CAMS Practice Questions

A.  

create a common database of key information and share analysis of suspicious activities with FATF

B.  

exchange strategic information between FlUs and obliged entities

C.  

exchange strategic information between financial institutions

D.  

exchange operational information between public authorities and obliged entities

A.  

Customer privacy regulations should guide the development of due diligence and other money laundering and terrorist financing preventive measures.

B.  

Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.

C.  

Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.

D.  

Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.

E.  

Governments must work toward developing identical administrative and operational frameworks for investigating and prosecuting crime.

F.  

Regulators should direct Financial Institutions to establish appropriate frameworks to avoid banking higher risk customers.

A.  

Buying property allows for the movement of large amounts of funds in a single transaction

B.  

Criminal networks could purchase real estate for use as supply houses or locations to grow, manufacture, or distribute illicit narcotics

C.  

Markets can be volatile, and buyers may not achieve a strong return on their investment

D.  

Beneficial ownership information might be opaque, and criminals may abuse arrangements like shell companies and trusts

E.  

Real estate transactions often involve financial institutions and other professional gatekeepers

F.  

The high value of properties may require multiple types of financing, which can make it more difficult to identify the source of funds

A.  

KYC analyst

B.  

Senior management

C.  

Relationship manager

D.  

Enhanced due diligence compliance officer

A.  

Prioritizing resources towards lower-risk areas to reduce workload

B.  

Regularly reassessing risks to adjust resource allocation

C.  

Allocating more resources to areas with higher financial crime risk

D.  

Providing equal resources to all departments to maintain consistency

E.  

Using a fixed resource allocation plan without adjustments

A.  

Training should cover practical examples, use case studies, and provide information on how to comply with policies.

B.  

Up-to-date records including logs of training and completion dates should be maintained.

C.  

Training should be broad, high level, and not role-specific in order to reach the largest audience.

D.  

Training should cover the consequences of not complying with policies and procedures.

E.  

Training should always be provided by an independent third party.

A.  

Memorandum of Agreement.

B.  

Declaration of Understanding.

C.  

Memorandum of Understanding.

D.  

Mutual Legal Assistance Treaty.

E.  

Request for Urgent Information.

A.  

Close the client's account by informing the client of the subpoena.

B.  

Perform a transaction review and respond fully to the subpoena.

C.  

File a suspicious activity report (SAR), including the receipt of the subpoena in the SAR narrative.

D.  

Adjust the client's risk score and close the case.

A.  

include all documents or records that assisted the Fl in making the determination that the activity required a filing.

B.  

always be limited to account name, account details, and transaction records.

C.  

have written policies and procedures to maintain supporting documentation.

D.  

be saved in a single separate file with hard copies stored in a fireproof cabinet.

A.  

The foreign bank must always request approval by its national anti-financial crime authority to share any information cross-border.

B.  

The bank should report this to the Financial Crimes Enforcement Network (FinCEN) and receive formal guidance before sharing the information.

C.  

The bank should consider jurisdictional privacy requirements and its own policies and procedures to determine what information to share.

D.  

The information should only be shared on a need-to-know basis.