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To become a CAMS certified professional, candidates must pass a rigorous exam that tests their knowledge of AML regulations, best practices, and emerging trends. CAMS exam consists of 120 multiple-choice questions and must be completed in four hours. CAMS exam covers four main areas: AML programs and controls, customer due diligence, transaction monitoring, and sanctions screening. To pass the CAMS exam, candidates must achieve a score of 75% or higher.
NEW QUESTION # 317
A financial institution's monitoring system triggers an alert and an internal investigation has confirmed the activity as suspicious. Which of the following should an anti-money laundering specialist do before submitting the suspicious transaction report?
- A. Secure documents related to the suspicious circumstances and the decision to report.
- B. Check with other financial institutions in accordance with the relevant law.
- C. Contact the customer for further information without disclosing the suspicion.
- D. Add information related to the suspicious activity to the customer's account-opening file.
Answer: A
Explanation:
The anti-money laundering specialist should secure all the documents related to the suspicious activity and the decision to report before submitting the suspicious transaction report (STR). This is to ensure that the evidence is preserved, the confidentiality is maintained, and the audit trail is documented. The documents may include the customer identification, transaction records, account statements, monitoring alerts, investigation reports, and any other relevant information12.
Checking with other financial institutions, adding information to the customer's file, or contacting the customer are not appropriate actions to take before submitting the STR. These actions may compromise the confidentiality of the report, alert the customer of the suspicion, or interfere with the investigation by the competent authorities12.
References: 1: ACAMS (2020), Study Guide for the Certification Examination, 6th Edition, ACAMS, Miami, FL, USA, www.acams.org/en/cams-certification-package-6th-edition, pp. 35-36. 2: ACAMS (2020), CAMS Examination Preparation Video, 6th Edition, ACAMS, Miami, FL, USA, www.acams.org/en/cams-certification-package-6th-edition, Module 2.
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NEW QUESTION # 318
Your company has an on-premises datacenter.
You plan to publish an app that will recognize a set of individuals by using the Face API. The model is trained.
You need to ensure that all images are processed in the on-premises datacenter.
What should you deploy to host the Face API?
- A. a Docker container
- B. Azure Data Box Edge
- C. Azure File Sync
- D. Azure Application Gateway
Answer: A
Explanation:
A container is a standard unit of software that packages up code and all its dependencies so the application runs quickly and reliably from one computing environment to another. A Docker container image is a lightweight, standalone, executable package of software that includes everything needed to run an application:
code, runtime, system tools, system libraries and settings.
Incorrect Answers:
D: Azure Data Box Edge is an AI-enabled edge computing device with network data transfer capabilities. This article provides you an overview of the Data Box Edge solution, benefits, key capabilities, and the scenarios where you can deploy this device.
Data Box Edge is a Hardware-as-a-service solution. Microsoft ships you a cloud-managed device with a built-in Field Programmable Gate Array (FPGA) that enables accelerated AI-inferencing and has all the capabilities of a storage gateway.
References:
https://www.docker.com/resources/what-container
NEW QUESTION # 319
Which principle about safeguarding privacy and data should an auditor adhere to when performing an AML investigation?
- A. During evidence gathering, privacy laws are less important than local AML laws.
- B. Terrorist financing is more relevant in the context of data protection and supersedes laws.
- C. AML and Data Protection Privacy laws should not be mutually exclusive.
- D. Countries should clarify where AML and Data Protection Privacy laws are not balanced.
Answer: C
Explanation:
An auditor who performs an AML investigation should adhere to the principle that AML and Data Protection Privacy laws should not be mutually exclusive. This means that the auditor should respect and protect the personal data of the individuals involved in the investigation, while also complying with the AML obligations and requirements. The auditor should balance the legitimate interests of preventing and detecting money laundering and terrorist financing with the fundamental rights and freedoms of the data subjects, and apply the data protection principles of lawfulness, fairness, transparency, purpose limitation, data minimisation, accuracy, storage limitation, integrity, and confidentiality.
