Certified Anti-Money Laundering Specialists (the 6th edition)

Question 1

A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion.
What is a key risk indicator associated with terrorism financing?

A. There is no risk relating of terrorism financing when the charity group is operating legitimately in that country

B. There is a link between the charity group and a known terrorist group

C. The sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence

D. A large sum sent by money order to a charity

Correct Answer: B

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Question 2

A large financial institution (Fl) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the Fl's risk appetite beyond the stated acceptable amount. Which risk factors should be used to identify the priority of the Fl?

A. Unknown third-party risks

B. Anonymous transactions risks

C. Geographic risks

D. Cash-intensive businesses risks

Correct Answer: C

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Question 3

The findings of an internal audit discover that a large group of employees do not know how to handle Politically Exposed Persons (PEPs). Which is the next course of action that should be taken?

A. De-risk all PEPs from the financial institution (FI) to ensure compliance.

B. Create a company-wide training program.

C. Revamp the compliance program to better identify PEPs.

D. Ensure all new-hire individuals have in-depth knowledge of PEPs.

Correct Answer: B

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Question 4

Anewly appointed senior money laundering reporting officer (MLRO)at adigital bankhas been instructed toimplement an effective AML transaction monitoring system.
What areimportant considerationsfor selecting and implementing the AML system? (Select Two.)

A. Whether the monitoring system can be configured to enable the bank to execute trend analysis of transaction activity and to identify unusual business relationships and transactions.

B. Whether the vendor has documented appropriate internal controls for designing the system and data integration schema.

C. Whether the permissions and user access settings for reviewing, investigating, and reporting details of alerts generated by the system are commensurate with those in use at other banks.

D. Whether the monitoring system is adequate with respect to the bank's size, activities, complexity, and risks.

Correct Answer: A,D

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Question 5

A high volume of incoming wire transfers generates an alert about a client. The funds are immediately debited by cash withdrawals and outgoing wire transfers. Which information should be reviewed first to investigate this alert/case?

A. Adverse media search

B. Account activity

C. Open source information

D. Customer profile

Correct Answer: B

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Question 6

Which statement is true about when an institute becomes aware that a particular employee is under investigation by law enforcement as a result of a subpoena or warrant?

A. Under no circumstances can the employee be interviewed by the institution without the consent of law enforcement for fear of tipping the employee off

B. The institute has a duty as an employer to inform the employee he or she is under investigation by law enforcement, buy must not inform them that a warrant or subpoena has been received

C. The employee can and should be interviewed, as well as notified of the investigation to demonstrate the seriousness of the offence and to get the employee's full attention and cooperation

D. If an independent investigation provides grounds to interview the employee, they can be interviewed and, if necessary, terminated buy not advised that they are under investigation

Correct Answer: D

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Question 7

Which of the following businesses require enhanced or additional scenarios for identifying anomalous transactions? (Select Two.)

A. Companies operating hospitals and health-care services

B. Companies producing pharmaceutical products and medical devices, companies active in the mining industry

C. Companies operating in cash intense businesses subject to licensing requirement

D. Companies operating retail shops countrywide

E. Companies operating in cash intense businesses not subject to licensing requirement

Correct Answer: C,E

Question 8

A law enforcement agent calls a bank anti-money laundering investigator for supporting information about a suspicious transaction report that was filed the previous month.
How should the investigator respond?

A. Share the requested information during the telephone call

B. Send the information to an address provided by the agent

C. Require a search warrant before releasing the information

D. Refer the agent to the bank's compliance officer

Correct Answer: D

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Question 9

When a government imposes economic sanctions on a target the purpose is to:

A. protect the rights of the citizens of the state target against their own government and improve financial stability in the region.

B. interests encourage non-governmental organizations to increase the provision of humanitarian and charitable aid to the target

C. alter the behavior of the state or non-state target that threatens the interests of that government or violates international norms

D. indicate that the use of military force is likely unless the state or non-state target complies with the government's

Correct Answer: C

ACAMS Certified Anti-Money Laundering Specialists (the 6th edition) - CAMS Exam Practice Test

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