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Free and Premium ACAMS CAMS-FCI Dumps Questions Answers

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Total 101 questions

Advanced CAMS-Financial Crimes Investigations Questions and Answers

Question 1

Law enforcement (LE) suspects human trafficking to occur during a major sporting event. LE officers asked several financial institutions (FIs) to monitor financial transactions occurring before, during, and after the event.

An investigator identified a pattern linked to a business. The business' account received multiple even dollar deposits between midnight and 4:00 AM. They occurred each day for several days prior to the date of the sporting event. Also, large cash deposits, typically between 2,000 USD and 3,000 USD. made by a person to the business' account occurred in many branches in the days after the sports event.

There was little information about the company. The company did not have any history of employee payroll expenses or paying taxes. Expenses from the business account included air travel and hotel expenses. Searches about the person making cash deposits showed little. An online social media platform webpage with the individual's name showed ads for dates" and "companionship."

The Fl receives a keep open' letter from LE for the identified account and agrees to keep the account open. What is the Fl required to do?

Options:

A.

Contact the client for information relating to the account.

B.

Stop filing SAR/STR reports on the account and/or customer.

C.

Ensure that the request includes an end date.

D.

Notify LE immediately after new transactions.

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Question 2

According to the Financial Action Task Force, as part of their risk assessment, which are important data and information that a Trust and Company Service Provider must understand when establishing and administering a trust? (Select Two.)

Options:

A.

The responsibility and authority in the structure

B.

The management structure of the trust

C.

The source of funds in the structure

D.

The general purpose behind the structure

E.

The general nature of business of the trust

Question 3

A financial institution (Fl) receives an urgent request for information from the financial intelligence unit (Fl country. According to FATF recommendations, which is the best action for the FI to take?

Options:

A.

Request an official court subpoena with details of the investigation.

B.

Provide as much information as possible to the FIU immediately.

C.

Establish a committee from different areas of the Fl to determine if the request should be answered.

D.

Inform the public relations department to prepare for negative news.

E.

ling the financing of terrorism that could imply an imminenl threat in the

Question 4

The training department is conducting awareness training for unusual customer identification scenarios. Which two indicators should be included? (Select Two.)

Options:

A.

The customer opens the account in the name of a family member who begins making large deposits.

B.

The customer's name and home address cannot be verified

C.

The customer's internet protocol address does not match the identifying information provided during online registration.

D.

The customer requests payment of proceeds to an unrelated third party.

E.

The customer frequently exchanges small bills for large bills.

Question 5

When crafting internal procedures on writing and submitting SARs/STRs, one should:

Options:

A.

use internal keywords and standard industry terms to better provide context within which the suspicious activity was identified.

B.

consider the guidelines issued by the national financial intelligence unit {FIU) and local regulator and incorporate any country-specific requirements.

C.

include attachments with the SARs/STRs as all information needs to be at the disposal of the financial intelligence unit (FIU)

D.

adhere to home junsdiction guidelines across the whole group when local requirements of the country of operation and home jurisdiction conflict.

Question 6

In which case should an investigator avoid escalating a suspicious event to the chief compliance officer and pursue other channels?

Options:

A.

The transaction chain is likely connected to a known member of a terrorist organization.

B.

A close family member of the chief compliance officer is the beneficiary of a cross-border transfer.

C.

A trade entity engages in complex trade deals involving numerous third-party intermediaries in incongruent lines of business.

D.

An individual involved in a large sum transaction is a foreign PEP.

Question 7

Which test should be included in a bank's Office of Foreign Assets Control sanctions screening audit program?

Options:

A.

Reviewing wire transfer screening processes to ensure that potential name hits are investigated promptly

B.

Looking at copies of suspicious activity reports filed with regulators to ensure completeness

C.

Ensuring that all clients with foreign identification are subject to enhanced due diligence

D.

Examining Human Resources processes for conducting criminal background checks on executives

Question 8

Which might suggest misuse of crowdfunding resources by a terrorist?

Options:

A.

A small charge at a gas station followed by a large charge at an electronics store

B.

A large deposit followed by multiple charges at a sporting goods store

C.

Multiple small deposits followed by a wire transfer to a large well-known international charity

D.

