VALID CAMS Exam Dumps For Certification Exam Preparation
CAMS Dumps PDF 2025 Strategy Your Preparation Efficiently
NEW QUESTION # 281
What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)
- A. Physical certificates may be provided to nominees for deposit or settled in off-market transactions
- B. There is little information readily available to the broker confirming the source of the funds
- C. The trade information on a physical certificate can be easily altered
- D. Physical certificates do not expire and may be held by the owner for perpetuity
Answer: A,B
NEW QUESTION # 282
During the course of work on behalf of a client, a lawyer participated in the movement of money. If the lawyer suspects an act of money laundering, which of the following should the lawyer do according to European Union Money Laundering Directives?
- A. Report the facts to the competent authorities.
- B. Adhere to business confidentiality laws.
- C. Follow bank secrecy laws.
- D. Inform the client of the intent to terminate services.
Answer: A
NEW QUESTION # 283
What should a financial institution (FI) do in response to a formal law enforcement request to produce documents?
- A. Keep senior management informed at all times to strategically organize a defense to terminate the law enforcement request.
- B. Designate a person responsible for the internal investigation in preparation of documents for the request.
- C. Ask for an extension to review the Fl's privacy policy and confidentiality policy before providing any information under the law enforcement request.
- D. Verify the officer's identification and ask for the law enforcement request to be served when the Chief Executive Officer is available to sign for it.
Answer: B
Explanation:
According to the CAMS Study Guide (the 6th edition), page 184, when an FI receives a formal law enforcement request to produce documents, such as a subpoena, a search warrant, or a court order, it should designate a person responsible for the internal investigation in preparation of documents for the request. This person should be familiar with the FI's policies and procedures, the applicable laws and regulations, and the nature and scope of the request. The designated person should also coordinate with the FI's legal counsel, compliance officer, and senior management, and ensure that the FI preserves the confidentiality and integrity of the documents and the investigation.
References:
CAMS Study Guide (the 6th edition), page 1841
CAMS Certification Video Training Course, Module 4, Lesson 22
NEW QUESTION # 284
An internal review of anti-money laundering training documentation revealed only new agents employed by a financial institution that sells life insurance products were trained. Additionally, it typically took the institution 8 months to begin training for new actuaries. The compliance officer explained training was limited to actuaries because they perform the only high-risk function. The institution relied on e-learning techniques without follow-up assessment.
Which of the following issues would the internal review most likely recommend?
- A. The institution must provide anti-money laundering training to actuaries within 6 months.
- B. All staff, apart from the Board of Directors, must be trained.
- C. Pro duct-specific anti-money laundering training should be provided company-wide.
- D. Continue using e-learning to emphasize anti-money laundering content during training.
Answer: C
Explanation:
The internal review would most likely recommend that the institution provide product-specific anti-money laundering training to all relevant employees, not just actuaries. This is because life insurance products can be used for money laundering purposes, such as purchasing policies with illicit funds, surrendering policies for cash value, or using policies as collateral for loans. Therefore, all employees who are involved in selling, servicing, or processing life insurance products should be aware of the money laundering risks and red flags associated with these products, and how to report any suspicious activity. The institution should also ensure that the training is timely, effective, and tailored to the specific roles and responsibilities of the employees.
The other options are not as relevant or appropriate as the correct answer. Option A is too broad, as not all staff need to be trained on anti-money laundering, only those who are relevant to the institution's business activities and exposure to money laundering risks. Option C is too narrow, as it only focuses on actuaries and does not address the need for training other employees who may deal with life insurance products. Option D is not sufficient, as e-learning alone may not be effective in ensuring that employees understand and retain the anti-money laundering content, and the institution should also conduct follow-up assessments to measure the impact and outcomes of the training.
References:
* ACAMS Study Guide for the CAMS Certification Examination - 6th Edition, Chapter 3: Compliance Standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), page
57.
