Acams CAMS Exam Questions Instant Access - No Installation Required

Question 1

The primary objectives of the United Nations in developing sanctions regimes include: (Select Three.)

Ato force developing nations to adopt liberal or substantive democracies.

Bto support governments and regimes in the peaceful resolution of conflict.

Cto punish governments for having weak financial crime controls.

Dto deter non-democratic and non-constitutional changes within countries.

Eto support the protection of human rights.

Answer : B, D, E

UN sanctions regimes are not punitive but aim to:

B: ''Support peaceful resolution of conflicts.''

D: ''Deter non-democratic and unconstitutional changes of government.''

E: ''Promote respect for human rights and humanitarian law.''(CAMS 6th Edition, United Nations Sanctions; UN Security Council Mandates)

Incorrect:

A: The UN does not impose sanctions to force regime type.

C: Sanctions are not for punishing weak AML controls.

CAMS 6th Edition, UN Sanctions

UN Security Council, Sanctions Objectives

Question 2

According to the Financial Action Task Force (FATF) report on terrorism financing, charities and nonprofit organizations are often vulnerable to terrorist financing because they: (Select Two.)

ACollect donations from various sources, and their primary objective is philanthropy and social wellbeing

BAre usually legitimate establishments and will not use the funds collected through donation for the profit of individuals or entities

CHave a global presence that provides a framework for national and international operations and financial transactions that are often in or near areas most exposed to terrorist activity

DEnjoy the public trust and have access to considerable sources of funds, and their activities are often cash intensive

Answer : C, D

Question 3

Risks associated with real estate transactions include: (Choose two.)

Across-border purchases

Bpurchases in the name of a natural person

Cpaying true market price for a property

Dnon-financed purchases

Answer : A, D

Cross-border purchases increase complexity and risk due to differing regulations and potential anonymity.

Non-financed purchases, especially in cash, can facilitate money laundering by avoiding traditional financial scrutiny.

Question 4

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

AAllow beneficial owners to provide proxies lot voting on corporate decisions

BObscure beneficial ownership

CAllow domicile in the nominee's jurisdiction

DDerail investigations

Answer : B, D

Question 5

The compliance department of a casino is reviewing recent transactions and has identified activities that may require further scrutiny.

Which transaction would require further investigation?

AA patron who regularly visits the casino, deposits small amounts of cash, and consistently requests to cash out winnings in high-value checks

BA group of tourists who buy chips with credit cards and engage in high-stakes games before cashing out

CA player who purchases USD 50,000 in chips using a combination of cash and a wire transfer from an international account, does not gamble, and then cashes out

DAn occasional visitor who plays low-stakes games using a prepaid debit card linked to a foreign account

Answer : C

Casinos are recognized as high-risk entities under AML/CFT frameworks due to their exposure to large cash volumes and convertible instruments such as chips. Regulators and FATF guidance highlight minimal or no gaming activity combined with rapid cash-out as a major red flag.

In this scenario, the player purchases a large amount of chips using multiple funding methods, including an international wire transfer, does not engage in any gambling, and then immediately cashes out. This behavior is consistent with placement and layering techniques, where a casino is used as a pass-through to legitimize illicit funds.

The absence of gaming activity strongly suggests that the intent was not entertainment but financial manipulation. Casinos are frequently misused for this exact purpose due to their ability to convert cash into ''winnings.''

The other scenarios describe activity that may be higher risk but are consistent with legitimate casino behavior when properly documented.

Question 6

Financial Intelligence Units (FIUs) help to protect financial integrity by: (Select Two.)

AReceiving and analyzing Suspicious Activity Reports (SARs) to detect financial crime

BDisseminating information on emerging trends related to money laundering and associated predicate offenses

CAssisting financial institutions with designing products and services that lower residual money laundering risk

DEnsuring financial institutions maintain appropriate AML programs commensurate with their risk profiles

Answer : A, B

Financial Intelligence Units (FIUs) play a central role in national and international AML/CFT frameworks. According to FATF standards, FIUs are responsible for the receipt, analysis, and dissemination of financial intelligence related to suspected money laundering, terrorist financing, and predicate offenses.

One core function of an FIU is receiving and analyzing SARs submitted by financial institutions and other obliged entities. Through analysis of reported information, FIUs identify suspicious patterns, trends, and networks that may indicate financial crime.

Another key function is disseminating intelligence and typologies to competent authorities and, where appropriate, to the private sector. This includes sharing insights on emerging risks, new money laundering methods, and evolving threat trends, which enhances system-wide financial integrity.

FIUs do not design financial products for institutions, nor do they supervise AML programs---that responsibility lies with AML supervisory authorities. Their role is intelligence-focused rather than regulatory or commercial.

Question 7

Which of the following is a crucial step for a financial institution when leveraging regulatory reports to improve transaction monitoring? (Select Two.)

AComparing internal data across all sectors and products referenced in the reports

BSystematically incorporating risks identified in the reports into the internal risk assessment

CComparing regulatory reports with peer data

DBuilding or enhancing monitoring scenarios based on reported crime typologies

Answer : B, D

Regulatory reports---such as those published by FATF, FIUs, and supervisory authorities---provide valuable insights into emerging money laundering and terrorist financing risks.

A crucial step is systematically integrating identified risks into the institution's internal risk assessment. This ensures that the organization's understanding of threats remains current and aligned with regulatory expectations.

Another key action is building or enhancing transaction monitoring scenarios based on the typologies and red flags described in regulatory reports. This directly improves detection effectiveness and responsiveness to evolving threats.

While internal benchmarking and peer comparison may be useful, they are not substitutes for directly updating risk assessments and monitoring logic based on regulatory intelligence.

Acams Certified Anti-Money Laundering Specialist v7 CAMS Exam Questions