CAMS

A compliance officer at an insurance company has been reviewing the transaction activity of several clients. Which transaction is considered a red flag for potential money laundering?A . A client paid the quarterly life insurance premium using money orders from two different banks.B . A client from a high-risk jurisdiction...

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...

What should countries do to help prevent non-profit organizations from being abused for the financing of terrorism according to the Financial Action Task Force 40 Recommendations?A . Allow for freezing assets of non-profit organizationsB . Require all non-profit organizations to register with the country’s financial intelligence unitC . Ensure non-profit...

What are two sources for maintaining up-to-date sanctions information? (Choose two.)C . Federal Bureau of Investigation’s National Security LettersF . Department of the Treasury Office of Foreign Assets Control . Department of the Treasury C Section 311 C Special Measures . Financial Action Task Force’s list of High Risk and...

What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee’s paper on Customer Due Diligence for Banks?A . Determining that a local figure is a PEPB . Reviewing when a relationship is establishedC . Reviewing relationships at account opening and on a periodic...

The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account. Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)A . A list...

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)

Upon a routine account review a money laundering investigator identified a number of large round dollar wire transfer deposits into a business account owned by a local auto repair shop. The wire transfers all originated from a country that is a known financial secrecy haven with poor anti-money laundering controls....

A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists’ cells. Which action by the charity indicates possible terrorist financing?A . The charity frequently withdraws cash from the bankB . The charity has...

What is an example of the integration stage of money laundering involving a bank or another deposit-taking institution?A . Depositing illicit funds into an account set up for a front companyB . Directing third parties to exchange illicit cash for negotiable instrumentsC . Wiring illicit funds from an account at...