Free Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Practice Questions

A.  

Percentage of regulatory reports for high-risk customers not completed within the required regulatory deadlines

B.  

Percentage change of transaction monitoring alerts escalated for investigation compared to the previous quarter

C.  

Percentage of customers for whom onboarding verification was not completed within KYC policy service-level agreement (SLA) requirements

D.  

Number and percentage of senior politically exposed persons (PEPs) who were onboarded in the past quarter compared to all active customers

A.  

To avoid sanctions breach related to payments

B.  

To avoid onboarding customers previously exited due to true match

C.  

To meet international regulatory requirements and identify risks across jurisdictions

D.  

To be in line with the risk appetite statement

A.  

Send a 314(b) request to the corporation's bank in Hong Kong

B.  

Call the receiving individual to review identity verification documents

C.  

Confirm that neither the beneficiary nor the originator are sanctioned parties

D.  

Request supporting documents, including invoices and contracts to confirm the purpose of the payment

E.  

Check for negative news in public sources on the sender and receiver

A.  

Implementation of a blacklist of correspondent customers with previously detected and investigated suspicious activity

B.  

Enhancement of a customer acceptance policy to more clearly identify high-risk customers

C.  

Increased frequency of training provided to front office employees

D.  

Enhancement of customer identification procedures to appropriately identify trust, nominee, and fiduciary accounts

A.  

Publish standards for reporting suspicions

B.  

Facilitate the organization of regulatory authorities

C.  

Publish decisions taken on international investigations

D.  

Arrange information-sharing protocols between Financial Intelligence Units (FIUs)

A.  

Risk profile of customers

B.  

Available level of automation for the process

C.  

Operational burden of periodic refresh implementation

D.  

Cost of implementation

A.  

A customer changes multiple high-denomination notes to low-denomination notes.

B.  

A customer conducts cash transactions using multiple branches of the MSB on the same day.

C.  

A customer has a family link to the destination of a money transfer

D.  

A customer sends and receives money transfers in equal amounts at or about the same time.

E.  

A customer only wants to deal with a particular employee in the MS

B.  

A.  

Assist financial institutions conducting business in jurisdictions with high data privacy standards in working with industries susceptible to money laundering

B.  

Advise banks to accept only those clients whose source of funds and beneficial ownership is understood

C.  

Establish rules for private bankers on how to deal with politically exposed persons (PEPs) and persons residing in high-risk countries

D.  

Require banks to better manage reputational risk and protect the privacy of wealthy clients

A.  

Utilizing a flexible communication style that adapts to different customer situations during the termination process

B.  

Implementing a standardized procedure for customer termination that includes risk assessments and necessary documentation

C.  

Performing a final review of a customer's transaction history and records to address any unresolved issues prior to termination

D.  

Keeping records of the termination process, including the justification for the decision and any correspondence with the customer

E.  

Notifying the customer of the termination decision only after completing the termination process to prevent possible disputes

A.  

A low-priced security sees a sudden spike in investor demand with a rising price

B.  

A trading customer maintains a portfolio of securities concentrated in one specific emerging market

C.  

A firm sees an unexpected increase in demand for electronically traded funds

D.  

A security sees a transactional pattern of a steady decrease in both trading volume and prices