CAMS Practice Exam Questions and Answers

A.  

The need to assess money laundering and terrorist financing risks and ensure there are adequate controls to mitigate those risks.

B.  

The identification of specific risk categories (i.e., export, inactivity, layman, and false locations) unique to the bank.

C.  

The need to understand its overall budget needs for each department and for internal audit.

D.  

The board of directors and senior management are required to have an AML risk assessment for the bank.

A.  

No, the company has been a client for many years.

B.  

Yes, shell companies are typically created to manage tax liabilities.

C.  

No, it is normal for a business to diversify by creating shell companies.

D.  

Yes, the shell companies could have been created to hide beneficial ownership.

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 enforcement actions that damage the reputation of the individual’s employer.

D.  

Violations can result in additional and more stringent anti-money laundering training for individuals.

A.  

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.

B.  

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.

C.  

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.

D.  

On-boarding a reputable Politically Exposed Person (PEP) from the EU onto the wealth management arm of a US financial institution (FI).

A.  

The client does business in countries with active terrorist organizations.

B.  

The client conducts international financial transactions exceeding U.S. $500 million.

C.  

The client exceeds the criteria of an acceptable risk model created by another institution that is not similar in size and complexity.

D.  

The client exceeds the criteria of an acceptable risk model created by the institution and does not perform acceptable remedial actions.

A.  

Organization of Economic Co-operation and Development (OECD)

B.  

Financial Action Task Force (FATF)

C.  

International Monetary Fund (IMF)

D.  

United Nations (UN)

A.  

The payment is received via wire transfer.

B.  

An agent bids on the painting for a group of investors.

C.  

The painting has more than doubled its value in ten years.

D.  

Payment is received from an account in an offshore jurisdiction.

E.  

Lack of beneficial ownership details for the originating account.

A.  

Request formal company authorization to conduct the investigation. Such authorization should be granted, if possible, by the board of directors or audit committee

B.  

Refuse to provide any records or documents to law enforcement because the bank has client privilege with its bank customers

C.  

Let the bank hire any and all contract investigators to conduct the internal investigation. That way Legal is not a party to the action and may remain independent

D.  

Not mark files or documents with privileged and Confidential: Attorney-Client Privilege and/or Work-Product. Those marks will only encourage law enforcement

A.  

A non-profit hospital

B.  

A fundraising organization

C.  

An employee benefit plan trust

D.  

A medical practice limited partnership

A.  

All persons and entities within the U.S.

B.  

All U.S.-domiciled entities and their foreign branches

C.  

All foreign-based entities that have U.S. customers

D.  

All U.S. citizens