2019 Free ACAMS EnsurePass CAMS Dumps VCE and PDF Download Part 2

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A prospective AML officer comes highly recommended by a bank’s up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?


A. Do a thorough background check
B. Confer with its regulatory agency to determine whether it is appropriate to hire the person
C. Hire the individual, relying on the recommendation of its correspondent
D. Hire the individual on a probationary basis so that the institution can determine if the individual is sufficiently experienced and capable


Correct Answer: A


Which type of transactions present the highest risk?


A. Wire transfers from a publicly listed company
B. Payroll payments
C. Social insurance payments
D. Foreign exchanges


Correct Answer: D


According to experts, what is the most effective way to prevent money laundering through financial institutions?


A. Ensuring that transaction monitoring systems can identify terrorist financing
B. Collecting information on beneficial owners and foreign customers
C. Instituting a policy prohibiting the acceptance of funds intended for terrorist financing
D. Implementing a sound customer due diligence program


Correct Answer: D


What should a bank focus on to ensure on-going compliance with its AML program?


A. It should ensure that it develops and provides on-going targeted training of all current and new employees
B. It should subject all new employees to criminal background checks before being hired
C. It should review and update its transaction monitoring system
D. It should ensure that the regulators have reviewed and have approved the bank’s AML program


Correct Answer: A


What should a compliance officer do during an ongoing investigation into a client’s activities by a competent authority?


A. Ensure communication with regulatory and law enforcement authorities is conducted only through the Board of Directors
B. Communicate only in writing regulatory and law enforcement authorities in line with applicable local laws
C. Communicate with regulatory and law enforcement authorities in line with applicable local laws
D. Only provide information that is specifically and directly requested


Correct Answer: A


How can dealers in high-value items be at risk for money laundering?


A. The value of precious metals such as gold and silver is constantly fluctuating.
B. Carrying large amounts of gems of high value is physically easy
C. Paperwork is not required to ship precious metals and gems
D. Drug dealers prefer cash to precious metals and gems


Correct Answer: B


Which activity is most likely to facilitate money laundering through on-line systems with inadequate controls?


A. Conducting a large volume of transactions
B. Providing continuous worldwide access
C. Conducting anonymous transactions
D. Conducting large value transactions


Correct Answer: B


In the FATF 40 recommendations, the focus of AML efforts has been expanded beyond Financial Institutions. Which three businesses and/or professions are covered? Choose 3 answers


A. casinos, when customers engage in financial transactions equal to or above a designated Threshold
B. Real estate agents when they are involved in transactions for clients concerning buying and selling properties
C. Dealers in art, when they engage in any cash transaction with a customer at or above a designated threshold
D. Trust and company service providers


Correct Answer: BCD


When requested by law enforcement via legal process to provide records or documentation, what should the officers of financial institution do?


A. Provide all records and documents the officer believes would be pertinent to the law enforcement agent’s investigation
B. Refuse to provide any records or documents until the agent narrows the scope of the request down to what he or she actually needs
C. Not act on the legal process until the bank officer has contact w4h the agent and learns what the agent is investigating
D. if there is no basis for contesting the request, provide what is requested


Correct Answer: C


Which AML standards have force of law?


A. Standards as defined in the Third European Union Money Laundering Directive (2005/60/EC)
B. Standards as defined by the United Nations (UN)
C. Standards as defined by World Bank / International Monetary Fund (IMF)
D. 40 Recommendations


Correct Answer: A


What are some red flags pertaining to potentially suspicious transactions by a customer? Choose 3 answers


A. Having multiple addresses and/or moving frequently
B. Having a commercial account with cash deposits
C. Have a common address with several other bank clients
D. Having multiple individuals use the ATM card connected with the account m different cities


Correct Answer: ACD


An anti-money laundering expert is hired by a new Internet bank to assess the money laundering threat to the bank. What is the most important recommendation for the expert to make given it is an on-line bank?


A. The bank should limit the amount of money which can be processed per transaction
B. The bank should ensure that prospective new customers can be properly identified
C. The bank should set up automated programs to analyze transactions for money laundering activity
D. The bank should ensure that a firewall is set up to protect the transactions


Correct Answer: A


Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?


A. They provide a legal basis for transmitting evidence that can be used for prosecution and judicial proceedings
B. They receive reports of suspicious transactions from financial institutions to disseminate to local Law enforcement and foreign FIUs
C. They obtain intelligence that might lead to evidence
D. They issue the Prmc4es of Information Exchange Between Financial intelligence Units (FIUs)


Correct Answer: A


Which element is generally required of all anti-money laundering programs?


A. A computer-based suspicious activity monitoring system
B. A qualified compliance officer to manage the program
C. Annual in-person AML training for all employees
D. An enhanced due diligence program for all new customers


Correct Answer: B


After an institution files an STR with regard to a particular account, a law enforcement agent requests the institution to keep the account open until advised otherwise by law enforcement. What steps should the institution take?


A. The institution should close the account in order not to be caught in the middle of a law enforcement investigation
B. The institution should follow the request of the law enforcement agent and keep the account open
C. The institution should request a written letter from the law enforcement (agency signed by an appropriate authorized signature
D. The institution should keep the account open only if doing so comports with the bank’s own AML procedures


Correct Answer: C


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. What should the compliance officer do next?


A. Investigate these unusual transactions further
B. Contact the local FIU for advice
C. File an STR with the competent authorities
D. Document reasons for not filing a STR


Correct Answer: C


What is one recommendation of the Basel Committee’s 2001 paper Customer Due Diligence for Banks”?


A. Numbered accounts should not be allowed
B. Certain types of private banking can be exempt from KYC procedures
C. Banks should develop dear descriptions of acceptable customers
D. Politically Exposed Persons (PEPs) should not be accepted as customers


Correct Answer: C


A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group revealed a director having dose ties with a known terrorist group primarily financed through kidnapping and extortion. What is a key risk indicator associated with terrorism financing?


A. The sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence
B. A large sum sent by money order to a charity
C. There is no risk relating of terrorism financing when the charity group is operating legitimately in that country
D. There is a link between the charity group and a known terrorist group


Correct Answer: D


In performing a risk analysis, which factor(s) should a financial institution review?


A. The level of its gross revenue
B. Recent regulatory actions against financial institutions of comparable size
C. Its customer base, location, products and services
D. The adequacy and completeness of its STR filings


Correct Answer: C


What should law enforcement provide when asking an institution to keep an account open?


A. An explanation of the underlying conduct that is being investigated
B. A written request with an explanation of the scope of the investigation
C. An in-person visit by an investigating official to explain the reasons why the account must remain open
D. A written request on government agency letterhead with the appropriate signature


Correct Answer: D