The auditor should also take into account the relevant legal frameworks and guidance on data protection and AML, such as the EU General Data Protection Regulation (GDPR), the EU Anti-Money Laundering Directive (AMLD), the Council of Europe Convention 108+ on data protection, and the Guidelines on data protection for the processing of personal data for AML/CFT purposes issued by the Consultative Committee of the Convention 108+. The auditor should also cooperate and consult with the data protection authorities and the AML authorities, as appropriate, to ensure compliance and consistency.
References:
Data protection and the EU's anti-money laundering regulation
The EU's anti-money laundering regulation and data protection: Part II
For Banks, Data Privacy and Anti-Money Laundering Don't Have to Be Incompatible Guidelines on data protection for the processing of personal data for AML/CFT purposes Data Protection requirements must go hand in hand with the prevention of money laundering and terrorism financing ACAMS CAMS Certification Study Guide 6th Edition
NEW QUESTION # 320
Which of the following poses the greatest money laundering risk for a financial institution offering on-line services to customers?
- A. Institutions offering on-line services have no possibility to properly verify the identity of their customers.
- B. There is greater difficulty in matching the customer with the provided identification doc-umentation.
- C. There is no human scrutinizing the customer's transactions, thus increasing the potential for large transactions.
- D. Customers can directly access their accounts without being detected.
Answer: B
Explanation:
According to the Anti-Money Laundering Specialist (the 6th edition) study guide, one of the main challenges of providing on-line services to customers is the verification of their identity and the authentication of their transactions1. The lack of face-to-face contact and the use of electronic documents increase the risk of identity fraud, impersonation, and account takeover2. Therefore, financial institutions offering on-line services need to implement robust customer due diligence (CDD) measures, such as using multiple sources of information, verifying biometric data, and applying risk-based monitoring3.
References:
1: CAMS Study Guide, 6th Edition, Chapter 4, Section 4.1, page 103
2: CAMS Study Guide, 6th Edition, Chapter 4, Section 4.2, page 104
3: CAMS Study Guide, 6th Edition, Chapter 4, Section 4.3, page 105
NEW QUESTION # 321
Enhanced due diligence (EDD) may be bypassed for which situation?
- A. On-boarding a reputable Politically Exposed Person (PEP) from the EU onto the wealth management arm of a US financial institution (FI).
- B. On-boarding a branch or majority-owned subsidiary of an EU or US FI located in a high-risk third country that fully complies with group-wide policies and procedures.
- C. On-boarding a subsidiary in a high-risk country with a complex ownership structure of a long-standing and reputable customer based in the EU or US.
- D. On-boarding a casino headquartered in the EU or US that is part of an international hotel chain, provides less than 50% of overall revenue and that fully complies with group-wide policies and procedures.
Answer: D
Explanation:
Enhanced due diligence (EDD) is a set of additional measures that must be applied by financial institutions (FIs) in higher-risk situations, such as when dealing with customers or transactions from high-risk third countries, customers who are politically exposed persons (PEPs), or customers who present a higher risk of money laundering or terrorist financing. EDD may include obtaining more information on the customer's identity, source of funds, source of wealth, business relationships, and purpose of the transaction, as well as conducting more frequent and intensive ongoing monitoring of the customer's activities.
However, EDD may be bypassed for certain situations where the risk of money laundering or terrorist financing is low, and where the customer is subject to adequate supervision and regulation in the EU or the US. According to the CAMS Study Guide - 6th Edition1, one such situation is when on-boarding a casino that is part of an international hotel chain, provides less than 50% of overall revenue and that fully complies with group-wide policies and procedures. This is because such a casino is likely to have a low risk profile, as it is not the main source of income for the hotel chain, and it adheres to the same standards and controls as the rest of the group. Therefore, EDD may not be necessary for this situation, and the FI may apply simplified due diligence (SDD) instead.
The other situations listed in the question are not eligible for bypassing EDD, as they involve higher-risk factors, such as dealing with customers or entities from high-risk third countries, customers with complex ownership structures, or customers who are PEPs. These situations require FIs to apply EDD measures to mitigate the risk of money laundering or terrorist financing.