* ACAMS CAMS Certification Video Training Course, Module 3: Compliance Standards for Anti- Money Laundering (AML) and Combating the Financing of Terrorism (CFT), Lesson 3.5: Training and Testing.
* Best Practices for Anti-Money Laundering Compliance - DIRO Original, Section 3: Adequate Training.
NEW QUESTION # 285
How does the Financial Action Task Force (FATF) measure the effectiveness of a country's efforts to combat money laundering and terrorist financing?
- A. FATF Evaluation Committee
- B. Basel Committee
- C. Series of internal audits followed by reporting to FATF
- D. Mutual evaluation
Answer: D
Explanation:
The FATF measures the effectiveness of a country's efforts to combat money laundering and terrorist financing through a process known as mutual evaluation. This process involves peer reviews, where experts from other member countries assess the technical compliance and the effectiveness of a country's anti-money laundering and counter-terrorist financing (AML/CTF) framework. The FATF has developed a methodology that identifies 11 key areas, or immediate outcomes, that an effective AML/CTF system should achieve, and uses them as the basis for the mutual evaluation. The FATF publishes the mutual evaluation reports, which provide an in-depth analysis of the strengths and weaknesses of each country's AML/CTF regime, as well as recommendations for improvement.
References:
1: An effective system to combat money laundering and terrorist financing, FATF, February 2013.
2: Report on the State of Effectiveness and Compliance with the FATF Standards, FATF, June 2021.
3: Financial Action Task Force (FATF) | Meaning, Functions, Impact, Finance Strategists, September
2023.
4: FATF Recommendations, FATF, October 2020.
NEW QUESTION # 286
A compliance officer identifies a potentially significant risk in a popular financial product. Further investigation reveals there is no mitigating control.
Which course of action should the compliance officer take?
- A. Note the risk and address it during the next round of policy and procedure review
- B. Launch a long-term project to remediate the control deficiency
- C. Implement a temporary mitigation that enables effective management of the risk until a permanent plan can be developed
- D. Immediately cease providing the product and only offer it after effective permanent mitigation is implemented
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION # 287
How do payable through accounts (PTAs) differ from normal foreign correspondent accounts?
- A. The customers do not have to worry about sanctions list screening such as OFAC
- B. The customers have the ability to directly control funds at the correspondent bank
- C. The customers can hide their identity through the use of cover payments in U.S. dollars
- D. The customers can contact the correspondent bank directly to send wire transfers
Answer: B
NEW QUESTION # 288
Your company recently deployed several hardware devices that contain sensors.
The sensors generate new data on an hourly basis. The data generated is stored on-premises and retained for several years.
During the past two months, the sensors generated 300 GB of data.
You plan to move the data to Azure and then perform advanced analytics on the data.
You need to recommend an Azure storage solution for the data.
Which storage solution should you recommend?
- A. Azure Blob storage
- B. Azure Cosmos DB
- C. Azure Queue storage
- D. Azure SQL Database
Answer: A
Explanation:
Explanation/Reference:
References:
https://docs.microsoft.com/en-us/azure/architecture/data-guide/technology-choices/data-storage
NEW QUESTION # 289
Which two steps should a financial institution take when it receives a law enforcement request to keep an account open that may be associated with suspicious or criminal activity? (Choose two.)
- A. Stop filing suspicious transaction reports because law enforcement will be monitoring the account
- B. Maintain account records for at least five years after the request expires
- C. File a suspicious transaction report on the account owner(s)
- D. Ask for a written request from the law enforcement agency that defines the duration
Answer: C,D
NEW QUESTION # 290
In general, what is an element that a financial institution or business does not have to specifically address in an anti-money laundering program?
