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ACAMS CAMS (Certified Anti-Money Laundering Specialists) exam is a globally recognized certification that validates the knowledge and skills of professionals working in the anti-money laundering (AML) field. Certified Anti-Money Laundering Specialists certification is offered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), which is the largest international membership organization dedicated to enhancing the knowledge and skills of professionals in the AML field.
The CAMS exam covers a wide range of topics related to AML, including money laundering trends and methods, risk assessment, customer due diligence, suspicious activity reporting, and sanctions compliance. CAMS exam is designed to measure a candidate's knowledge and understanding of these topics, as well as their ability to apply this knowledge in real-world situations.
NEW QUESTION # 123
Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking?
Choose 3 answers.
- A. It is not subject to inspection by the banking authority that licensed it to conduct banking activities
- B. It does not employ one or more individuals at its fixed address where it is authorized to conduct business or maintain operating records at that address
- C. It does not conduct business at a fixed address in a jurisdiction in which it is authorized to conduct business.
- D. It is not subject to AML laws that require it to implement an AML program
Answer: A,B,C
Explanation:
According to the Wolfsberg Financial Crime Principles for Correspondent Banking1, a shell bank is defined as a bank that has no physical presence in the jurisdiction in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision. Physical presence means meaningful mind and management located within a country. The existence simply of a local agent or low level staff does not constitute physical presence. Therefore, a shell bank meets the criteria A, B, and D, as it does not conduct business at a fixed address, does not employ one or more individuals or maintain operating records at that address, and is not subject to inspection by the banking authority that licensed it.
Criterion C is not specific to shell banks, as any bank, whether shell or not, may or may not be subject to AML laws that require it to implement an AML program, depending on the jurisdiction.
References:
Wolfsberg Financial Crime Principles for Correspondent Banking1, Section: Definitions, pp. 3-4.
NEW QUESTION # 124
Which factor should a bank consider before sharing information about a customer with its broker-dealer affiliate in the case of an investigation?
- A. Whether the broker-dealer affiliate can rely on the due diligence done by the bank
- B. Whether both institutions have an account or are in the process of opening an account for the customer
- C. Whether privacy and data protection rules permit the bank to share the information with the affiliate
- D. Whether there is a mutual legal assistance treaty in place between the two institutions
Answer: D
NEW QUESTION # 125
A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $ 1,250,000 from a dealer in Benin in West AfricA. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires receives.
What is the suspicious behavior?
- A. Wires received are in large, even dollar amounts
- B. Account debits are payable to transport companies
- C. Vehicles are regularly shipped internationally
- D. The dock shipping receipts match the vehicles
Answer: A
NEW QUESTION # 126
What is most valuable when using the internet as an investigative source?
- A. A powerful search engine
- B. A combination of independent thinking and technical skills
- C. A reference list of websites known to yield credible information
- D. A team of AML investigators
Answer: C
NEW QUESTION # 127
An anti-money laundering specialist at a financial institution has received a legal request to provide all transaction records for a specific individual since 2004. Which of the following item s should be delivered?
1. Monthly statements and transaction activities for that individual since 2004.
2. All wire transfers for that individual since 2004.
3.Signature cards from accounts opened by that individual since 2004.
4. All security trading activities for that individual since 2004.
- A. 1, 2, and 4 only
- B. 2, 3, and 4 only
- C. 1, 2, and 3 only
- D. 1, 3, and 4 only
Answer: A
Explanation:
According to the CAMS study guide, chapter 4, page 1191, transaction records include any records that reflect the movement of funds or assets, such as wire transfers, checks, deposits, withdrawals, securities trades, etc.
Therefore, items 1, 2, and 4 are examples of transaction records that should be delivered in response to a legal request. Item 3, signature cards, are not transaction records, but rather account opening documents that contain the customer's name, address, identification, and signature. These documents may be relevant for customer due diligence or identification purposes, but they do not reflect the transaction activities of the customer.
References:
1: ACAMS CAMS Study Guide - 6th Edition, Chapter 4, page 119:
https://www.acams.org/wp-content/uploads/2019/09/ACAMS-CAMS-Study-Guide-6th-Edition-Chapter-4.pdf
NEW QUESTION # 128
A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.
During on-boarding, the client's wealth was estimated at $7 million. Shortly thereafter, the client's father became president of Country
B. During a routine client review two years later, it was identified that client's wealth had grown to $510 million.
What are two red flags that indicate money laundering or financial terrorism? (Choose two.)
- A. The client is a family member of a PEP from a country known for corruption.
- B. The substantial growth in wealth during a short period of time.
- C. The holding company is in Country A with a bank account in one of the international banks.
- D. The client is from a country known for corruption.
