Acams CAMS Exam Questions Instant Access - No Installation Required

Question 1

Which of the following statements is true regarding tipping off?

ATipping off is an obligation only applied to AFC professionals and bank staff because they are required to file a Suspicious Activity Report (SAR).

BTipping off is a criminal act whereby confidential information about a financial crime investigation is disclosed in an unauthorized manner to a third party who may be the subject of the investigation or able to prejudice it.

CTipping off is not committed when detailed inquiries are made with a customer whose transactions have been flagged by a transaction monitoring system.

DWhen an unusual transaction is detected, an AFC professional can instruct the relationship manager to communicate with the customer to decide whether a SAR should be filed.

Answer : B

''Tipping off'' is a serious offense under AML/CFT legislation in many jurisdictions and is consistently addressed in FATF standards. It occurs when confidential information relating to a suspicious transaction, SAR, or ongoing investigation is disclosed without authorization to a person who is the subject of the report or whose knowledge could compromise the investigation.

Such disclosures may alert criminals, allowing them to conceal evidence, move funds, or evade law enforcement. For this reason, tipping off is typically a criminal offense, not merely a breach of internal policy.

The prohibition applies broadly---not only to AFC professionals but to anyone with access to sensitive AML information. Making detailed or targeted inquiries with a customer after a transaction has been flagged can constitute tipping off if it reveals suspicion or investigative activity. Relationship managers must be carefully controlled and should not be instructed to probe customers in a way that signals suspicion.

Therefore, the correct statement is that tipping off is an unauthorized disclosure that can prejudice an investigation.

Question 2

Which of the following statements best describes the financial crime risk associated with gatekeepers?

AGatekeepers have specialized knowledge that can be abused to facilitate the movement of illicit funds and conceal the Involvement of their clients in illicit schemes.

BGatekeeper positions ate of a secretive nature, often making it difficult to verify (heir source of wealth.

CGatekeepers have unique relationship structures, making it difficult to determine beneficial ownership

DGatekeepers are entrusted with prominent functions and code of conduct that can assist laundering Illicit funds.

Answer : A

Question 3

What are the key anti-financial crime (AFC) regulatory bodies in the United States and the European Union and their respective roles?

AThe US Federal Reserve and the European Central Bank oversee money laundering and sanctions

BFinCEN and ESMA issue sanctions and combat money laundering

CThe SEC and the EBA are the main bodies enforcing AML and sanctions

DThe Office of Foreign Assets Control (OFAC) enforces US sanctions, while FinCEN focuses on money laundering. In the EU, the European Commission sets AML/CFT regulations, with enforcement by member states coordinated by the AML Authority

Answer : D

In the United States, anti-financial crime responsibilities are divided between specialized authorities. The Financial Crimes Enforcement Network (FinCEN) administers and enforces the Bank Secrecy Act (BSA) and focuses on anti-money laundering and counter-terrorist financing. The Office of Foreign Assets Control (OFAC) administers and enforces US economic and trade sanctions.

In the European Union, the European Commission is responsible for proposing AML/CFT legislation, such as the AML Directives and the AML Regulation. Enforcement is carried out by individual EU member states through national supervisory and law enforcement authorities, with coordination increasingly provided by the EU Anti-Money Laundering Authority (AMLA).

Other bodies such as the EBA and ESMA play supporting supervisory or standard-setting roles but are not the primary sanctions authorities.

Question 4

One of the basic elements of an effective AML/CFT compliance program is:

AA system of enterprise risk management

BAn artificial intelligence-based transaction monitoring system

CAn independent and skilled audit function

DAn artificial intelligence-based enhanced due diligence system

Answer : C

An effective AML/CFT compliance program must include several core elements outlined in FATF recommendations and national regulations. One of these essential elements is an independent and skilled audit function.

The purpose of independent audit is to test and validate the effectiveness of AML controls, identify weaknesses, and ensure compliance with regulatory requirements. Audits must be conducted by qualified personnel who are independent from the day-to-day AML operations to maintain objectivity.

While enterprise risk management frameworks and advanced technologies such as AI can enhance AML programs, they are not mandatory foundational elements. Regulators focus on governance, oversight, and accountability rather than technology sophistication.

An independent audit function ensures continuous improvement and provides assurance to senior management and regulators that the AML program is operating effectively.

Question 5

Which should be provided to the board of directors or designated specialized committee when preparing suspicious activity reports (SARs)?

AStatistical data regarding SARs filed during the reported period

BAll possible details of SARs filed during the reported period

CCopies of all SARs filed during the reported period

DNames of all customers subject to SARs filed during the reported period

Answer : A

Question 6

A real estate buyer purchases multiple high-value properties in cash through a series of transactions in a short period of time and without any clear economic justification.

Which of the following is the most likely money laundering risk associated with this behavior in the real estate sector?

AThe buyer is using high-value real estate transactions to obscure the origin of the funds.

BThe buyer is quickly diversifying their investment portfolio through structuring payments in order to take advantage of the liquidity of cash transactions in real estate.

CThe buyer is capitalizing on favorable market conditions and using cash purchases to outbid competitors in a competitive real estate market using insider information.

DThe buyer is a real estate developer acquiring multiple properties for a potential redevelopment project with a business partner located in a high-risk jurisdiction.

Answer : A

A: The purchase of high-value real estate using cash in multiple transactions---especially without clear economic justification---is a classic money laundering typology. The goal is typically to integrate illicit funds into the legitimate economy and obscure their origin.

''Large cash purchases of property without an obvious economic rationale are a significant red flag for money laundering in the real estate sector.''

This typology is highlighted in CAMS 6th Edition and the FATF's guidance on real estate ML/TF risks.

CAMS 6th Edition, Real Estate and ML Typologies

FATF, Money Laundering and Terrorist Financing through the Real Estate Sector

Question 7

The US Department of the Treasury notes that which of the following represent high money laundering risk when de-risked from traditional financial institutions (FIs)? (Choose two.)

AMoney services business (MSB)

BMultinational corporations

CIndividual foreign customers

DNon-profit organizations with international operations

Answer : A, D

The US Department of the Treasury identifies money services businesses (MSBs) and non-profit organizations with international operations as high money laundering risks when they lose access to traditional financial institutions, as this can push them toward less regulated channels that are more vulnerable to abuse.

Acams Certified Anti-Money Laundering Specialist v7 CAMS Exam Questions