- A. An ongoing employee training program
- B. A description of its OFAC program to address government watch list screening
- C. A designated compliance officer with day-to-day oversight over the AML program
- D. A system of internal policies, procedures and controls
Answer: B
Explanation:
According to the Bank Secrecy Act (BSA), a financial institution or business must establish an anti-money laundering (AML) program that includes at least four elements: (a) a system of internal policies, procedures and controls to prevent, detect and report money laundering and other illicit activities; (b) a designated compliance officer who is responsible for overseeing the implementation and effectiveness of the AML program; an ongoing employee training program that covers the legal and regulatory obligations, the risks and red flags of money laundering, and the roles and responsibilities of the staff in the AML program; and (d) an independent audit function that tests and evaluates the adequacy and compliance of the AML program12.
While the Office of Foreign Assets Control (OFAC) is a key agency that enforces economic and trade sanctions against targeted foreign countries, entities and individuals, it is not part of the BSA or the AML program requirements. However, financial institutions and businesses are expected to comply with OFAC regulations and screen their customers and transactions against the OFAC lists of sanctioned parties. Failure to do so may result in civil or criminal penalties34. Therefore, it is advisable for financial institutions and businesses to have an OFAC program that is integrated with their AML program, but it is not a mandatory element that they have to specifically address in their AML program.
References:
1: Financial Crimes Enforcement Network (2020). Anti-Money Laundering Programs
2: ACAMS (2020). CAMS Certification Package (6th Edition)
3: Office of Foreign Assets Control (2023). Sanctions Programs and Country Information
4: Moses & Singer LLP (2023). Anti-Money Laundering, Bank Secrecy and OFAC Regulations
NEW QUESTION # 291
A suspicious transaction report has been filed on an account owned by the wife of the bank's ChiefExecutive Officer. Which of the following is the most important consideration when deciding whether to recommend closing the account?
- A. Requests from the competent authority
- B. The institution's anti-money laundering policy
- C. Customer relations
- D. Chief Executive's reputational risk
Answer: B
Explanation:
The most important consideration when deciding whether to recommend closing the account is the institution's anti-money laundering policy. This is because the policy should provide clear and consistent criteria for account closure decisions, based on the risk assessment, the nature and severity of the suspicious activity, the customer due diligence information, and the legal and regulatory obligations of the institution.
The policy should also ensure that the account closure process is independent, objective, and transparent, and that it does not compromise the confidentiality of the suspicious transaction report or the investigation.
References: =
* ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 5, Section 5.4.2, page 1971
* ACAMS CAMS Certification Video Training Course, Module 5, Lesson 5.4, video time 9:00-10:302
* ACAMS CAMS Certification Practice Exam, Question 145, page 2863
NEW QUESTION # 292
When and how should an institution appraise the AML risk of a newly developed product?
Choose 3 answers
- A. The institution should request the Compliance Officier to review and evaluate the AML riskprior to the product going live
- B. The institution should evaluated where, how and to what extent the product is going to be used
- C. The institution should review previous administrative actions to determine if the product hascreated problems for other institutions
- D. The institution should roll the product out on a preliminary basis to determine what risksdevelop with regard to the product
Answer: A,B,D
NEW QUESTION # 293
You need to design an application that will analyze real-time data from financial feeds.
The data will be ingested into Azure IoT Hub. The data must be processed as quickly as possible in the order in which it is ingested.
Which service should you include in the design?
- A. Azure Stream Analytics
- B. Apache Kafka
- C. Azure Data Factory
- D. Azure Event Hubs
- E. Azure Queue storage
- F. Azure Notification Hubs
Answer: A
Explanation:
Stream processing can be handled by Azure Stream Analytics. Azure Stream Analytics can run perpetual queries against an unbounded stream of data. These queries consume streams of data from storage or message brokers, filter and aggregate the data based on temporal windows, and write the results to sinks such as storage, databases, or directly to reports in Power BI. Stream Analytics uses a SQL-based query language that supports temporal and geospatial constructs, and can be extended using JavaScript.
Incorrect Answers:
E: Apache Kafka is used for ingestion, not for stream processing.
F: Azure Event Hubs is used for ingestion, not for stream processing.
Reference:
https://docs.microsoft.com/en-us/azure/architecture/data-guide/big-data/real-time-processing
NEW QUESTION # 294
Under which two circumstances may law enforcement be given access to a financial institution customer's financial records? (Choose two.)
