CAMS Practice Questions

A.  

Customers not being physically present for identification purposes

B.  

Customers depositing large amounts of cash

C.  

Customers using anonymous prepaid cards

D.  

Customers betting more than they can afford

E.  

Customers making numerous low-level transactions to avoid enhanced due diligence

A.  

Sanctions can only be placed on certain individuals in foreign countries as designated by OFAC

B.  

Blocked funds must be placed into an interest-bearing account on a financial institution's books

C.  

Sanctions can be either comprehensive or selective using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals

D.  

OFAC sanctions automatically expire after five years unless renewed by Congress

A.  

Ensuring sanctions coy on international bodies like the UN because there is no requirement to adhere to local laws.

B.  

Ensuring group policies and procedures prioritize adherence to US regulations because they are the most influential worldwide.

C.  

Applying global AFC and sanctions policies to ensure consistency without the need to adapt to local regulations.

D.  

Ensuring group policies cater to compliance with each country's specific AML and sanctions regulations.

A.  

List-based

B.  

Secondary

C.  

Country-based

D.  

Sectoral

A.  

have never worked in previous assignments within the AMUCFT departments.

B.  

have no involvement with the organization's AML/CP T compliance staff.

C.  

have been screened by the board of directors before the audit starts

D.  

be sufficiently trained in AML to be able to provide an independent review.

A.  

Paying premium several years in advance and terminating early for a refund

B.  

Natural persons having more than one insurance policy

C.  

High-premium life insurances that provide high payouts

D.  

Regularly switching policies and accepting penalties

E.  

Beneficiary payouts to elderly people

A.  

A lawyer located in a higher risk country deposits their firm's bank draft issued from their trust account to another lawyer's trust account located in a low-risk country for legal services rendered.

B.  

A lawyer's trust account regularly receives wire transfers from unknown remitters from a higher risk country and immediately transfers the same amount of funds received to a known beneficiary's account in a low-risk country.

C.  

A lawyer's trust account receives a large-value wire transfer from a regulated insurance company and immediately transfers the same amount of funds received to the beneficiary's bank account located in a low-risk country.

D.  

A lawyer's trust account receives a large wire transfer deposit from a client that wanted to purchase a piece of property and then transfers the same amount to the property seller's lawyer's trust account.

A.  

Keep an account open upon verbal request

B.  

Produce documents and testimony without a subpoena

C.  

Seize privileged documents upon written request

D.  

Freeze an account in terms of a court order

A.  

Make an official request directly from the head of Country A's anti-corruption authority to Country B's corresponding law enforcement authority

B.  

Make a request for the required evidence using Country A's mutual legal assistance treaty with Country B

C.  

Use the International Criminal Police Organization (INTERPOL) network to obtain the required evidence from Country B

D.  

Use the Egmont Secure Web to obtain the required evidence from Country B's financial intelligence unit

A.  

Determining detailed risk profiles for customers based on their activities and relationships

B.  

Focusing monitoring primarily on previously flagged customers while using standard controls for others

C.  

Choosing and applying effective controls that align with the identified risk levels

D.  

Performing a comprehensive risk assessment to identify customer, transaction, and geographic risks

E.  

Allocating resources equally across all customer segments to ensure fairness