Latest [Aug 14, 2024] 100% Passing Guarantee - Brilliant CAMS Exam Questions PDF
CAMS Certification – Valid Exam Dumps Questions Study Guide! (Updated 617 Questions)
The CAMS certification is designed to equip professionals with the necessary knowledge and skills to detect and prevent money laundering activities. CAMS exam covers various topics, including AML regulations, risk assessment, customer due diligence, suspicious activity reporting, and sanctions compliance. Certified Anti-Money Laundering Specialists certification is recognized by regulatory bodies, including the Financial Crimes Enforcement Network (FinCEN), and is highly valued by employers in the financial services industry.
The Certified Anti-Money Laundering Specialists (CAMS) certification is recognized as the gold standard in AML certifications. AML professionals who earn the CAMS certification demonstrate their expertise in anti-money laundering detection, prevention, and enforcement. The CAMS certification is offered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), a leading international organization dedicated to fighting financial crime.
NEW QUESTION # 36
A bank sells reloadable open-loop prepaid cards to both customers and non-customers.
What is a red flag associated with these cards that may indicate money laundering?
- A. A non-bank customer regularly loads large amounts of cash onto several prepaid cards.
- B. A bank customer historically purchases several prepaid cards near year-end.
- C. A bank customer routinely purchases five prepaid cards in small even-dollar amounts on a monthly basis.
- D. A non-bank customer consistently uses the bank to obtain cash advances using a prepaid card.
Answer: A
NEW QUESTION # 37
Based on the USA PATRIOT Act, what action might the US take to demonstrate extraterritorial reach?
- A. Hand over potential penalties from the US to another government
- B. Send requests for information to a non-US based financial institution (FI)
- C. Freeze U. S. accounts that contain funds from the non-US FI
- D. Initiate a lawsuit in the home country of the non-US FI
Answer: B
NEW QUESTION # 38
What can a compliance officer do in the absence of automated software to conduct U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanction screens?
- A. Rely on a credit report from OFAC
- B. Use the consolidated Sanctions List Search screen on the OFAC website
- C. Conduct a key-word search on the Internet
- D. Obtain up-to-date copies of the OFAC's Specially Designated Nationals list
Answer: D
Explanation:
As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs." Their assets are blocked and U.S. persons are generally prohibited from dealing with them. So it's covering all
NEW QUESTION # 39
What are three indicators of money laundering associated with using electronic funds transfers? Choose 3 answers
- A. Funds transfers to or from a financial secrecy haven without an apparent business reason
- B. Funds transfers are received or sent from the same person to or from different accounts
- C. Regular and frequent transfers from the account of a large company said to be payment for goods bought on credit
- D. Payment or receipts with no apparent link to legitimate contracts, goods or services
Answer: A,B,D
NEW QUESTION # 40
Which is a key aspect in the FATF Recommendations that best describes the essential foundation for allocating resources in AML/CFT regimes for countries and financial institutions (FIs)?
- A. Enforcing mutual legal assistance
- B. Applying a risk-based approach
- C. Performing country peer-to-peer evaluations
- D. Implementing targeted financial sanctions
Answer: B
Explanation:
The risk-based approach (RBA) is an essential foundation of the FATF Recommendations, as it allows countries, competent authorities and financial institutions to adopt a more flexible set of measures to target their resources more effectively and apply preventive measures that are commensurate to the nature of risks, in order to focus their efforts in the most effective way. The RBA is not optional, but a prerequisite for the effective implementation of the FATF Standards. The RBA requires the identification, assessment and understanding of the ML/TF risks to which the countries and FIs are exposed, and the implementation of AML/CFT measures that are proportionate and tailored to those risks. The RBA is not a "zero failure" approach, but a way to mitigate the risks in the most efficient and effective manner.
References:
FATF Recommendations, Introduction, page 11
FATF Guidance on the Risk-Based Approach to Combating Money Laundering and Terrorist Financing
- High Level Principles and Procedures, page 3
Risk-based Approach (RBA), What is the Risk-based Approach (RBA)?
NEW QUESTION # 41
What is suspicious activity or red flag with regard to a customer's activity? Choose 3 answers
- A. Paying the tellers he deals with a regular gratuity
- B. Asking about the bank's fee schedule for a series of transactions
- C. Exchanging small denomination bills for large ones
- D. Engaging in wiretransactionswith an offshore account
Answer: A,C,D
NEW QUESTION # 42
A corporate services provider in a European Union (EU) country has a prospect from an African country who deals in oil and gas. The prospect intends to develop an oil terminal in his home country with a $75 million dollar loan secured by a third party, which is a trust formed in a Caribbean island with a holding company based in a European secrecy haven. A young lady is presented as an ultimate beneficial owner who has gained her wealth through a fitness studio in her home country.
