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Acams CAMS Exam Questions

Acams CAMS Exam Questions Answers

Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition)

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Acams CAMS Practice Test Questions ( Updated) – Real Exam Questions & Dumps PDF

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Acams CAMS Sample Questions – Free Practice Test & Real Exam Prep

Question #1

Potential risk indicators for a trade counterparty in trade-based money laundering include: (Select Three.) 

  • A. Irregular or inconsistent trade volume and frequency that does not align with the historical trading behavior of the counterparty 
  • B. Contracts, invoices, or other trade documents containing detailed descriptions of the traded commodities 
  • C. Cash deposits or other transactions consistently below the relevant reporting thresholds 
  • D. Engaging in transactions and shipping routes or methods that are not in line with standard business practices
  • E. Transparent pricing structures with additional information provided to the receiving bank when pricing fluctuates by ±10%
Answer: A,C,D
Question #2

Which of the following are common indicators of possible money laundering within the securities industry? (Select Two.)

  • A. Receiving securities into an existing brokerage account following the death of a spouse
  • B. Allowing fixed income securities to mature
  • C. Using brokerage accounts like deposit accounts
  • D. Engaging in transactions involving nominees or third parties
Answer: C,D 
Question #3

Which of the following statements is true regarding the 2012 Financial Action Task Force (FATF) 40 Recommendations and'or 11 Immediate Outcomes?

  • A. The 40 Recommendations have not been updated to reflect the impact of newtechnology
  • B. Each jurisdiction can reach out to the FATF for private access to the interpretive notes tothe 40 Recommendations
  • C. The 11 Immediate Outcomes are recommendations specific to high-risk jurisdictionsrequiring enhanced monitoring.
  • D. The cornerstone of the 40 Recommendations is the adoption of a risk-based approachby each jurisdiction 
Answer: D 
Question #4

A multinational corporation is considering expanding into a new market with a history of political instability and corruption. Which strategy would be most effective in mitigating reputational risk from a financial crime perspective associated with such an expansion? 

  • A. Ensure the jurisdiction risks and other relevant factors have been taken into consideration in the EWRA and the residual risks are within the corporation's risk appetite 
  • B. Partnering with established local businesses to leverage their knowledge and connections while sharing risks 
  • C. Ensuring the company has strong ties with local government officials to influence policy and avoid negative scrutiny 
  • D. Committing to open communication, ethical practices, and community engagement to build trust with stakeholders 
  • E. Minimizing the company's direct presence in the country to reduce exposure to potential risks 
Answer: A
Question #5

The Money Laundering Reporting Officer (MLRO) of a life insurance company isreviewing the product risk assessment methodology.Which of the following attributes of life insurance products would be attributed ahigher risk rating? (Select Three.)

  • A. Annuity products with a deferred income stream
  • B. Products that allow the option to change the nominated beneficiary after thecommencement of the policy
  • C. Products with international health insurance coverage
  • D. Products that allow for a cash surrender value
  • E. Products that restrict the transfer of funds from one policy to another 
Answer: B,C,D 
Question #6

Which techniques are most commonly used in a rules-based approach to transaction monitoring for detecting suspicious activities? (Choose two.)

  • A. Using predefined rules to flag specific transaction patterns 
  • B. Randomly flagging transactions for further investigation 
  • C. Statistical tuning of monitoring scenarios to improve accuracy 
  • D. Using advanced machine learning models to detect outliers 
  • E. Setting transaction thresholds for automated alerts 
Answer: A,E 
Question #7

Money services businesses (MSBs), payment service providers, and e-commerce platforms usually have a high volume of daily transactions. What are the risks associated with these types of businesses? (Choose two.)

  • A. These businesses are all cash intensive, increasing the risk of financial crime
  • B. KYC challenges arise because e-commerce platforms face global customers makingcustomer due diligence complex and resource intensive
  • C. These businesses are highly regulated and therefore have no reason to be noncompliant as this would put them at risk of sanctions and fines
  • D. Criminals can make use of identify fraud to fulfill KYC processes for layering purposes
  • E. The settlement systems of these businesses are not sophisticated enough to cope withthe high transaction volume 
Answer: B,D 
Question #8

The chief compliance officer (CCO) at a bank approved offering trade finance services to acompany which is established within a country with a weak democratic system routinelyreviews news on upcoming targeted economic sanction regulations in the EU, a majorimport partner for the country's production of crude oil.Which of the following pieces of news would be of greatest concern?

  • A. The European Commission and the High Representative issue a joint proposal for animport ban on refined oil products.
  • B. The European Commission and the High Representative issue a joint proposal for animport ban on oil extraction equipment
  • C. The Council of the European Union adopts a new export control regime for electronicequipment
  • D. The Council of the European Union adopts a new import restriction regime for goodscoming from countries that do not respect human rights 
Answer: A 
Question #9

Which o! the following are considered best practices regarding senior management involvement in a financial crime compliance program? (Select Two.)

  • A. Mandatory participation in all regulatory inspections
  • B. Mandatory attendance and review of alt financial crime trainings 
  • C. Setting clear criteria for escalations to senior management 
  • D. Setting tone from the top 
Answer: C,D
Question #10

Professional service providers—including lawyers, accountants, investmentbrokers, and other third parties—may abuse their positions to facilitate moneylaundering.Which financial crime risks are associated with this type of abuse? (Select Three.)

  • A. Opening an account to settle an estate on behalf of a client
  • B. Establishing shell companies to enable money laundering activities, including placementor layering
  • C. Opening third-party accounts for the primary purpose of masking the underlying client’sidentity
  • D. Opening a trust account to facilitate a legitimate real estate transaction
  • E. Directing or facilitating the laundering of illicit funds, including structuring transactions 
Answer: B,C,E 
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