Multiple small deposits followed by the purchase of airplane tickets >

Question 9

During onboarding al Private Bank A, client C indicated that the account would be initially funded with a transfer from Bank B totaling 50 million USD. On which source of funds should Bank A conduct additional scrutiny? (Select Two.)

Options:

A.

Client's verified employment income

B.

Third-party transfer

C.

Client's overall wealth

D.

Transfer from Bank B

E.

Documented sale of client properties

Question 10

A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?

Options:

A.

The provision of remote check deposit services

B.

The provision of cash services

C.

The provision of payable through accounts

D.

The provision of brokerage services

Question 11

Which statement most accurately characterizes the methods used by transnational criminal organizations?

Options:

A.

They are unlikely to associate with known terrorist organizations due to the reputational risks.

B.

They are likely to specialize in one particular method and continue to refine that method to escape detection.

C.

They routinely engage in many different types of criminal activities as long as they think it will benefit them.

D.

They see each other as competitors and rarely cooperate.

Question 12

A financial institution might use which option as intelligence to file a SAR/STR?

Options:

A.

A customer makes several deposits in one month that appear to exceed their expected monthly income.

B.

A customer receives a large, one-time wire from a law firm.

C.

The Fl is unable to obtain evidence of required licensing or registration despite suspicion of money transmitting.

D.

The Fl discovers a large number of securities transactions that appear to be related to day trading.

Question 13

Which information is it best practice to share at the very beginning of a well-written SAR/STR narrative?

Options:

A.

A specific description of the involved accounts and transactions, including the origination and application of funds

B.

The purpose of the SAR/STR narrative and a general description of the known or alleged violation

C.

Information about any follow-up actions conducted by the financial institution on the account

D.

Any and all relevant facts about the parties who facilitated the suspicious activity or transactions

Question 14

An investigator is reviewing an alert for unusual activity. System scanning detected a text string within a company customer's account transactions that indicates the account may have been used for a drug or drug paraphernalia purchase Based on the KYC profile, the investigator determines the customer's company name and business type are marketed as a gardening supplies company. The investigator reviews the account activity and notes an online purchase transaction that leads the investigator to a website that sells various strains of marijuana. Additional account review detects cash deposits into the account at the branch teller lines, so the investigator reaches out to the teller staff regarding the transactions. The teller staff member reports that the business customers have frequently deposited cash in lower amounts. The teller, without prompting, adds that one of the transactors would occasionally smell of a distinct scent of marijuana smoke.

Which are the best next steps for the investigator to take? (Select Three.)

Options:

A.

Review the customer's transaction history.

B.

Request information from the internet service provider who hosts the website.

C.

Check internal KYC information.

D.

Research other customer accounts for transactions to the same website.

E Conduct adverse media and open-source searches on the customer's background.

E.

Identify if the customer has opened accounts in an urban city area.

Question 15

As part of an internal fraud investigation, an AML officer has decided to interview an employee. Which statement is most consistent with best practices?

Options:

A.

Information on the employee can be gathered from coworkers and supervisors before the employee is interviewed.

B.

Prior to the interview, the investigator should inform the employee about the allegations.

C.

The employee should be supplied with all information about any ongoing fraud investigations.

D.

The employee should be notified that failing to cooperate can lead to loss of employment.

Question 16

An investigator is reviewing a case generated from the transaction monitoring system, with two large amounts of incoming remittance (IR) to an individual customer. Based on the KYC profile, the customer is a plant manager of a famous multi-national electronics manufacturing firm. As the customer has no similarly large transaction patterns for the past 2 years, the investigator sends an inquiry to the relationship manager (RM) about the nature of the transaction. The RM replies that the transaction is a consultancy fee provided from two different electronics companies with a debit note provided However, there is no detail of service provided on the debit note, and the remitters are two individuals.

Which actions should the investigator recommend to mitigate risk? (Select Two.)

Options:

A.

Exit the relationship with the customer.

B.

Document and maintain a file with the investigative findings.

C.

Discuss the investigation findings with the customer.

D.

Conduct enhanced due diligence.

E.

Re-evaluate the customer risk profile.

Question 17

An EU bank account received 1.8 million EUR from a Swiss bank. The EU bank determines the originator was indicted by U.S. law enforcement, arrested in Switzerland, and extradited for alleged insider trading. Which is the best reason the EU bank should file a SAR/STR?