Answer: A,B
NEW QUESTION # 129
A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $ 1,250,000 from a dealer in Benin in West AfricA. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires receives.
What is the suspicious behavior?
- A. Wires received are in large, even dollar amounts
- B. Account debits are payable to transport companies
- C. Vehicles are regularly shipped internationally
- D. The dock shipping receipts match the vehicles
Answer: A
Explanation:
The correct answer is C. Wires received in large, even dollar amounts are a suspicious behavior, as they may indicate an attempt to avoid reporting thresholds or to conceal the source of funds. Large and round numbers are often used by money launderers to simplify calculations or to avoid arousing suspicion12. The other options are not necessarily suspicious, as they may reflect the normal business operations of a wholesale auto business that ships vehicles internationally. The dock shipping receipts match the vehicles (A), vehicles are regularly shipped internationally (B), and account debits are payable to transport companies (D) are all plausible and legitimate activities for such a business.
References:
ACAMS CAMS Certification Video Training Course3, Module 3: Risks and Methods of Money Laundering and Terrorism Financing, Lesson 2: Methods of Money Laundering ACAMS CAMS Certification Study Guide1, Chapter 3: Risks and Methods of Money Laundering and Terrorism Financing, Section 3.2: Methods of Money Laundering, pp. 79-80
NEW QUESTION # 130
The main purpose of the US Treasury Department for OFAC's extraterritorial reach is to:
- A. protect allied nations of the US from the economic threats of non-allied nations.
- B. align OFAC's and other countries' extraterritorial reach requirements.
- C. accomplish the foreign policy and national security goals of the US.
- D. defend the US against questionable trade practices of its economic rivals.
Answer: C
Explanation:
Reference:
https://www.natlawreview.com/article/aggressive-extraterritorial-reach-us-economic-sanctions-foreign-company
NEW QUESTION # 131
What are three indicators of money laundering associated with using electronic funds transfers? Choose 3 answers
- A. Regular and frequent transfers from the account of a large company said to be payment forgoods bought on credit
- B. Funds transfers are received or sent from the same person to or from different accounts
- C. Funds transfers to or from a financial secrecy haven without an apparent business reason
- D. Payment or receipts with no apparent link to legitimate contracts, goods or services
Answer: B,C,D
NEW QUESTION # 132
A Trust and Company Service Provider (TCSP) providing services should have policies and procedures in place to identify critical information of the:
- A. general manager.
- B. controller.
- C. registered address.
- D. signatory.
Answer: D
Explanation:
A TCSP providing services should have policies and procedures in place to identify critical information of the signatory, as this is one of the key elements of the customer due diligence (CDD) process. The signatory is the person who has the authority to sign documents or contracts on behalf of the customer, such as a company, a trust, or a partnership. The signatory may also be the beneficial owner, the controller, or a nominee of the customer. The TCSP should verify the identity and the capacity of the signatory, as well as the source and origin of the funds or assets involved in the transaction or business relationship. The TCSP should also monitor the activities of the signatory and report any suspicious or unusual transactions or changes in the signatory's behaviour or profile.
References:
ACAMS Study Guide for the CAMS Certification Examination - 6th Edition, Chapter 2: Compliance Standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), Section 2.2: Customer Due Diligence (CDD), Subsection 2.2.1: CDD Process, pp. 51-52 RISK-BASED APPROACH GUIDANCE FOR TRUST AND COMPANY SERVICE PROVIDERS (TCSPs), Section III - Guidance for TCSPs, Subsection III.1: Risk Assessment, pp. 23-24 SRA | Trust and Company Service Provider guidance | Solicitors Regulation Authority, Section:
Definition, Paragraph 2
A Trust and Company Service Provider (TCSP) providing services should have policies and procedures in place to identify critical information of the:, Answer B
NEW QUESTION # 133
What does the Egmont Group's support for its members include?
- A. Issuing strategic products for law enforcement agencies and FIUs on topics of international interest
- B. Expanding the ability of FIUs to enforce laws and exchange information globally to combat money laundering and terrorist financing
- C. Expanding and systematizing international cooperation in the reciprocal exchange of information
- D. Issuing due diligence models for financial institutions
Answer: C
NEW QUESTION # 134
An automotive parts company in South America sends multiple $500,000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information.
What are two red flags that indicate how trade-based money laundering could be occurring in this instance?
(Choose two.)
