CAMS7 by ACAMS Actual Free Exam Q&As

Question 1

According to guidelines issued by Basel Committee on Banking Supervision relating to corporate governance principles for banks, what is the role of the board of directors in addressing an institution's AML oversight and governance?

A. The board of directors should be responsible for overseeing the management of the bank's compliance risk but not involved in establishing a compliance policy that explains the processes by which compliance risks are to be identified and managed throughout the organization. B. The compliance function must have sufficient authority, stature, independence, and resources to be effective on its own and should not have access to the board of directors. C. The board of directors should establish a compliance function and approve the bank's policies for identifying, assessing, monitoring, reporting, and advising on compliance risk. D. The compliance function should report directly to the CEO concerning the bank's compliance with applicable laws, rules, and standards and only update the board of directors on the bank's efforts in managing compliance risk when required.

Discussion 0

Correct Answer: C Vote an answer

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Question 2

Which scenario indicates potential money laundering activity by a lawyer?

A. A lawyer's trust account regularly receives wire transfers from unknown remitters from a higher risk country and immediately transfers the same amount of funds received to a known beneficiary's account in a low-risk country. B. A lawyer located in a higher risk country deposits their firm's bank draft issued from their trust account to another lawyer's trust account located in a low-risk country for legal services rendered. C. A lawyer's trust account receives a large-value wire transfer from a regulated insurance company and immediately transfers the same amount of funds received to the beneficiary's bank account located in a low-risk country. D. A lawyer's trust account receives a large wire transfer deposit from a client that wanted to purchase a piece of property and then transfers the same amount to the property seller's lawyer's trust account.

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Correct Answer: A Vote an answer

Question 3

What are the main benefits of implementing explainable artificial intelligence (AI) or machine learning (ML) technologies to improve operational effectiveness within AML/CFT compliance?
(Select Two.)

A. Processes and analyzes large data sets more quickly and accurately B. Reduces the need for human resources C. Identifies AML/CFT risks without the need for human involvement D. Increases auditability, accountability, and overall good governance

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Correct Answer: A,D Vote an answer

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Question 4

Which of the following is a red flag indicating potential money laundering or terrorism financing through dealers of precious metals or high-value items?

A. A customer wants to purchase gold bars with a combination of cash and cryptocurrency B. A customer specifically requests to purchase a Kimberly Process-certified cut diamond C. A customer wants a hand-written receipt for a cash purchase of a high-end, limited-edition luxury watch D. A customer pays an antique dealer with a credit card for a high-value antique item

Discussion 0

Correct Answer: C Vote an answer

Question 5

Which of the below is a core function of a financial intelligence unit (FIU) as described in FATF Recommendation 29?

A. Prosecuting significant cases of money laundering or terrorist financing falling under national jurisdiction B. Serving as a national center for the collection and analysis of suspicious activity C. Sponsoring the research and development of advanced technological surveillance tools to be used nationally D. Sharing real-time criminal intelligence gathered from national law enforcement agencies with the private sector

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Correct Answer: B Vote an answer

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Question 6

The role of FATF-style regional bodies (FSRBs) is to: (Select Three.)

A. identify and address the current financial crime trends through the issuance of typologies originating in members outside of their FSRB's Jurisdiction. B. coordinate technical assistance for members in their FSRB jurisdiction C. identify and address any gaps in the AML/CFT policies for members outside of their FSRB jurisdiction. D. set and amend the FATF 40 Recommendations for members in their FSRB jurisdiction. E. provide AM L/C FT technical assistance needed by members in their FSRB junsdiction. F. offer mutual evaluation and follow-up processes for members in their FSRB Jurisdiction.

Discussion 0

Correct Answer: B,E,F Vote an answer

Question 7

An employee in a corporation's finance department hears news of an internal investigation into potential fraud within the company, quits her job, and disappears. If they had been observed before her resignation, which characteristics of the employee would have been considered red flags? (Select Two.)

A. The employee had a lavish lifestyle for her income B. The employee was originally from a high-risk jurisdiction C. The employee had friends in high-risk industries D. The employee was constantly evasive about the reasons for leaving her previous corporate finance job

Discussion 0

Correct Answer: A,D Vote an answer

Question 8

Which customer behavior MOST strongly indicates possible account takeover fraud?

A. Sudden login activity from unusual jurisdictions followed by rapid transfers B. Stable account balances over time C. Regular bill payments D. Gradual increase in salary deposits

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Correct Answer: A Vote an answer

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Question 9

Interactions between the compliance department and other functions or departments within an organization contribute to making the anti-financial crime (AFC) compliance program more robust by addressing specific risk areas. Which departments play a crucial role in enhancing the AFC compliance program of an organization? (Select Two.)

A. Data privacy office (DPO) B. Marketing and sales C. Information security office (ISO) D. Human resources (HR)

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Correct Answer: A,C Vote an answer

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Question 10

When selecting an anti-financial crime (AFC) tool for an organization, the most important factor to consider is whether the tool:

A. meets budget and cost requirements. B. integrates seamlessly with existing systems and processes. C. replaces manual compliance training for employees. D. automates all regulatory reporting requirements.

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Correct Answer: B Vote an answer

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Question 11

A Financial Intelligence Unit (FIU) serves as a national center for the receipt and analysis of suspicious activity reports (SARs) and can obtain additional information from other reporting entities relevant to:

A. legal activity. B. legal assessment. C. public administration. D. law enforcement.

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Correct Answer: D Vote an answer

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ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) - CAMS7 Exam Practice Test