Acams CAMS Exam Practice Test Instant Access

Question 1

Which of the following are benefits of the latest KYC solutions, including but not limited to digital onboarding, eKYC, digital identity, facial recognition, liveness checks, biometrics, and geolocation? (Choose three.)

AGuaranteeing 100% accuracy in regulatory compliance across all jurisdictions

BImproving customer satisfaction by offering personalized recommendations

CReducing identity theft effectively

DProviding reliable customer authentication to enhance trust

EDecreasing the time required for customer authentication

Answer : C, D, E

Modern KYC solutions help reduce identity theft, provide reliable customer authentication to build trust, and shorten authentication times, enhancing both security and efficiency in customer onboarding and ongoing due diligence processes.

Question 2

Which of the following are considered best practices regarding senior management involvement in a financial crime compliance program? (Choose two.)

ASetting tone from the top

BMandatory participation in all regulatory inspections

CMandatory attendance and review of all financial crime trainings

DSetting clear criteria for escalations to senior management

Answer : A, D

Best practices for senior management involvement include setting the tone from the top to promote a strong compliance culture and establishing clear criteria for escalations, ensuring that significant financial crime issues are promptly brought to their attention for action.

Question 3

Perpetual KYC includes: (Choose two.)

Atriggers identifying static data changes and data based on client's behaviors in real time.

Bperiodic refreshing at one-, three- and five-year cycles.

Cability to prioritize better based on client data rather than driven by schedules alone.

Dclassification of clients into categories of risk.

Answer : A, C

Perpetual KYC (pKYC) involves real-time monitoring of data triggers, such as static changes or behavioral anomalies, and prioritization based on client-specific data rather than fixed refresh schedules. This dynamic approach enhances risk management by responding more quickly to changes in client risk profiles.

Question 4

Which of the following best describes the degree of cooperation between regulatory authorities, law enforcement agencies, and Financial Intelligence Units (FIUs) during money laundering investigations, including cross-border cases?

ARegulatory authorities primarily work independently but share information when requested by international law enforcement agencies.

BFIUs primarily handle reporting from financial institutions, while regulatory authorities and law enforcement agencies are limited to enforcing domestic AML laws without international cooperation.

CLaw enforcement agencies and FIUs only cooperate during domestic investigations, leaving cross-border investigations to international organizations like INTERPOL.

DRegulatory authorities, law enforcement agencies, and FIUs share intelligence and coordinate efforts to streamline cross-border money laundering investigations, often through formal agreements.

Answer : D

D: ''Cooperation and coordination between regulatory authorities, law enforcement agencies, and FIUs are essential for effective AML investigations, especially in cross-border cases. This is often accomplished through formal agreements, MOUs, and information-sharing mechanisms.''(CAMS 6th Edition, International Cooperation in AML/CFT; FATF Recommendations 36-40)

CAMS 6th Edition, International Cooperation

FATF Recommendations 36-40

Question 5

In which of the following situations would it be most crucial for the designated AML compliance officer of a company to perform a complete review of the company's AML program, including identifying the risks and commensurate controls?

AAn external audit highlights several deficiencies

BThe company is merging with or acquiring another entity

CExtensive AML legislation is proposed by a legislative body in the company's jurisdiction

DA high-profile money laundering case involving another industry is publicized

Answer : B

Question 6

Which techniques would be most efficient for a complex investigation of unusual patterns of activity involving multiple businesses, triggered by an automated monitoring system alert? (Select Two.)

APerform a control and ownership assessment of the businesses involved, using the information available in the client files

BContact local law enforcement and request that they assist in the analysis and investigation

CReview the information presented in the automated monitoring system's alert description and decline any future transactions

DContact the account manager and ask for the reasons behind the patterns of activity highlighted in the AML alerts

EUse social media platforms to connect with the businesses and request details about the account activity

Answer : A, D

Question 7

The transaction monitoring system of a bank generated an alert for a car wash client. After making large cash deposits, the client orders international wire transfers.

Which additional circumstances would make the case more suspicious?

AThe beneficiary of the wire transfers is a foreign company whose shareholders and director are other companies

BThe wire transfers are for different amounts but with the same beneficiary

CThe beneficiary of the wire transfer is a resident of a grey-list country

DThe beneficiary of the wire transfers is a resident of a foreign country bearing the same family name as the business owner

Answer : A

The suspicion increases when the beneficiary is a foreign company whose shareholders and director are other companies, as this can indicate the use of layered corporate structures to obscure the ultimate beneficial owner and conceal illicit fund flows.

Acams Certified Anti-Money Laundering Specialist v7 CAMS Exam Practice Test