[Mar-2022] Updated CAMS Certification CAMS Exam Questions BUNDLE PACK
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NEW QUESTION 23
Which three are the most commonly used risk criteria?
- A. Reputation Risk
- B. Customer Risk
- C. Product and Service Risk
- D. Country Risk
Answer: B,C,D
NEW QUESTION 24
When an institution files an STR with regard to a particular account, what steps should the institution take via account?
- A. The institution should not close the account due to the risk of tipping off the customer and upsetting the criminal investigation
- B. The institution should close the account due to the obvious risk it represents
- C. The institution should consult its counsel and AML compliance officer and determine whether closing the account is in accord with the institution's procedures
- D. The institution should keep the account open due to the need to continue to monitor the account
Answer: D
NEW QUESTION 25
What should a compliance officer do during an ongoing investigation into a client's activities by a competent authority?
- A. Communicate with regulatory and law enforcement authorities in line with applicable local laws
- B. Only provide information that is specifically and directly requested
- C. Communicate only in writing regulatory and law enforcement authorities in line with applicable local laws
- D. Ensure communication with regulatory and law enforcement authorities is conducted only through the Board of Directors
Answer: D
NEW QUESTION 26
A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.
During on-boarding, the client's wealth was estimated at $7 million. Shortly thereafter, the client's father became president of Country
B. During a routine client review two years later, it was identified that client's wealth had grown to $510 million.
What are two red flags that indicate money laundering or financial terrorism? (Choose two.)
- A. The holding company is in Country A with a bank account in one of the international banks.
- B. The client is from a country known for corruption.
- C. The substantial growth in wealth during a short period of time.
- D. The client is a family member of a PEP from a country known for corruption.
Answer: C,D
NEW QUESTION 27
What should an institution in their AML policies and procedures?
- A. A component on when and how employees will be trained
- B. Copies of the institutions testing and monitoring results
- C. Names of individuals currently on the OFAC list
- D. A description of money laundering trends and methodologies
Answer: A
NEW QUESTION 28
According to the Second European Union Money Laundering Directive, what may knowledge of criminal conduct be inferred from?
- A. Objective, non-factual circumstances
- B. Subjective, non-factual circumstances
- C. Objective, factual circumstances
- D. Subjective, factual circumstances
Answer: C
NEW QUESTION 29
In May 2002, the Wolfsberg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf.
What is another name for these internal, non-client accounts?
- A. Pay through accounts
- B. Trust accounts
- C. Correspondent accounts
- D. Concentration accounts
Answer: D
Explanation:
Reference:http://www.wolfsberg-principles.com/privat-banking.html(1.2.2, 5th bullet)
NEW QUESTION 30
A client opens a bank account for a multi-level marketing company. The debits and credits of the account are numerous and very involved. Further, there are a lot of international transactions. Also, funds are being tunneled from the company to the client's personal account in another jurisdiction.
Which two steps should law enforcement take in investigating this matter? (Choose two.)
- A. Determine who are the signatories on the account
- B. Ask the bank for the history of this multi-level marketing company
- C. Examine possible Suspicious Activity Report information received from the local Financial Intelligence Units
- D. Examine the flow of money from the company to the individual in an effort to determine if it is legitimate
Answer: A,D
NEW QUESTION 31
The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?
- A. High Risk Countries, including those identified by credible sources as having inadequate Anti-Money Laundering standards
- B. Public officials, including those individuals who have or had positions of public trust
- C. High Risk activities, involving clients and beneficial owners whose source of wealth originates from activities known to be vulnerable to money laundering
- D. Foreign jurisdictions
Answer: A,B,C
NEW QUESTION 32
A corporate services provider in a European Union (EU) country has a prospect from an African country who deals in oil and gas. The prospect intends to develop an oil terminal in his home country with a $75 million dollar loan secured by a third party, which is a trust formed in a Caribbean island with a holding company based in a European secrecy haven. A young lady is presented as an ultimate beneficial owner who has gained her wealth through a fitness studio in her home country.
What are two red flags that could indicate money laundering or financing terrorism? (Choose two.)
- A. The guarantor company's ownership structure is overly complex
- B. The prospect wishes to have a corporate structure with a holding company in EU country
- C. The ultimate beneficial owner is young lady who has gained her wealth through a small business
- D. A loan worth $75 million with a third-party guarantor
Answer: A,C
NEW QUESTION 33
Which of the following is the financial stage of money laundering?
- A. integration
- B. off shoring
- C. structuring
- D. placement
Answer: A
Explanation:
Explanation
Explanation/Reference:
The Integration Stage
The final stage of the money laundering process is termed the integration stage. It is at the integration stage where the money is returned to the criminal from what seem to be legitimate sources. Having been placed initially as cash and layered through a number of financial transactions, the criminal proceeds are now fully integrated into the financial system and can be used for any purpose. There are many different ways in which the laundered money can be integrated back with the criminal; however, the major objective at this stage is to reunite the money with the criminal in a manner that does not draw attention and appears to result from a legitimate source. For example, the purchases of property, art work, jewellery, or high-end automobiles are common ways for the launderer to enjoy their illegal profits without necessarily drawing attention to themselves.
NEW QUESTION 34
A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client's account. Subsequently, the agency requests further information.
Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?
- A. Copies of promotional materials sent to the customer
- B. Previously filed STRs on the same customer
- C. A copy of the institution's STR policy and procedures
- D. Account opening documents and account statements
Answer: D
NEW QUESTION 35
Federal law requires all U.S. financial institutions to secure and maintain all records and supporting documentation used m suspicious activity reporting for how many years?
- A. No requirement
- B. 10 years
- C. 2 years
- D. 5 years
Answer: D
NEW QUESTION 36
Which method is used to launder money in casinos?
- A. Purchase chips with cash and redeem for a check
- B. Purchase chips with cash and redeem for cash
- C. Purchase chips with cash and sell to another person for cash
- D. Purchase chips with cash and play at a table
Answer: A
NEW QUESTION 37
After an institution files an STR with regard to a particular account, a law enforcement agent requests the institution to keep the account open until advised otherwise by law enforcement. What steps should the institution take?
- A. The institution should request a written letter From the law enforcement ( agency signed by an appropriate authorized signature
- B. The institution should keep the account open only if doing so comports with the bank's own AML procedures
- C. The institution should follow the request of the law enforcement agent and keep the account open
- D. The institution should close the account in order not to be caught in the middle of a law enforcement investigation
Answer: A
NEW QUESTION 38
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 a link between the charity group and a known terrorist group
- B. The sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence
- C. There is no risk relating of terrorism financing when the charity group is operating legitimately inthat country
- D. A large sum sent by money order to a charity
Answer: A
NEW QUESTION 39
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