What are two red flags that could indicate money laundering or financing terrorism? (Choose two.)
- A. A loan worth $75 million with a third-party guarantor
- B. The prospect wishes to have a corporate structure with a holding company in EU country
- C. The guarantor company's ownership structure is overly complex
- D. The ultimate beneficial owner is young lady who has gained her wealth through a small business
Answer: C,D
NEW QUESTION # 43
In which three situations is correspondent banking most vulnerable to money laundering? Choose 3 answers
- A. When allowing the correspondent bank account to be used as a payable through account (PTA)
- B. When allowing foreign banks to use the correspondent account to conduct large financial transactions on behalf of their customers
- C. When allowing financial institutions, without proper due diligence, to access correspondent network for routing their financial transactions
- D. When allowing the correspondent bank account to be used by other banks
Answer: A,D
NEW QUESTION # 44
A commission regotorie would be used in which gateway to obtain information from another country?
- A. An FIU request under the Egmont principles
- B. A supervisory channel request with the Basel Committee
- C. An MLAT request
- D. A FATF request
Answer: A
NEW QUESTION # 45
Your company develops an API application that is orchestrated by using Kubernetes.
You need to deploy the application.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
- A. Create a container image file.
- B. Create a Kubernetes cluster.
- C. Create an Azure Container Registry instance.
- D. Create an Azure container instance.
- E. Create a Web App for Containers.
Answer: A,B,C
Explanation:
Explanation/Reference:
References:
https://docs.microsoft.com/en-us/azure/aks/tutorial-kubernetes-prepare-app
NEW QUESTION # 46
What is a criterion for FATF membership?
- A. The country should have already implemented all of the FATF Recommendations
- B. The country should have already implemented the standards of the European Union Directives
- C. The country should be a member of a FATF-style regional body
- D. The country should be democracy
Answer: C
NEW QUESTION # 47
Which of the following represents the first Financial Action Task Force initiative?
- A. The Special Recommendations on Terrorist Financing
- B. The Report on Non-Cooperative Countries and Territories
- C. The Report on Money Laundering Typologies
- D. The 40 Recommendations on Money Laundering
Answer: A
NEW QUESTION # 48
A financial institution is reorganizing and the anti-money laundering officer is now required to report to the Head of Operations?
- A. The reorganization will enhance the compliance framework
- B. The anti-money laundering officer should be independent of business functions
- C. The anti-money laundering officer should be elevated to a position on the Board of Directors
- D. The reorganization will ensure communication of anti-money laundering issues to the Board of Directors
Answer: B
NEW QUESTION # 49
What correspondent banking risk factor increases the risk for a Correspondent Bank?
- A. Multi-national financial institution with global operations
- B. Offers international funds transfer to customers
- C. Major service provider to money service businesses
- D. Limited product offering to customers in high-risk jurisdictions
Answer: C
Explanation:
Reference:
https://www.fatf-gafi.org/media/fatf/documents/reports/Guidance-Correspondent-Banking-Services.pdf
NEW QUESTION # 50
A financial institution receives a regulatory enforcement action because of deficiencies in its anti-money laundering program.
Which action should the board of directors take?
- A. Purchase and install a new suspicious activity monitoring system
- B. Hire an attorney with instructions to protest the enforcement action
- C. Terminate the compliance officer and staff
- D. Instruct the compliance officer to develop a plan to remediate the institution's anti-money laundering program
Answer: D
Explanation:
The board of directors is ultimately responsible for ensuring that the financial institution has an effective anti-money laundering program that complies with the applicable laws and regulations. If the institution receives a regulatory enforcement action, the board should take prompt and corrective actions to address the deficiencies and mitigate the risks of further violations or penalties. One of the most important actions is to instruct the compliance officer to develop a plan to remediate the institution's anti-money laundering program, which should include a root cause analysis, a gap assessment, a timeline, and a budget. The board should also monitor the implementation and progress of the remediation plan, and communicate with the regulators on a regular basis.
