CAMS Online Practice Questions and Answers

What was the topic the Wolfsberg Group's first guidance addressed?

A. Enhanced due diligence for high risk customers

B. Private banking

C. AML training for financial institutionstaff

D. Merchant acquiring activities

How should a financial institution respond to a verbal request from a law enforcement agency to keep an account open to assist in an investigation?

A. Agree to keep the account open

B. Request a subpoena to maintain the account

C. Request a letter on the agency's letterhead

D. Request a search warrant from the local court

A comprehensive set of risk-based guidelines for maintaining business relationships is being developed. Which situation indicates that the institution should terminate the relationship with a client?

A. The client does business in countries with active terrorist organizations.

B. The client conducts international financial transactions exceeding U.S. $500 million.

C. The client exceeds the criteria of an acceptable risk model created by another institution that is not similar in size and complexity.

D. The client exceeds the criteria of an acceptable risk model created by the institution and does not perform acceptable remedial actions.

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

Which three stages of money laundering are on-line banking vulnerable to?

A. Placement

B. Layering

C. Integration

D. Structuring

An anti-money laundering specialist notes a significant reduction in suspicious transaction report filings at a particular branch. Which of the following actions is most appropriate?

A. Place the branch on the watchlist to assure a review during the next quarter.

B. Analyze the branch activity reports to determine whether there has been a decrease in branch activity.

C. Review branch exception reports to determine changes in activity in accordance with customer profiles.

D. Review staff records to see whether inexperienced personnel are in critical positions without appropriate training.

Which is a goal of Financial Action Task Force Regional-Style Bodies?

A. Executing sound AML processes in response to recommendations

B. Enforcing local AML laws and regulations

C. Analyzing new or developing methods in which criminals or terrorists abuse the financial system in their region

D. Setting standards to assess whether members have an adequate AML regime

A compliance officer is reviewing transactions related to a company suspected of being involved in wildlife trafficking. Which of activities below are common in wildlife trafficking schemes? (Select Two.)

A. Large dollar wire transfers between wildlife farms and firms operating in inconsistent lines of business

B. Exchanging fiat currency to cryptocurrency to accomplish payment to the wildlife farm

C. Activity involving politically exposed persons with environmental, game, or forestry oversight

D. Payment of transportation charges using a fraudulent financial instrument

E. Customer requests payment of proceeds to an unrelated third party