References:
CAMS Study Guide - 6th Edition, Chapter 3, Section 3.4, page 84
White Paper on KYC - Enhanced Due-Diligence, page 2
Anti-money laundering - a guide to customer due diligence, page 3
Enhanced Due Diligence for High-risk Customers, page 1
NEW QUESTION # 322
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?
- A. Commodities traders
- B. Money services businesses
- C. Real estate agents
- D. Hawala operators
Answer: C
NEW QUESTION # 323
A UK national has accounts with a bank in Belgium, who maintains a branch in New York. The UK national has been recently added and screened against the Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons List. Which action should the Belgian bank take?
- A. Continue performing transactions as the bank's headquarters is in Belgium.
- B. Freeze the assets of the customer and report to OFAC.
- C. Allow all transactions up to the limit imposed by OFAC and report the transactions to the local financial intelligence unit.
- D. Close the account and ask the customer to send the funds to a bank account in the US.
Answer: B
Explanation:
The Belgian bank should freeze the assets of the customer and report to OFAC, as this is the required action for any US person or entity, or any person or entity within the US, that holds or controls property or interests in property of a person or entity on the OFAC Specially Designated Nationals and Blocked Persons List (SDN List). The SDN List is a list of individuals and entities that are subject to US sanctions and whose assets are blocked by OFAC. The Belgian bank, by maintaining a branch in New York, is subject to the jurisdiction and authority of OFAC, and must comply with its regulations and directives. Allowing transactions, closing the account, or continuing business as usual would violate the sanctions and expose the bank to civil and criminal penalties.
References:
ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 6, Section 6.2.1, p. 1691 ACAMS CAMS Certification Exam Outline, 6th Edition, Domain 3, Task 3.1, p. 62 OFAC FAQs: Sanctions Compliance, Question 973 OFAC FAQs: General Questions, Question 84
NEW QUESTION # 324
The bank for International Settlements provides the secretariat for which organization?
- A. FATF
- B. The Egmont Group
- C. The Wolfsberg Group
- D. The Basel Committee
Answer: D
Explanation:
Reference: http://www.bis.org/bcbs/about.htm
Basel Committee on Banking Supervision (Basel Committee) The Basel Committee was established by the G-10's central bank of governors in 1974 to promote sound supervisory standards worldwide. Its secretariat is appointed by the Bank for International Settlements in Basel, Switzerland.
NEW QUESTION # 325
Money laundering can cause which consequences for a financial institution? (Select Two.)
- A. Reduction in number of employees
- B. Increases in correspondent banking facilities
- C. Reduction or loss of profitable business
- D. Increases in investigation costs and fines
- E. Increases in corporate taxes
Answer: C,D
Explanation:
Money laundering can have serious consequences for financial institutions. They may face increased investigation costs and fines from regulators and law enforcement agencies for failing to detect or prevent money laundering activities. Additionally, money laundering can result in a loss of profitable business as customers and counterparties may no longer want to do business with the institution due to its reputation for being associated with illicit activity.
Reference: Certified Anti-Money Laundering Specialist (CAMS) Study Guide, 6th Edition, page 76.
NEW QUESTION # 326
A junior account manager within an international private bank in Country A was asked by one of his valued customers, who has held an account for several years in the institution, about depositing a large sum of cash into her account. The junior account manager informed his customer that his bank does not accept cash. The junior account manager later reviewed a customer activity report and noticed a number of smaller dollar wires from banks in neighboring Country B, which has lax currency controls, that totaled about as much as the customer intended to deposit.
What should the junior account manager do?
- A. Close the account
- B. Notify the anti-money laundering specialist of his bank, but do not call the customer
- C. Offer the customer a more secure method of depositing in the hope of learning something moreduring the conversation
- D. File a suspicious transaction report with the Financial Intelligence Unit
Answer: B
NEW QUESTION # 327
An anti-money laundering specialist at a large institution is responsible for informing senior management about the status of the anti-money laundering program across the organization. The global institution handles retail banking, commercial banking, global markets, private banking and has an affiliated securities dealer.