- A. If law enforcement serves a legal summons or subpoena
- B. If the investigation of a customer is made public in the media
- C. If the person is named in a suspicious transaction report
- D. If law enforcement has circumstantial evidence to suspect money laundering
Answer: A,D
Explanation:
Q Law enforcement may be given access to a financial institution customer's financial records if they serve a legal summons or subpoena, or if they have circumstantial evidence to suspect money laundering. These are two of the exceptions to the general rule that financial institutions must protect the privacy of their customers' financial information under the Right to Financial Privacy Act (RFPA) of 19781. The RFPA also allows access to customer records in other situations, such as with the customer's consent, in response to judicial orders, or for certain intelligence or counterintelligence purposes1.
Option A is incorrect because a suspicious transaction report (STR) does not automatically grant law enforcement access to the customer's financial records. The STR is a confidential document that is filed by the financial institution to the Financial Intelligence Unit (FIU) of the country, and the FIU may decide to share the information with law enforcement if it deems appropriate2. However, law enforcement still needs to follow the RFPA procedures to obtain the customer's records from the financial institution.
Option C is incorrect because the investigation of a customer being made public in the media does not give law enforcement the right to access the customer's financial records. The media exposure may raise the public interest or the urgency of the investigation, but it does not override the RFPA requirements.
Law enforcement still needs to obtain a legal summons, subpoena, or other valid authorization to access the customer's records from the financial institution.
References:
1: Right to Financial Privacy Act of 1978, 12 U.S.C. §§ 3401-3422
2: ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 2: Compliance Standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), p. 47
NEW QUESTION # 295
What do the Financial Action Task Force (FATF) mutual evaluations of each member assess?
- A. The member's ability to send a representative to the plenary sessions
- B. If the member has made any suggestions for updates to the FATF Recommendations
- C. The levels of implementation of the FATF Recommendations
- D. If the member has a large enough economy to maintain its membership
Answer: C
NEW QUESTION # 296
A non-U.S. bank wants to open an account at Bank A, which is a U.S.-based bank.
Which information must Bank A obtain under the USA PATRIOT Act?
- A. The structure and identity of the management team at the non-U.S. bank
- B. The details of the non-U.S. bank's anti-money laundering compliance training program
- C. A complete client list from the non-U.S. bank
- D. The identity of owners and percentage of ownership of the non-U.S. bank
Answer: D
Explanation:
Section 313 of the USA PATRIOT Act prohibits U.S. financial institutions from establishing, maintaining, administrating or managing correspondent accounts for foreign shell banks. A foreign shell bank is a foreign bank that does not have a physical presence in any country. To ensure compliance with this prohibition, U.S.
financial institutions must obtain from each foreign bank that maintains a correspondent account the identity of each owner of the foreign bank and the nature and extent of each owner's ownership interest. This information must be updated within 30 days of any change.
References:
USA PATRIOT Act | FinCEN.gov, Section 313
US PATRIOT ACT | State Street
NEW QUESTION # 297
Can trading in antiques be useful for money laundering?
- A. Yes, because cash is often physically hidden within the antiques themselves.
- B. No, because the antiques market is rather small and unusual transactions would draw attention.
- C. Yes, because antiques can be of high value and often easily transported.
- D. No, because antique sales and purchases are highly regulated worldwide.
Answer: C
NEW QUESTION # 298
What are two requirements of United States financial institutions when conducting business with an international institution as a result of the USA PATRIOT Act? (Choose two.)
- A. Performing due diligence on correspondent accounts
- B. Performing enhanced due diligence on shell banks
- C. Visiting the head office of the international financial institution
- D. Complying with Special Measures issued under the USA PATRIOT Act
Answer: A,B
Explanation:
The USA PATRIOT Act imposes several requirements on U.S. financial institutions when dealing with foreign financial institutions, especially those that pose a high risk of money laundering or terrorist financing.
