CAMS

A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking. Which red flag should prompt additional transactional review?A . Wire transfer activity from countries with significant migrant populationsB . Cash deposits that occur in cities where the customer...

What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee’s Customer Due Diligence for Banks paper?A . Annual staff trainingB . A customer acceptance policyC . The same KYC requirements must be applied in all casesD . All completed KYC documents must be reviewed...

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 . A complete client list from the non-C . bankD . The identity of owners and percentage of ownership of the non-F ....

What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)A . Diminished reputationB . Industry of regulatory sanctionsC . Charges of deceptive business practicesD . Higher marketing and public relations costsView AnswerAnswer: BC

A United States (U.S.) bank was recently alerted by law enforcement of an increase in sale of large denomination U.S. bank notes to casas de cambio. They suspect that a Mexican syndicate is operating a money laundering scheme in the bank’s jurisdiction. Which two steps should be taken to trace...

What are two requirements for monitoring and reporting suspicious activity for correspondent banking according to the Wolfsberg Principles? (Choose two.)A . Incorporate suspicious activity monitoring into periodic reviewsB . Incorporate due diligence results such as customer risk ratingsC . Utilize downstream correspondents to investigate and report suspicious activityD . Investigate...

The Wolfsberg Anti-Money Laundering Principles for Private Banking require new clients to be approved by whom?A . The board of directorsB . Only the private bankerC . The private banker’s supervisorD . At least one person other than the private bankerView AnswerAnswer: D Explanation: Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/wolfsberg-standards/10.% 20Wolfsberg-Private-Banking-Prinicples-May-2012.pdf (04)

Why do governments and multi-national bodies impose economic sanctions?A . To impede kleptocracyB . To enforce foreign policy objectivesC . To combat an imminent terrorist threatD . To prevent fraudulent international trade transactionsView AnswerAnswer: B Explanation: Reference: https://en.wikipedia.org/wiki/Economic_sanctions

When should the anti-money laundering risk assessment be updated?A . Every two yearsB . After a merger or acquisitionC . When the board of directors changesD . When instructed to by the Financial Action Task ForceView AnswerAnswer: B Explanation: Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/17.%20Wolfsberg-Risk­Assessment-FAQs-2015.pdf (10)

Which aspect of the USA PATRIOT Act impacts foreign financial institutions?A . Requiring enhanced due diligence for foreign shell banksB . Expanding sanctions requirements to aD . financial institution’s foreign branchesE . Expanding the anti-money laundering program requirements to all foreign financial institutionsF . Providing authority to impose special measures...