Free ACAMS CAMS Practice Exam with Questions & Answers | Set: 10

Understanding the source and origin of assets (C):According to the CAMS 6th Edition (Chapter: Customer Due Diligence and Enhanced Due Diligence) and the EU 4th & 5th AML Directives, regulated entities are required to take adequate measures to understand the source of funds and the origin of assets of their customers, especially when there are higher risk factors such as large transactions or PEPs.“Firms must identify the source and origin of assets to ensure they are not the proceeds of crime or corruption, particularly for higher-risk customers.”(CAMS 6th Edition, CDD/EDD Requirements; EU Directive 2015/849, Article 20)

Performing negative news checks of prospective customers (D):Adverse media screening is an essential part of the onboarding process for identifying potential risks related to money laundering, terrorist financing, or reputational harm.“Negative news or adverse media checks form a vital component of the due diligence process, helping organizations detect links to criminal or suspicious activities.”(CAMS 6th Edition, CDD/EDD Requirements)

Incorrect Options:

A: Onboarding interviews may be part of EDD, but are not a standard or required AML control.

B: PEPs are not to be automatically rejected; instead, enhanced due diligence should be applied.

E: Producing financial stability reports is not an AML control, but may be relevant for credit or investment assessment.

Specialized AML training must be relevant to the specific risks the corporate banking team faces, including legal/regulatory expectations and the ML/TF typologies applicable to their products and customer base.

Applicable AML laws and regulations (B):“Staff must be aware of the applicable AML/CFT laws and regulatory requirements relevant to their business area.”(CAMS 6th Edition, Chapter: AML Training and Awareness)

Money laundering typologies applicable to corporate loans (D):“Training should include typologies and red flags that are most relevant to the risks present in the specific business line, such as corporate lending.”(CAMS 6th Edition, AML Training for High-Risk Departments)

Incorrect Options:

A: Monetary instrument reporting is more relevant to retail/branch banking.

C: Regulatory exam best practices are for compliance teams, not business-line relationship managers.