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Free ACAMS CAMS Practice Exam with Questions & Answers | Set: 14

Questions 261

Which of thebelow statementsare supported by theFinancial Action Task Force (FATF) 40 Recommendationsadopted in 2012? (Select Two.)

Options:
A.

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

B.

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

C.

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

D.

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

E.

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

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Questions 262

Release of the EU's Fourth AML Directive resulted in what change to member state*s procedures? (Select Two.)

Options:
A.

The threshold for reporting suspicious transactions decreased from 15,000 EUR to 10,000 EUR.

B.

All financial institutions were required to identify and verify the beneficial owner of legal entities.

C.

Money laundering and terrorist financing were defined as separate crimes, expanding the directive's measures.

D.

The scope of obliged entities was enlarged from casinos to all providers of gambling services.

E.

Knowledge of criminal conduct could be inferred from objective factual circumstances.

Questions 263

An agent of a wealthy individual residing in Country A, which is on the EU list of high-risk third jurisdictions, approaches a notary in Country B, which is in the EU. The agent wants to complete a disposal of assets recently acquired at auction by the wealthy individual through an offshore company. The agent also has a power of attorney to act on behalf of the offshore company issued by a respectable law firm from Country C, which is also in the EU. The agent asks the notary to proceed with the disposal as quickly as possible without paying any specific attention to related costs or taxes to be paid as a result of this transaction. The notary notices the intended transfer price is significantly lower than the one recorded at auction, but the agent does not want to discuss this matter and claims that it is not covered by the power of attorney.

Which red flags should the notary consider? (Select Two)

Options:
A.

The agent requested a disposal of assets at a lower price than recently acquired.

B.

The assets acquired through an auction were put in the name of an offshore company

C.

The agent acted on behalf of an individual residing in a country which is on the EU's list of high-risk jurisdictions

D.

The power of attorney was issued by a law firm in a different EU country from where the transaction took place.

Questions 264

Following a recent exercise which explained how a correspondent banking operation could be used by money launderers, an anti-money laundering specialist decided to re-write the due diligence procedures for entering into agreements with foreign financial institutions. Which of the following information should be included to establish a rigorous "Know Your Respondent" procedure?

1.Respondent's management, nature of license, and major business activity.

2. Computer equipment and software capability.

3. The quality of supervision in the home country.

4. Respondent's location, in particular the existence of a real physical presence.

Options:
A.

1, 2, and 3 only

B.

1, 2, and 4 only

C.

1, 3, and 4 only

D.

2, 3, and 4 only

Questions 265

The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?

Options:
A.

Foreign jurisdictions

B.

High Risk Countries, including those identified by credible sources as having inadequate Anti-Money Laundering standards

C.

High Risk activities, involving clients and beneficial owners whose source of wealth originates from activities known to be vulnerable to money laundering

D.

Public officials, including those individuals who have or had positions of public trust

Questions 266

Under requirements for correspondent accounts in the USA PATRIOT Act, the word "certification" refers to a written representation by a

Options:
A.

federal receiver" certifying that he is not the beneficial owner of the correspondent account.

B.

respondent bank, certifying that they do not do business with politically exposed persons.

C.

correspondent bank, certifying that they do not open correspondent accounts for alternative remittance companies.

D.

respondent bank, certifying that they do not do business with shell banks.

Questions 267

Which statement regardingdata privacyis the most accurate in the context ofAML investigations?

Options:
A.

FIUs should document purposes for which personal data included on Suspicious Activity Reports (SARs) may be shared with other agencies.

B.

Any customer that is the subject of asuspicious report filinghas the right to request redaction of their personal data.

C.

Data privacy laws prohibit information sharing between financial institutions for the purposes of AML investigations in all jurisdictions.

D.

Organizations are required to demonstrate that customers have opted into information sharing before submitting SARs to relevant Financial Intelligence Units (FIUs).

Questions 268

Which of the following is among the Financial Action Task Force criteria defining non-cooperative countries and territories?

Options:
A.

inadequate rules for the licensing and creation of financial institutions, including assessing backgrounds of managers and beneficial owners

B.

effective laws regarding multiple sources of beneficial owner identification by a financial institution

C.

the presence of bank secrecy provisions reasonably balanced against the government's need for information

D.

the establishment of a system for reporting "unusual" transactions, instead of "suspicious", as mentioned in the Financial Action Task force 40 Recommendations

Questions 269

A compliance officer provides an overview of the bank’s anti-money laundering program to a group of new

tellers during employee orientation.

Which training element should be delivered to this audience?

Options:
A.

Results of recent risk assessments

B.

Large cash transaction reporting procedures

C.

The financial institution’s surprise cash audit policy

D.

Past check fraud losses incurred by the financial institution

Questions 270

What is the most effective criterion for determining the beneficial ownership of funds?

Options:
A.

Having signature authority over the account

B.

Being the person in whose name an account is opened with a financial institution

C.

Having control over such funds or entitlement to such funds

D.

Being a person who is the trusted party in a correspondent banking relationship

Questions 271

Which situation is the highest risk for money laundering and terrorist financing activity?

Options:
A.

A customer purchases casino chips, using small denomination bank notes, but does not engage in game play before redeeming the chips for a casino check

B.

A customer purchases casino chips and engages in significant game play before requesting a casino check for the remainder

C.

A customer purchases casino chips using a credit card and engages in minimal game play before redeeming the chips for a casino check

D.

A customer purchases casino chips using credit from an account at an affiliated casino and engages in significant game play before redeeming the chips for a

Questions 272

Which action should countries take related to the financing of terrorist acts in accordance with the Financial

Action Task Force 40 Recommendations?

Options:
A.

Oppose

B.

Sanction

C.

Prosecute

D.

Criminalize

Questions 273

Which insurance product is particularly vulnerable to money laundering?

Options:
A.

Annuity

B.

Casualty

C.

Collateral

D.

Regulated pension

Questions 274

A bank sells reloadable open-loop prepaid cards to both customers and non-customers.

What is a red flag associated with these cards that may indicate money laundering?

Options:
A.

A bank customer historically purchases several prepaid cards near year-end.

B.

A non-bank customer regularly loads large amounts of cash onto several prepaid cards.

C.

A non-bank customer consistently uses the bank to obtain cash advances using a prepaid card.

D.

A bank customer routinely purchases five prepaid cards in small even-dollar amounts on a monthly basis.

Questions 275

A compliance analyst is reviewing the account activity of a customer that they suspect may be indicative of money laundering activity. Which is difficult to determine solely from the customer's account activity and KYC file?

Options:
A.

If the activity is materially different from related businesses

B.

If the account has multiple transfers to the same, related businesses

C.

If there is negative media associated with counterparties

D.

If the account is mostly dormant or has little activity

Questions 276

How do nominees benefit criminals misusing thorn for money laundering purposes? (Select Two.)

Options:
A.

Allow beneficial owners to provide proxies lot voting on corporate decisions

B.

Obscure beneficial ownership

C.

Allow domicile in the nominee's jurisdiction

D.

Derail investigations

Questions 277

Which requirement is included in the Fourth European Union Directive on money laundering?

Options:
A.

It requires obliged entities to consider politically exposed persons as high risk for life

B.

It requires obliged entities to conduct enhanced due diligence on all prepaid card holders

C.

It requires member countries to maintain registries of the beneficial owners of legal entities

D.

It requires member states to enact economic sanctions against countries that do not cooperate withFinancial Action Task Force recommendations

Questions 278

Historically, which vehicle is most often used to hide beneficial ownership?

Options:
A.

Professional association

B.

An offshore company

C.

A limited liability partnership

D.

A charitable organization

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