[Oct-2023] ACAMS CAMS Actual Questions and Braindumps [Q41-Q59]

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[Oct-2023] ACAMS CAMS Actual Questions and Braindumps

Pass CAMS Exam with Updated CAMS Exam Dumps PDF 2023

The CAMS certification exam covers a wide range of topics related to AML and financial crime prevention, including risk assessment, customer due diligence, transaction monitoring, sanctions screening, and regulatory compliance. CAMS exam is designed to test the knowledge and skills of professionals working in AML compliance and ensures that they have a comprehensive understanding of the latest AML regulations, laws, and best practices. Certified Anti-Money Laundering Specialists certification exam is rigorous and requires a thorough understanding of the subject matter, making it a valuable credential for professionals looking to advance their careers in the field.

ACAMS CAMS (Certified Anti-Money Laundering Specialist) exam is a globally recognized certification program designed for professionals who deal with anti-money laundering (AML) compliance. Certified Anti-Money Laundering Specialists certification is a standard that is widely recognized by financial institutions, government agencies, and other organizations that are committed to preventing financial crimes. The CAMS exam is a rigorous test that measures an individual’s knowledge and expertise in AML policies and procedures.

QUESTION 41
What are three indicators of money laundering associated with using electronic funds transfers? Choose 3 answers

Funds transfers to or from a financial secrecy haven without an apparent business reason

Regular and frequent transfers from the account of a large company said to be payment forgoods bought on credit

Funds transfers are received or sent from the same person to or from different accounts

Payment or receipts with no apparent link to legitimate contracts, goods or services

QUESTION 42
Which three should real estate agents include in the criteria to assess their company’s potential money laundering and terrorist financing risks when implementing a reasonable risk-based approach?

Credit Risk

Customer Risk

Transaction Risk

Geographic Risk

Reference:
http://www.fatf-gafi.org/media/fatf/documents/reports/RBA%20Guidance%20for%20Real%20Estate%20Agents (page 20, second paragraph)

QUESTION 43
Which product is considered to be of highest money laundering risk?

Credit cards

Savings accounts

Time deposit accounts

International wire transfers

Explanation
You cannot make international money transfers unless the money is credited to the account. So first priority saving account, subsequent risk international wire transfer
“A savings account, as well as a checking account, can be one of the riskiest financial instruments for money laundering operations given the ease with which it can be opened and operated”.

QUESTION 44
The anti-money laundering compliance officer for a small money transmitter has several agent locations in the same geographic area in the United States. The customers are immigrants from Country A and the majority of the funds are remitted to Country A.
In a meeting with one of the agents, it is recently discovered that two new customers have been coming in three times a week and sending funds to the same recipient in Country
B. Each cash transaction always totals exactly
$8,000.
What should alert the agent to possible money laundering activity by the two customers?

They remit funds to the same person

They have been coming in three times a week

It is unusual for customers to remit to Country B

Each of their transactions is just below the cash reporting threshold

QUESTION 45
A compliance officer identifies a potentially significant risk in a popular financial product. Further investigation reveals there is no mitigating control.
Which course of action should the compliance officer take?

Launch a long-term project to remediate the control deficiency

Note the risk and address it during the next round of policy and procedure review

Immediately cease providing the product and only offer it after effective permanent mitigation is implemented

Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed

Explanation
as there’s NO mitigating control, the temporary control system must be developed and implemented until the permanent mitigating control is developed and implemented.

QUESTION 46
Which red flags should be considered prior to establishing a relationship with a third party? (Select Two.)

The third party has a lack of anti-corruption compliance clauses in agreements.

The third party’s amount to be paid for goods and services appears to be reasonable.

The third party has requested unusual payment or billing procedures.

The third party has a declaration of non-family or business ties with government officials.

The third party has sufficient capability to provide the services or goods for which it is being engaged.

Explanation
The red flags that should be considered prior to establishing a relationship with a third party are the lack of anti-corruption compliance clauses in agreements (A) and unusual payment or billing procedures requested by the third party (C). According to the Certified Anti-Money Laundering Specialist (CAMS) Sixth Edition manual, “red flags include, but are not limited to: […] lack of anti-corruption compliance clauses in agreements (page 330) and unusual payment or billing procedures requested by the third party (page 331).”

QUESTION 47
Bank A is a non-United States (U.S.) bank that has $5 million in a correspondent account at a bank in New York City. The Worldwide Terrorist Syndicate (WTS) has $1 million in its account at a non-US branch of Bank A.
The U.S. government has initiated forfeiture action against the WTS.
Which potential action can the U.S. take under the USA PATRIOT ACT pursuant to the issuance seizure warrant?

Seize Bank A’s $5 million correspondent account in the U.S.

Seize WTS’ $1 million account at the non-U.S. branch of Bank A.

Seize $1 million from Bank A’s correspondent account in the U.S.

Seize $5 million from the non-U.S. branch of Bank A where the WTS’ account is located.

QUESTION 48
An institution is about to release a new peer to peer (P2P) funds transfer product to provide much needed remittance services to an under-banked population segment in the country.
The service allows customers to transfer funds through a mobile banking application to individuals worldwide entering only a name and mobile number. The new service charges less than comparable market solutions and offers real time transfer of funds. The customer onboarding process is conducted at branch locations with identity verification.
Which three present the highest anti-money laundering or sanctions risk and will require controls prior to launch? (Choose three.)

Customer onboarding

Cross-border functionality

Real time transfer of funds

Servicing the under-banked population

Limited access to counterparty information

QUESTION 49
Which practices are dealers in antiques, precious metals, precious stones, jewelry, and art advised to follow to reduce the element of money laundering risk? Choose 3 answers

Insist on all vendors signing a declaration that the item placed by them for sale was not stolen or acquired through illegitimate means

Verify the identities of all new vendors and customers and conduct due diligence on them

Avoid accepting cash payment from the buyers

Insist all vendors submit an appropriate license issued by enforcement agencies authorizing the sale

QUESTION 50
Which regulatory bodies cooperate when dealing with cross-border suspicious or unusual financial activity investigations?

European Commissions

Financial Intelligence Units

Wolfsberg Groups

Financial Action Task Forces

Explanation
Financial Intelligence Units (FIUs) are the primary channels for sharing financial intelligence both within countries and across borders. FIUs cooperate with each other and other relevant law enforcement, regulatory, or intelligence agencies in the fight against money laundering, terrorism financing, and other financial crimes.

QUESTION 51
A financial institution (FI) is being investigated for possible money laundering. When cooperating with law enforcement agencies, which additional steps should the FI ensure are taken? (Choose two.)

Centralized control is maintained over all requests and responses to ensure completeness and timely responses.

Make employees, including corporate officers, unavailable for interviews and refuse documents upon receipt of a subpoena.

Subpoenas and other information requests should be reviewed by senior management and an investigations group or counsel.

Address the document destruction policy to ensure the relevant documents are destroyed.

Inquiries from the media are not answered directly, but rather are addressed by replying, “No comment.”

QUESTION 52
You design an AI solution that uses an Azure Stream Analytics job to process data from an Azure IoT hub. The IoT hub receives time series data from thousands of IoT devices at a factory.
The job outputs millions of messages per second. Different applications consume the messages as they are available. The messages must be purged.
You need to choose an output type for the job.
What is the best output type to achieve the goal? More than one answer choice may achieve the goal.

Azure Event Hubs

Azure SQL Database

Azure Blob storage

Azure Cosmos DB

Stream Analytics can target Azure Cosmos DB for JSON output, enabling data archiving and low-latency queries on unstructured JSON data.
References:
https://docs.microsoft.com/en-us/azure/stream-analytics/stream-analytics-documentdb-output

QUESTION 53
Which two individuals are ordinarily beneficial owners of a private banking account according to the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)

Those two are authorized signers on the account

Those who have legal title to a controlling share interest in the customer

Those who generally have ultimate control through ownership or other means over the funds in the account

Those who are the ultimate source of funds for the account and whose source of wealth should be subject to due diligence

QUESTION 54
Which three definitions of money laundering are included in the expanded definition of the European Union Fourth Directive? (Choose three.)

The creation of shell companies to disguise the identity of its owners

The conversion or transfer of property with knowledge that it is derived from criminal activity

The acquisition or use of property knowing, when it was received, that it was derived from criminal activity

The transfer of cash in excess of 15,000 euros across country borders regardless of whatever the cash was derived from criminal activity

Concealing or disguising the nature, source, location, disposition, movement, rights with respect to, or ownership of property, knowing that the property is derived from criminal activity

Explanation/Reference: https://books.google.com.pk/books?id=CMixCwAAQBAJ&pg=PA344&lpg=PA344&dq=european
+4th+directive+Concealing+or+disguising+the+nature,+source,+location,+disposition,+movement,+rights+with
+respect+to,+or+ownership+of+property,+knowing+that+the+property+is+derived+from+criminal
+activity&source=bl&ots=nOUQRszJ6_&sig=ACfU3U1NigFiOY5Zkj30B9FlPI1UhyUMEg&hl=en&sa=X&ved=2a hUKEwibgbi9op3oAhVPfH0KHV0wBXoQ6AEwAHoECBIQAQ#v=onepage&q=european%204th%20directive%
20Concealing%20or%20disguising%20the%20nature%2C%20source%2C%20location%2C%20disposition%
2C%20movement%2C%20rights%20with%20respect%20to%2C%20or%20ownership%20of%20property%2C
%20knowing%20that%20the%20property%20is%20derived%20from%20criminal%20activity&f=false

QUESTION 55
Which is a red flag for funds transfers?

Funds transfers are received in numerous small quantities from entities that are in related industries.

Funds transfers are repeatedly sent to the same beneficiary out of line with the business purpose.

Funds transfers are repetitive and within expected patterns.

Funds transfers are to a higher-risk geographic location with a known supplier within the same industry as the originator.

QUESTION 56
Which of the following is the financial stage of money laundering?

integration

structuring

off shoring

placement

QUESTION 57
A bank receives a request for a subpoena (or a client who has been the subject of monitoring for several months. The bank wishes to close the account in order to mitigate any additional risk. However, the government requires that the account remain open. What document must be provided to the bank to keep the account open?

An email agreement between the government and the financial institution to keep the account open

A request in writing under proper letterhead and authority from the government

An order to keep the account open but with the funds frozen

An authorization from the board of directors

Explanation
If a financial institution wishes to close an account due to concerns about potential money laundering or other financial crimes, it is generally required to file a suspicious activity report (SAR) with the appropriate government agency. However, there may be instances where the government requires the account to remain open for ongoing investigation purposes.
In such cases, the government must provide a written request under proper letterhead and authority to keep the account open. This document will serve as legal justification for the financial institution to maintain the account, even though it may pose a higher risk for money laundering or other financial crimes.

QUESTION 58
How can a financial institution verify the nature and purpose of a business and its legitimacy?

By reviewing a copy of the corporation’s latest audited reports and accounts

By undertaking a company search or other commercial inquires to see that the institution hasnot been, or is not in the process of being dissolved of terminated

By reviewing the company’s website

By using an independent information verification process, such as by accessing public andprivate databases

QUESTION 59
What are two requirements with respect to supporting documentation that is used to identify potentially suspicious activity, according to Financial Action Task Force? (Choose two.)

It must be retained for at least five years

It must be retained for at least seven years

It must be kept in a manner so that it can be provided promptly

It must only be released to the government through a subpoena process

Reference: https://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%
20Recommendations%202012.pdf

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