Two of these requirements are:
Performing enhanced due diligence on shell banks: A shell bank is a bank that has no physical presence in any country and is not affiliated with a regulated financial group. The USA PATRIOT Act prohibits
U.S. financial institutions from opening or maintaining correspondent accounts for shell banks, and requires them to take reasonable steps to ensure that their correspondent accounts are not being used by shell banks indirectly12.
Performing due diligence on correspondent accounts: A correspondent account is an account established by a financial institution to receive deposits from, make payments on behalf of, or handle other financial transactions for a foreign financial institution. The USA PATRIOT Act requires U.S. financial institutions to collect and verify certain information about the foreign financial institution, such as its ownership, licensing, and anti-money laundering policies, and to assess the risk of money laundering or terrorist financing associated with the correspondent account13.
References:
CAMS Certification Package - 6th Edition | ACAMS, Chapter 3: Compliance Standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), pages 82-84 CAMS Certifications: How to Get CAMS Certified | ACAMS, Candidate Handbook, page 14 ACAMS CAMS Certification Video Training Course - Exam-Labs, Video 3.4: Correspondent Banking and Money Laundering Risks
NEW QUESTION # 299
A financial institution (FI) has decided to revamp its compliance program to be more risk-based. Which option should the FI use as part of the new risk-based compliance program?
- A. Data-based
- B. Predictive-based
- C. Leadership-based
- D. Transaction-based
Answer: D
NEW QUESTION # 300
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history.
When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale.
Which of the following should the compliance officer do next?
- A. Investigate these unusual transactions further.
- B. Document reasons for not filing a suspicious transaction report.
- C. Contact the local Financial Intelligence Unit for advice.
- D. File a suspicious transaction report with the competent authorities.
Answer: D
NEW QUESTION # 301
Which of the following provides anti-money laundering specialists information related to money laundering trends?
1. Egmont Group's 100 Cases
2. Financial Action Task Force Typologies
3. FinCEN's SAR Activity Review
4. The Wolfsberg Principles
- A. 1, 2, and 4 only
- B. 1, 3, and 4 only
- C. 1, 2, and 3 only
- D. 2, 3, and 4 only
Answer: B
NEW QUESTION # 302
Which customer transaction with a securities dealer would indicate the highest supicion of money laundering?
- A. Recurring transfers of money into a brokerage account subsequently invested in shourt-term securties
- B. Frequent trades in unlisted securities throughour the day on a regular basis
- C. Investment iin securities with a significantly lower risk than the customer's expressed risktolerance
- D. A high level of account activity with very low levels of securities transactions
Answer: D
NEW QUESTION # 303
Which scenario best justifies why a customer's account might be closed by a financial institution?
- A. The customer is the object of a civil subpoena.
- B. The customer uses a shipping company dealing with specially designated nationals.
- C. The account has transactions that triggered multiple suspicious activity reports.
- D. The account shows periodic fixed amount remittances for tuition fees.
Answer: C
Explanation:
Financial institutions closely monitor customer accounts for suspicious activity related to money laundering, terrorist financing, or other illicit activities. If an account consistently triggers multiple suspicious activity reports (SARs), it raises red flags. These reports indicate unusual or potentially illegal transactions, such as large cash deposits, frequent transfers to high-risk jurisdictions, or patterns inconsistent with the customer's profile. To mitigate risk and comply with anti-money laundering (AML) regulations, the financial institution may decide to close the account. Regular SAR filings are essential for maintaining the integrity of the financial system and preventing illicit financial flows12.
References:
1. ACAMS: Suspicious Activity Reports (SARs)
2. MoneyLaundering.com: Suspicious Activity Reports
NEW QUESTION # 304
......
Latest Verified & Correct CAMS Questions: https://www.practicedump.com/CAMS_actualtests.html
100% Pass Guaranteed Download CAMS Certification Exam PDF Q&A: https://drive.google.com/open?id=1z3X_tzT5RRUjqi-0epT0gZwjhQi8gm48