CAMS Practice Questions

A.  

Adversary governments using sophisticated attacks to threaten critical infrastructure and sectors, including finance, health care and energy

B.  

Networks of individuals and entities exploiting financial systems to move funds that will be used to acquire weapons of mass destruction or their components

C.  

Transnational criminal organizations expanding their engagement into more varied types of illicit activities, including human trafficking and corruption

D.  

Networks of individuals and entities raising funds to further proliferate their ideological goals wholly or in part through unlawful acts of force or violence

A.  

Sourcing of key resources

B.  

Rapid exchange of information on risks and high-risk activities or persons

C.  

Ensuring understanding of politically exposed persons (PEPs)

D.  

Obtaining salaries in the financial industry

A.  

Subscribing lo a regulators' newsletter

B.  

Using a specific provider for regulatory horizon scanning

C.  

Regularly contacting the regulator to inquire about updates and future developments

D.  

Relying on information and insights from peers and working groups

A.  

allows Financial Intelligence Units (FlUs) to enact sanctions against perpetrators of financial crime

B.  

promotes financial transparency and protects the integrity of the financial systems

C.  

needs to be approved by the Financial Intelligence Unit (FIU) before sharing between financial institutions

D.  

helps financial institutions to be more effective in fighting crime with data analysis

A.  

using shell companies or trusts for privacy, lax planning, or asset protection.

B.  

in the names of unrelated thud patties.

C.  

using the proceeds from selling a prior property or liquidating investments to make an all-cash purchase

D.  

using legal entities and intermediaries to protect the privacy of the purchasers.

E.  

using loans backed by cash or certificates of deposit.

A.  

executing cross-border transactions for their own business which is not commensurate to the PEP's wealth.

B.  

in a position to provide more information regarding the PEP's whereabouts and hidden properties.

C.  

travelling to offshore jurisdictions often on holiday which exposes them to higher risks for AML.

D.  

used as intermediaries to facilitate bribery or corruption or to conceal the illicit wealth of the PEP.

A.  

Cash-intensive businesses risks

B.  

Unknown third-party risks

C.  

Geographic risks

D.  

Anonymous transactions risks

A.  

ML undermines the integrity and stability of financial systems and makes them vulnerable to illegal activity. This can erode investor confidence and hinder economic growth.

B.  

When a financial institution (FI) is found to be promoting ML or violating AFC regulations, this can lead to a loss of confidence in the institution and a loss of customers. Interestingly, this scenario might sidestep any legal consequences for the Fl.

C.  

When laundered funds flow into legitimate economies, they can be used for illegal purposes, such as funding terrorist activities or organized crime. This distorts resource allocation and undermines development.

D.  

Jurisdictions perceived as having insufficient ML measures might be identified as uncooperative or high-risk, potentially facing restricted access to international markets, though economic sanctions by other countries are an unlikely outcome.

A.  

Policies are broad guidelines. Procedures are detailed instructions for specific processes. Only procedures are mandatory for knowledge and adherence.

B.  

Policies define the principles of an organization and influence the drafting of procedures. Procedures are detailed instructions for specific processes.

C.  

Policies are detailed instructions for specific processes. Procedures are an overarching framework. Neither policies nor procedures are mandatory for knowledge and adherence.

D.  

Policies are detailed instructions for specific processes. Procedures are an overarching framework. Both policies and procedures are mandatory for knowledge and adherence.

A.  

Securely share sensitive information in the fight against money laundering and the financing of terrorism

B.  

Establish an environment to foster trust amongst countries

C.  

Sign memoranda of cooperation that recognize and allow room for case-by-case solutions to specific problems

D.  

Improve global cooperation between FIUs

E.  

Propose legislation to combat financial crime, including money laundering and the financing of terrorism