The specialist and the team provide corporate strategic direction to these areas on anti-money laundering related subjects. The following information is reported to executive management on a regular basis:
* Total number of suspicious transactions identified and reported
* Suspicious transaction trends
* Training that has occurred for the various units
* Status report on the anti-money laundering regulatory environment
* Summary of exception reports
Which of the following additional elements is the most useful?
- A. Notification of management changes in the different major divisions.
- B. The total credit exposure for non-cooperative countries and territories.
- C. Details on inquiries received from law enforcement.
- D. Results of related audits and examinations.
Answer: C
NEW QUESTION # 328
Which statement is true regarding the FATF standards for SARs/STRs information sharing within a financial group?
- A. FIs must retain copies of SARs/STRs and supporting documentation for five years from the date of filing the STRs
- B. FIs cannot share customer information at all since it is confidential.
- C. FIs must require approval from regulators to share SARs/STRs information and supporting documentation.
- D. Financial institutions (FIs) should establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.
Answer: A
Explanation:
Reference: https://www.fia.tc/wp-content/uploads/2018/04/FIA-SARGUIDE-0515-1.0.pdf
NEW QUESTION # 329
How can violations of anti-money laundering laws be a risk to individuals?
- A. Violations can result in civil and criminal fines and penalties against the individuals.
- B. Violations can result in additional legislation that the individuals have to comply with.
- C. Violations can result in additional and more stringent anti-money laundering training for individuals.
- D. Violations can result in enforcement actions that damage the reputation of the individual's employer.
Answer: A
NEW QUESTION # 330
Which action should countries take related to the financing of terrorist acts in accordance with the Financial Action Task Force 40 Recommendations?
- A. Criminalize
- B. Oppose
- C. Sanction
- D. Prosecute
Answer: A
Explanation:
The FATF 40 Recommendations are the international standards for combating money laundering, terrorist financing, and proliferation financing. They provide a comprehensive and consistent framework of measures that countries should implement in their national systems. Recommendation 5 of the FATF 40 Recommendations states that countries should criminalize the financing of terrorism, terrorist acts and terrorist organizations. This means that countries should adopt laws that make it an offence to provide or collect funds or other assets with the intention or knowledge that they will be used to carry out terrorist acts or support terrorist organizations. Countries should also ensure that such offences are punishable by effective, proportionate and dissuasive sanctions. Furthermore, countries should ensure that terrorist financing offences extend to any person who wilfully provides or collects funds or other assets by any means, directly or indirectly, with the unlawful intention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out terrorist acts or support terrorist organizations. Therefore, the correct answer is D. Criminalize, as this is the action that countries should take related to the financing of terrorist acts in accordance with the FATF 40 Recommendations.
References:
FATF website
FATF 40 Recommendations - February 2012
FATF Recommendation 5 - Criminalisation of Terrorist Financing
Reference:
https://www.fatf-gafi.org/publications/methodsandtrends/documents/fatf-action-against-terroristfinancing- feb-2019.html
NEW QUESTION # 331
What types of things should an institution incorporate in it AML policies and procedures? Choose 3 answers
- A. Periodic audits, to be performed by independent staff at least once a year
- B. Ability to incorporate relevant legislative and regulatory AML changes
- C. On-going training, as well as initial training of new employees
- D. Review of the AML policy by the Board of Directors
Answer: A,B,C
Explanation:
An institution should incorporate on-going training, periodic audits, and ability to incorporate relevant legislative and regulatory AML changes in its AML policies and procedures. These are essential elements of an effective AML program, as they ensure that the staff are aware of their roles and responsibilities, the institution is compliant with the applicable laws and regulations, and the AML program is updated and adapted to the changing risks and environment.
References: =
CAMS Certification Package - 6th Edition | ACAMS1
CAMS Certifications: How to Get CAMS Certified | ACAMS2
ACAMS CAMS Certification Video Training Course - Exam-Labs3
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)4
NEW QUESTION # 332
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