CAMS Practice Questions

A.  

AML and Data Protection Privacy laws should not be mutually exclusive.

B.  

During evidence gathering, privacy laws are less important than local AML laws.

C.  

Terrorist financing is more relevant in the context of data protection and supersedes laws.

D.  

Countries should clarify where AML and Data Protection Privacy laws are not balanced.

A.  

Enhanced due diligence (EDD)

B.  

Transaction monitoring

C.  

Customer risk assessment

D.  

Sanctions screening

A.  

All the financial institutions where the new customer currently banks or banked previously

B.  

The type of business the corporate customer is engaged in

C.  

The employment profiles and information of all employees of the new customer

D.  

The country or location where the customer is from or conducts business

E.  

The identity of senior managing officials and all individuals authorized to operate the account

A.  

Investment advisor

B.  

Relationship manager

C.  

Operations manager

D.  

Compliance officer

A.  

Accounting

B.  

Model risk management

C.  

Technology solutions and IT security

D.  

Marketing

E.  

Fraud risk management

A.  

Trade-based

B.  

Check Kiting

C.  

Microstructuring

D.  

Structuring

A.  

A beneficiary of a transaction is a politically exposed person.

B.  

A FI is unable to verify the relevant customer due diligence documents.

C.  

A FI identifies the payer is a dealer in precious metals or stones.

D.  

A transaction involves funds exchanged from crypto to fiat currencies.

A.  

Be consistent with the head office audits

B.  

Be tailored to the higher of standards between the jurisdictions.

C.  

Conform to the foreign jurisdiction policies to align with the head office policies.

D.  

Provide all foreign jurisdiction reports to the head office for approval.

A.  

Tipping off is an obligation only applied to AFC professionals and bank staff because they are required to file a Suspicious Activity Report (SAR).

B.  

Tipping off is a criminal act whereby confidential information about a financial crime investigation is disclosed in an unauthorized manner to a third party who may be the subject of the investigation or able to prejudice it.

C.  

Tipping off is not committed when detailed inquiries are made with a customer whose transactions have been flagged by a transaction monitoring system.

D.  

When an unusual transaction is detected, an AFC professional can instruct the relationship manager to communicate with the customer to decide whether a SAR should be filed.

A.  

Defining a common communication approach and language between all involved parties.

B.  

Delays in the investigation due to a foreign FIU awaiting the results of queries performed by third parties.

C.  

Conducting an investigation in all countries through which ML funds were transferred when one or more of the countries do not have an FIU.

D.  

Investigations which involve high-ranking politicians, who often have influence over the local FIU.