CAMS Practice Questions

A.  

The bank is likely to face secondary sanctions from global financial institutions despite addressing many of the previous concerns.

B.  

The bank may face civil or criminal penalties if it is unable to demonstrate sustained improvement in addressing the previous concerns.

C.  

The bank may face the risk of regulatory orders to remediate its AML program despite addressing many of the previous concerns.

D.  

The bank is protected from reputational risk arising from any regulatory action because regulatory orders must remain confidential.

E.  

The regulatory agency may require the bank's board of directors to publicly share the actions taken to address the previous concerns in order to limit its reputational risk.

A.  

Oversight of the Financial Intelligence Units in FATF Member countries

B.  

Providing a unique platform for information exchange regarding anti-money laundering efforts

C.  

Regulation of financial markets through directives and executive orders

D.  

Enhancement of international cooperation to foster anti-money laundering efforts via recommendations and guidance

A.  

Define in policies and procedures the screening scope, frequency, and alert adjudication process

B.  

Identify the most commonly used name screening database in the industry

C.  

Assign a designated person to ensure consistent implementation of screening controls

D.  

Conduct a risk assessment to determine which data attributes to screen, screening frequency, and database selection

E.  

Conduct regular testing to validate that the screening system is performing as expected

A.  

Attempts to circumvent or evade sanctions imposed by the UNSC can constitute a criminal offense if designated under local laws and regulations

B.  

The UN can impose arms embargoes but cannot prohibit direct or indirect exports of other goods to specific countries

C.  

Member countries of the United Nations are expected to implement and enforce sanctions imposed by the UNSC

D.  

Direct breaches of sanctions imposed by the UNSC constitute a criminal offense in all member countries

A.  

Manually review all flagged relationships for accuracy

B.  

Implement risk-scoring algorithms for indirect connections

C.  

Integrate external databases and social media profiles to cross-check flagged entities

D.  

Focus on direct connections between customers and criminal entities

A.  

Conduct AML audits no less often than every 12 months for consistency in annual reporting.

B.  

Remain independent from expressing opinions on the sufficiency of remediation or action plans to address findings and recommendations.

C.  

Be involved in the day-to-day operations of the AML program to immediately prevent control failures.

D.  

Report to the audit committee of the board of directors to maintain independence.

A.  

Cloud-based deployment

B.  

Configurable reporting

C.  

Fully integrated artificial intelligence (AI)

D.  

Ability to build, iterate, and test rules

A.  

Relevant information should be shared throughout the organization.

B.  

Revenue-generating business sectors should have precedence over compliance.

C.  

First line of defense should establish its own policies independently.

D.  

Cost of compliance should increase proportionately to revenues.

A.  

Organizations are required to demonstrate that customers have opted into information sharing before submitting suspicious activity reports to relevant financial intelligence units (FIUs)

B.  

Any customer that is the subject of a suspicious report filing has the right to request redaction of their personal data

C.  

FIUs should document purposes for which personal data included on suspicious activity reports may be shared with other agencies

D.  

Data privacy laws prohibit information sharing between financial institutions for the purposes of AML investigations in all jurisdictions

A.  

The Bank Secrecy Act (BSA) extraterritorial reach requires that the Travel Rule be applied to all financial institutions globally, including all USD transactions

B.  

The Anti-Money Laundering Act of 2020 (AML Act) extraterritorial reach covers all USD transactions throughout the global economy

C.  

The Office of Foreign Assets Control's (OFAC's) economic and trade sanctions may pose extraterritorial risks for financial institutions and businesses outside of the US

D.  

Section 319(b) of the USA PATRIOT Act extraterritorial reach permits the seizure of funds from a correspondent bank account in the US that have been opened and maintained for the foreign bank