-money laundering specialist has been asked to create internal anti-money laundering policies, procedures and controls for a recently chartered offshore financial institution.

Which three should be included? Choose 3 answers

43. What should senior management do in order to promote a culture of anti-money laundering compliance?

44. An AML training program should include which requirement?

45. Which scenario should be escalated as potentially suspicious activity?

46. When providing reporting of STRs to the board, which of the following should be provided?

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

48. A customer brings $15,000 worth of chips into a casino and plays various games. The customer redeems allthe remaining chips and requests a wire transfer of the proceeds to an unrelated third party.

What are two red flags that indicate money laundering? (Choose two.)

49. Which transaction should result in a SAR/STR filing?

50. Which response represents a high-level principle for FATF-Style Regional Bodies (FSRB)?

51. A bank’s anti-money laundering section receives an anonymous tip that a customer might be engaging inpossible money laundering.

Which two facts should be considered during the course of an investigation into this matter? (Choose two.)

52. During a law enforcement investigative interview regarding potential money laundering, the suspect startsmaking assertions and statements that the investigator believes are false.

How should the investigator respond?

53. Why do governments and multi-national bodies impose economic sanctions?

54. Findings from a regulatory examination report states that the job descriptions of personnel outside of thecompliance department do not include references to anti-money laundering responsibilities.

Which action should the firm take?

55. In general, what is an element that a financial institution or business does not have to specifically address in an anti-money laundering program?

56. One area of responsibility for the Board of Directors when implementing a successful AML program is to:

57. Which action does the Financial Action Task Force (FATF) recommend be taken against jurisdictions that

have strategic deficiencies?

58. Which practices are dealers in antiques, precious metals, precious stones, jewelry, and art advised to follow to reduce the element of money laundering risk? Choose 3 answers

59. An anti-money laundering specialist at a large institution is responsible for information senior management about the status of the anti-money laundering program across the organization.

Which report is the most useful?

60. What are four key elements that a KYC program should contain according to the Basel Committee requirements?

61. A recent anti-money laundering audit revealed several regulatory reporting violations and lapses with theorganization’s anti-money laundering policy. As a result, the compliance officer has created a follow-up matrixto document progress in correcting the identified deficiencies.

To whom should the compliance officer provide regular updates of corrective action to help ensure theappropriate oversight?

62. A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution forsuspicious activity on a client’s account. Subsequently, the agency requests further information.

Which supporting documentation might the law enforcement agency request from the institution to facilitate itsinvestigation?

63. Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)

64. When performing a risk assessment, which factors should be considered when identifying and measuring risk? (Choose two.)

65. Which three do the Office of Foreign Asset Control regulations cover? Choose 3 answers

66. The compliance officer for a private bank has been tasked with writing a policy on how the bank will deal withintermediaries.

Which two aspects should be included in the policy in respect of intermediaries to align it with the WolfsbergAnti-Money Laundering Principles for Private Banking? (Choose two.)

67. precious metal dealers.

68. A quarterly review is conducted on a retail customers account at a bank located in a jurisdiction with currency reporting thresholds. A number of large deposits of financial instruments drawn on other institutions in amounts under thresholds were noted. This activity did not fit the accounts historical profile. A suspicious transaction report will most likely be filed if what also occurred?

69. The compliance officer for a private bank has been tasked with reviewing the procedure forauthorized 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.)

70. An anti-money laundering specialist is concerned that several suspicious transaction reports will discuss potential illegal activity of bank employees.

In this situation, which of the following is the immediate concern for the institution?

71. Which requirement is included in the Fourth European Union Directive on money laundering?

72. A corporate services provider in a European Union (EU) country has a prospect from an African country whodeals in oil and gas. The prospect intends to develop an oil terminal in his home country with a $75 milliondollar loan secured by a third party, which is a trust formed in a Caribbean island with a holding companybased in a European secrecy haven. A young lady is presented as an ultimate beneficial owner who hasgained her wealth through a fitness studio in her home country.

What are two red flags that could indicate money laundering or financing terrorism? (Choose two.)

73. What is true regarding disclosure to a law enforcement agency by a financial institution of the supportingdocumentation for a suspicious transaction report?

74. Which statement about a multinational institution’s ability to fully investigate unusual activity in all its foreign operations is correct?

75. A customer comes into a financial institution and deposits a large amount of cash. He has never done that before. When asked about the deposit, he indicates he recently sold a used car and received cash.

He does not trust forms of payment and is wary of counterfeit money orders.

What should the bank do?

76. Which is a FATF characteristic used to assess a country's effectiveness of its AML regime?

77. The Wolfsberg Principles

78. A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is aproperty in Florida.

The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. TheLLC was established by a New York-based attorney.

The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthlypayment.

Which aspect indicates potential for money laundering?

79. Law enforcement submitted a request to a bank for information regarding one of its customers.

How should the bank respond according to Financial Action Task Force Guidance?

80. A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at £30million, in the outskirts of London as an investment property. The clients are not willing to have their namesprovided to the bank. The clients want to purchase to be made in the names of three private companies forprivacy reasons. The plan is to wire the funds into an account held in the name of another private company ata bank in London.

Which red flag should stop the agent from discussing this potential purchase further?

81. An anti-money laundering audit identifies a significant weakness in how transaction monitoring alerts arecleared. 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?

82. Which trading pattern may be indicative of money laundering in capital markets?

83. Who has the ultimate responsibility within a bank for ensuring that the bank has a comprehensive andeffective Bank Secrecy Act / anti-money laundering (BSA/AML) program and oversight framework that isreasonably designed to ensure compliance with applicable regulations?

84. Which of the following represents the first Financial Action Task Force initiative?

85. To ensure that an institution’s anti-money laundering program is current, which step should be taken?

86. With which person(s) should an anti-money laundering officer coordinate when implementing a new hire screening program?

87. The branch manager calls the compliance officer and informs her that a law enforcement officer has just leftthe branch and was asking a lot of QUESTION NO:s and left a business card.

What should the compliance officer do?

88. In establishing procedures for the review of suspicious transactions and filling of STRs, what thing should an institution focus on?

89. A benefit of using bearer shares in corporate formations is that bearer shares are:

90. An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal request with the customer. The account officer intends to discuss points related to the investigation during the meeting.

What should an anti-money laundering specialist recommend?

91. A customer comes into the bank and appears to be ill-at-ease waiting in the teller line. When the customer gets to the teller, he become exceedingly nervous and asks for a large cashier’s check to be cashed and disbursed to him in $100 bills.

What should the teller do after completing the transaction?

92. What kind of person should perform the independent testing of an institution’s anti-moneylaundering program?

93. What are two requirements of United States financial institutions when conducting business with aninternational institution as a result of the USA PATRIOT Act? (Choose two.)

94. Which method to launder money through deposit-taking institutions is closely associated with internationaltrade?

95. Which statements regarding the USA PATRIOT ACT best describe key aspects that have extraterritorial reach? (Choose three.)

96. A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.

During on-boarding, the client's wealth was estimated at $7 million. Shortly thereafter, the client's father became president of CountryB. During a routine client review two years later, it was identified that client's wealth had grown to $510 million.

What are two red flags that indicate money laundering or financial terrorism? (Choose two.)

97. Financial Intelligence Units (FIUs) are responsible for:

98. Which statement is true regarding the FATF standards for SARs/STRs information sharing within a financial group?

99. Which key aspect of the Office of Foreign Assets Control's extraterritorial reach specifically relates to prohibited transactions?

100. What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers