Acams cams practice test

Certified Anti-Money Laundering Specialist Exam


Question 1

The main purpose of the US Treasury Department for OFAC's extraterritorial reach is to:

  • A. accomplish the foreign policy and national security goals of the US.
  • B. defend the US against questionable trade practices of its economic rivals.
  • C. protect allied nations of the US from the economic threats of non-allied nations.
  • D. align OFAC's and other countries' extraterritorial reach requirements.
Answer:

A

Explanation:
Reference:
https://www.natlawreview.com/article/aggressive-extraterritorial-reach-us-economic-
sanctions-foreign-company-exposure-to
149/149

Discussions

Question 2

The bank's Compliance Officer is tasked with designing standards based on Basel's KYC principles.
Which essential elements should be included in the program? (Choose two.)

  • A. Appointing an independent audit function
  • B. Conducting a money laundering risk assessment
  • C. Documenting a customer acceptance policy
  • D. Establishing on-going monitoring of high-risk accounts
  • E. Reporting suspicious activity
Answer:

C, E

Explanation:
Reference:
https://www.bis.org/publ/bcbs77.pdf
148/149
Questions & Answers PDF
P-

Discussions

Question 3

A SAR/STR should be filed when the accountable institution identifies that:

  • A. a customer makes a cash deposit in round dollars.
  • B. cash transactions have values which avoid reporting thresholds.
  • C. an alert is generated by a transaction monitoring system.
  • D. an employee is not clearing alerts in a timely manner.
Answer:

C

Explanation:
Reference:
https://www.fdic.gov/regulations/examinations/supervisory/insights/siwin07/article03_connecting.
html

Discussions

Question 4

147/149
Questions & Answers PDF
P-
An analyst reviewing trade finance transactions notices an increase in price of 25% over 12 months
for commodities with the same specification and quantity. Which action should the analyst take?

  • A. Produce an investigation report that finds evidence to substantiate the analyst's suspicion and submit a SAR/STR.
  • B. Produce an investigation report that considers client activity and factors that may have legitimately affected transaction cost.
  • C. Produce an updated due diligence record for the client so that monitoring can be enhanced.
  • D. Produce a SAR/STR that describes apparent trade-based money laundering and submit to the Financial Investigation Unit (FIU).
Answer:

B

Discussions

Question 5

Which key factor would result in the decision for a financial institution (FI) to exit a client
relationship?

  • A. After assessing all risk factors the level of residual client risk exceeds the FI's risk appetite.
  • B. The client is a registered charity known to remit funds to high risk geographies where there is limited due diligence information available.
  • C. Closing the client accounts will help reduce the number of transaction monitoring alerts.
  • D. Client transactions generate ongoing transaction monitoring alerts that did not result in any SAR/STR filings.
Answer:

A

Discussions

Question 6

Financial institutions (FIs) perform AML risk assessments to ensure:

  • A. a record for regulators indicating an AML risk assessment was completed at least once.
  • B. internal audit assurance that all AML-related policy and procedures are board approved.
  • C. satisfaction of the board of directors' approved risk appetite.
  • D. proper controls surrounding higher-risk products, services, customers, and geographic locations.
Answer:

D

Explanation:
Reference:
https://www.wolfsberg-
principles.com/sites/default/files/wb/pdfs/faqs/17.%20Wolfsberg-Risk-Assessment-FAQs-2015.pdf

Discussions

Question 7

146/149
Questions & Answers PDF
P-
What national agency is responsible for analyzing and assessing the information it receives to
substantiate possible existence of money laundering or terrorist financing activities?

  • A. The Financial Intelligence Unit (FIU)
  • B. FATF
  • C. The Basel Committee
  • D. The Wolfsberg Group
Answer:

B

Explanation:
Reference:
https://www.fatf-
gafi.org/media/fatf/content/images/National_ML_TF_Risk_Assessment.pdf

Discussions

Question 8

When performing a risk assessment, which factors should be considered when identifying and
measuring risk? (Choose two.)

  • A. Customer composition
  • B. Financial performance
  • C. Product offerings
  • D. Regulatory environment
  • E. Company culture
Answer:

A, D

Discussions

Question 9

Which are common types of economic sanctions? (Choose three.)

  • A. Targeted sanctions
  • B. Technological sanctions
  • C. SWIFT network sanctions
  • D. Sectoral sanctions
  • E. Supervisory sanctions
  • F. Comprehensive sanction
Answer:

A, C, F

Explanation:
Reference:
https://www.cfr.org/backgrounder/what-are-economic-sanctions

Discussions

Question 10

Which private banking situation requires due diligence actions to be implemented according to the
AML principles of the Wolfsberg group?

  • A. A local wealthy individual wants to become a customer of a local retail bank.
  • B. A beneficial owner of an exchange house wants to open an account with the bank.
  • C. A wealthy individual from a high-risk country wants to open an account with a private bank.
  • D. A new customer asks to set up an exchange house using the bank as the correspondent.
Answer:

C

Discussions
To page 2