Acams CAMS Exam Questions Instant Access - No Installation Required

Question 1

Red flags for potential money laundering in real estate include completing luxury real estate purchases. (Select Two.)

Ausing shell companies or trusts for privacy, lax planning, or asset protection.

Bin the names of unrelated thud patties.

Cusing the proceeds from selling a prior property or liquidating investments to make an all-cash purchase

Dusing legal entities and intermediaries to protect the privacy of the purchasers.

Eusing loans backed by cash or certificates of deposit.

Answer : B, D

Question 2

According to the Egmont Group, which benefits do public-private partnerships (PPPs) provide to Financial Intelligence Units (FIUs)? (Select Three.)

AHelping overcome data protection and information sharing limitations

BEnhancing the quality of reporting and additional informational input

CHelping to alleviate the financial cost burden on law enforcement

DHelping to design common approaches and identify desired deliverables

EOffering flexibility, agility, and opportunities to adjust to the ML/TF threat environment

Answer : A, B, E

According to the Egmont Group and CAMS 6th Edition, PPPs benefit FIUs by:

A: ''PPPs help address challenges around data protection and facilitate information sharing between public and private sectors, overcoming common legal barriers.''

B: ''PPPs result in higher-quality reports from the private sector and provide valuable additional informational input for FIUs.''

E: ''These partnerships give FIUs increased flexibility and agility, allowing them to respond dynamically to evolving ML/TF threats.''(CAMS 6th Edition, Egmont Group Guidance on PPPs; Egmont Group, Public-Private Partnerships for FIUs)

CAMS 6th Edition, Public-Private Partnerships

Egmont Group, 'Public-Private Partnerships: FIU Benefits and Considerations'

Question 3

According to Basel Committee guidelines, which level of the organization should determine whether or not to enter business relationships with higher risk customers?

AAccount opening staff

BMiddle management

CSenior management

DFirst-level management

Answer : C

Question 4

Which key metric would provide the most valuable data to the senior management of a financial institution about the effectiveness of its AML controls?

AThe ratio of true positives to false positives generated by the automated monitoring system

BThe number of money laundering alerts generated by the watchlist screening system

CThe number of high-risk customers onboarded each month

DThe number of clients exited for commercial reasons

Answer : A

Question 5

The new KYC lead at a bank is particularly focused on enhancing the risk management component of its KYC program and refers to the Basel Committee's customer due diligence (CDD) principles.

Which of the following describe key improvements to a KYC program established in the Basel Committee's CDD principles? (Select Two.)

AImplementation of a blacklist of correspondent customers with previously detected and investigated suspicious activity

BEnhancement of a customer acceptance policy to more clearly identify high-risk customers

CIncreased frequency of training provided to front office employees

DEnhancement of customer identification procedures to appropriately identify trust, nominee, and fiduciary accounts

Answer : B, D

Question 6

Which of the following is a critical consideration for private sector firms when sharing data and intelligence to combat financial crime?

AThe preference of upper management regarding which teams should participate in the data-sharing initiative

BThe cost of the data-sharing system and whether it its within the existing IT budget

CThe potential return on investment (ROI) from the data shared versus the financial crime prevention effort

DEnsuring that the shared data complies with applicable data protection regulations while maintaining the integrity and accuracy of the information

Answer : D

Question 7

A company is rapidly expanding into several international markets, including jurisdictions considered high risk in terms of regulatory oversight. The board has requested the Money Laundering Reporting Officer (MLRO) to review and adjust the company's anti-financial crime (AFC) compliance framework to align with the evolving regulatory landscape and expansion strategy. During this process, the MLRO identifies vulnerabilities, particularly in markets with AML deficiencies, and updates the framework to mitigate these risks.

Which element of the AFC compliance program does this process describe?

AGovernance arrangements

BTransaction monitoring

CTraining and awareness

DRisk assessment

Answer : D

This scenario describes the risk assessment element of an anti-financial crime (AFC) compliance program. FATF standards require organizations to regularly assess and reassess their money laundering and terrorist financing risks, particularly when there are material changes to business models, geographic exposure, or regulatory environments.

The MLRO's review of the company's expansion into high-risk jurisdictions and identification of vulnerabilities reflects a dynamic and forward-looking risk assessment process. Updating the compliance framework to address identified risks ensures that controls remain proportionate and effective.

Risk assessments form the foundation of the risk-based approach and directly inform decisions on enhanced due diligence, monitoring, governance, and resource allocation. This process is distinct from transaction monitoring, governance arrangements, or training activities, although those elements may be updated as a result of the risk assessment.

Acams Certified Anti-Money Laundering Specialist v7 CAMS Exam Questions