- A. The packaging is inconsistent with the commodity or shipping method
- B. Significant discrepancies appear between the description of the commodity on the bill of lading and the invoice
- C. The type of commodity being shipped appears inconsistent with the exporter or importer's regular business activities
- D. The transaction involves the use of front (or shell) companies
Answer: C,D
NEW QUESTION # 135
Which two individuals are ordinarily beneficial owners of a private banking account according to the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)
- A. Those who generally have ultimate control through ownership or other means over the funds in the account
- B. Those who are the ultimate source of funds for the account and whose source of wealth should be subject to due diligence
- C. Those who are authorized signers on the account
- D. Those who have legal title to a controlling share interest in the customer
Answer: A,B
Explanation:
Explanation/Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/wolfsberg-standards/10.%
20Wolfsberg-Private-Banking-Prinicples-May-2012.pdf (2)
NEW QUESTION # 136
Which aspect of the USA PATRIOT Act impacts foreign financial institutions?
- A. Expanding sanctions requirements to a U.S. financial institution's foreign branches
- B. Providing authority to impose special measures on institutions that are of primary money-laundering concern
- C. Requiring enhanced due diligence for foreign shell banks
- D. Expanding the anti-money laundering program requirements to all foreign financial institutions
Answer: B
NEW QUESTION # 137
A private banker of a major international bank is onboarding a new private investment company. The banker has verified the identity of the two directors, a husband and wife, who are equal shareholders. The funds in the account will be provided solely by the wife.
The banker was later informed by the company that an additional director and shareholder will be added to the company although the new shareholder will not provide funds.
What is the next step for due diligence in respect to the additional director and shareholder according to the Wolfsberg Anti-Money Laundering Principles for Private Banking?
- A. Refuse to open the account as it is not usual for an individual to be a director and shareholder of a private investment company without providing funds.
- B. Verify the identity of this individual, including due diligence in respect of background and reputation, and undertake due diligence on her source of funds and wealth
- C. Seek to further understand the relationship between the shareholders and verify the identity of the individual which may include due diligence in respect to her background and reputation
- D. Seek to further understand the relationship between the shareholders and undertake due diligence on the source of funds and wealth for each of the shareholders
Answer: D
NEW QUESTION # 138
In accordance with Financial Action Task Force (FATF) standards, when the minimum AML requirements of the host country where a financial institution (Fl) operates are less strict than those of the Fl's home country, the Fl:
- A. should always apply additional measures on their branches and majority-owned subsidiaries in host countries to manage the money laundering and terrorist financing risk overseas.
- B. should close down its operations in the host countries where minimum AML requirements are less strict than those of the home country.
- C. is required to impose more strict requirements on host country branches, disregarding if host country laws and regulation permit such action.
- D. is required to ensure that their branches and majority-owned subsidiaries in host countries implement the requirements of the home country, to the extent that host country laws and regulations permit.
Answer: D
Explanation:
In accordance with Financial Action Task Force (FATF) standards [1][2], when the minimum AML requirements of the host country where a financial institution (Fl) operates are less strict than those of the Fl's home country, the Fl is required to ensure that their branches and majority-owned subsidiaries in host countries implement the requirements of the home country, to the extent that host country laws and regulations permit. This means that the Fl should not impose more strict requirements on host country branches, disregarding if host country laws and regulation permit such action, and should not close down its operations in the host countries where minimum AML requirements are less strict than those of the home country.
However, the Fl should always apply additional measures on their branches and majority-owned subsidiaries in host countries to manage the money laundering and terrorist financing risk overseas.
NEW QUESTION # 139
Which is the first valid step in the Mutual Legal Assistance Treaties (MLAT) international cooperation process?
- A. An investigator from the requesting country visits the country where the information is sought and takes statements from the identified witnesses or suspects.
- B. The central authority of the requesting country sends a commission letter of request to the central authority of the other country.
- C. The central authority that receives the request sends it to a local judicial officer to find out if the information is available.
- D. The investigator may remove the evidence collected without asking permission to do so.
Answer: B
NEW QUESTION # 140
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 bank
- B. The charity receives cash donations primarily from European countries
- C. The charity has branch locations located in various countries
- D. The charity maintains a bank account for non-business-related expenses
Answer: C
NEW QUESTION # 141
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ACAMS CAMS (Certified Anti-Money Laundering Specialists) Certification Exam is a highly respected and globally recognized certification for professionals who are involved in the prevention and detection of money laundering and other financial crimes. Certified Anti-Money Laundering Specialists certification is offered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), which is the largest international organization dedicated to enhancing the knowledge and skills of professionals in the anti-money laundering (AML) field.
Exam Questions Answers Braindumps CAMS Exam Dumps PDF Questions: https://www.dumpsactual.com/CAMS-actualtests-dumps.html
CAMS Test Prep Training Practice Exam Questions Practice Tests: https://drive.google.com/open?id=1iULPaaYYyjCo35Hji1pnf4bX47GR5bci