The other options are not appropriate actions for the board of directors to take in response to a regulatory enforcement action. Terminating the compliance officer and staff may not solve the underlying issues of the anti-money laundering program, and may create more disruption and instability. Purchasing and installing a new suspicious activity monitoring system may not be necessary or sufficient to address the deficiencies, and may entail additional costs and challenges. Hiring an attorney to protest the enforcement action may not be in the best interest of the institution, and may antagonize the regulators and escalate the situation.
References:
CAMS Certification Package - 6th Edition | ACAMS, Chapter 5: Risk Management, Section 5.2:
Regulatory Examinations and Enforcement Actions, pp. 171-174.
CAMS Certifications: How to Get CAMS Certified | ACAMS, CAMS Examination Preparation Guide, Section 3: Regulatory Compliance, pp. 23-24.
NEW QUESTION # 51
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 # 52
A suspicious transaction report has been filed on an account owned by the wife of the bank's Chief Executive 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: C
NEW QUESTION # 53
A bank account is established for a new business customer. The business was established five years ago with an address in another state. The business website contains few details other than stating it is a real estate business.
One principal has an international telephone number and appears to be living in another country. The other principal works out of a recreational vehicle.
What warrants enhanced due diligence in this scenario?
- A. Human trafficker
- B. Shell company
- C. Politically exposed person
- D. Money laundering through real estate
Answer: B
NEW QUESTION # 54
Trusts established in certain offshore jurisdictions make good vehicles to lay under money for which ofthe following reasons?
- A. Offshore jurisdictions are unfamiliar with trust.
- B. Trusts are typically set up to minimize taxes.
- C. Names of the settlor and beneficiaries are into publicly available.
- D. Trusts may hold assets of significant size.
Answer: C
Explanation:
it describes a reason why trusts established in certain offshore jurisdictions make good vehicles to layer money, which is names of the settlor and beneficiaries are not publicly available. This means that the true owners and controllers of the funds or assets held by the trust are hidden from the public and the authorities, and can only be accessed by the trustee or the protector, who may be complicit or unaware of the money laundering scheme. This creates a high level of anonymity and secrecy for the money launderers, who can use the trust to move, disguise, or conceal the origin and destination of their illicit funds.
The other options are not necessarily reasons why trusts established in certain offshore jurisdictions make good vehicles to layer money, although they may have some advantages or disadvantages depending on the circumstances and the risk profile of the customers and countries involved. Option B describes a possible motive for setting up a trust in an offshore jurisdiction, which is to minimize taxes, but this does not imply that the trust is used to layer money, as there may be legitimate tax planning or optimization purposes. Option C describes a possible challenge or obstacle for setting up a trust in an offshore jurisdiction, which is offshore jurisdictions are unfamiliar with trust, but this does not imply that the trust is used to layer money, as there may be other legal or financial vehicles available in those jurisdictions. Option D describes a possible characteristic or feature of a trust, which is trusts may hold assets of significant size, but this does not imply that the trust is used to layer money, as there may be valid reasons or sources for the large assets.
References:
ACAMS CAMS Certification Video Training Course - 6th Edition1
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)2 ACAMS CAMS Study Guide - 6th Edition, Chapter 4, pages 86-87
https://www.acams.org/wp-content/uploads/2019/09/ACAMS-CAMS-Study-Guide-6th-Edition-Chapter-4.pdf
NEW QUESTION # 55
You need to design the Butler chatbot solution to meet the technical requirements.
What is the best channel and pricing tier to use? More than one answer choice may achieve the goal. Select the BEST answer.
- A. Standard channels that use the Free pricing tier
- B. Premium channels that use the S1 pricing tier
- C. Premium channels that use the Free pricing tier
- D. Standard channels that use the S1 pricing tier
Answer: B
Explanation:
Explanation/Reference:
References:
https://azure.microsoft.com/en-in/pricing/details/bot-service/
NEW QUESTION # 56
A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, had totaled about as much as the customer intended to deposit. What should the junior account manager do?
- A. Notify the anti-money laundering specialist of his bank, but do not call the customer
- B. Offer the customer a more secure method of depositing in the hope of learning something more during the conversation
- C. File a suspicious transaction report with the Financial Intelligence Unit
- D. Close the account
Answer: C
NEW QUESTION # 57
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The CAMS certification exam is an essential credential for professionals in the AML industry. With the increase in global regulations and the growing threat of financial crime, the CAMS certification is becoming more valuable and necessary for AML professionals to advance in their careers and make a positive impact in the financial industry.
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