Options:

A.

The originator was indicted by U.S. law enforcement.

B.

Insider trading is a predicate offense in the U.S. and Switzerland.

C.

The events raise concerns that the payment represents proceeds from insider trading.

D.

The Swiss bank filed a SAR/STR with the Money Laundering Reporting Office Switzerland.

Question 18

Potentially suspicious activity following an increase in the volume of transactions by an import company included outgoing wires to Indonesia and Uganda referencing invoice numbers. Incoming funds included large cash deposits and checks/wires from pet stores, breeders, and private individuals. What financial crime might the bank reference in the SAR/STR?

Options:

A.

Tax evasion scheme

B.

International drug trafficking

C.

Illegal wildlife trade

D.

Black market peso exchange

Question 19

Law enforcement agents arrive at a broker-dealer's premises with a search warrant. In addition to cooperation with the warrant, which instructions should the person in charge of the broker-dealer provide to their employees?

Options:

A.

Take notes on the questions and comments made by the agents.

B.

Sign consent forms permitting the agents to search employees' offices.

C.

Provide agents with unlimited access to customers' personal data.

D.

Volunteer information not requested by the agents that the employees think may be useful.

Question 20

A KYC specialist from the first line of defense at a bank initiates an internal escalation based on a letter of credit received by the bank.

MEMO

To: Jane Doe. Compliance Manager, Bank B From: Jack Brown, KYC Specialist, Bank B RE: Concerning letter of credit

A letter of credit (LC) was received from a correspondent bank. Bank A. in Country A. in Asia with strict capital controls, providing guarantee of payment to Bank B's client for the export of 10 luxury cars located in Country B. located in Europe. Bank A's customer is a general in the army where Bank A is headquartered.

The information contained in the LC is as follows:

• Advising amount per unit 30.000.00 EU •10 units of BMW

• Model IX3

• Year of registration: 2020

Upon checks on Bank B's client, the exporter mentioned that the transactions were particularly important, and a fast process would be much appreciated in order to avoid reputational damage to the firm and the banks involved in the trade finance process. The exporter has a longstanding relationship with Bank B and was clearly a good income generator. The exporter indicated that, as a general, the importer was trustworthy.

The relationship manager

Feedback from the RM:

The RM contacted the exporter for a client courtesy visit, but it was rearranged four times as the exporter kept cancelling the appointments. When the exporter was finally pinned down for an interview, employees were reluctant to provide clear answers about the basis of the transaction. The employees were evasive when asked about the wider business and trade activity in the country.

Findings from the investigation from various internal and external sources of information:

• There were no negative news or sanctions hits on the exporter company, directors, and shareholders.

• The registered address of the exporting business was a residential address.

• The price of the cats was checked and confirmed to be significantly below the market price of approximately 70,000 EU, based on manufacturer's new price guide.

• The key controllers behind the exporting company, that is the directors and

During the investigation, the investigator determines that a nephew of the general.....

Options:

A.

should be treated well to avoid reputational damage to the bank

B.

is a high-net-worth individual

C.

should be flagged as a senior PEP.

D.

is a trustworthy source.

Question 21

A country that does not have strong predicate offenses and is lax in prosecuting AML cases could suffer which social/economic consequence?

Options:

A.

US sanctions

B.

Increased organized crime and corruption

C.

Reputation risk for the port

D.

Loss of tax revenue

Question 22

An analyst reviews an alert for high volume Automated Clearing House (ACH) activity in an account. The analyst's initial research finds the account is for a commercial daycare account that receives high volumes of large government-funded ACH transactions to support the programs. The account activity consists of checks (cheques) made payable to individual names in varying dollar amounts. One check indicates rent to another business.

An Internet search finds that the daycare company owner has previous government-issued violations for safety and classroom size needs, such as not having enough chairs and tables per enrollee. These violations were issued to a different daycare name.

Simultaneous to this investigation, another analyst sends an email about negative news articles referencing local child/adult daycare companies misusing governmental grants. This prompts the financial institution (Fl) to search all businesses for names containing daycare' or 'care1. Text searches return a number of facilities as customers at the Fl and detects that three of these businesses have a similar transaction flow of high volume government ACH funding with little to no daycare expenses.

During the investigation, it was determined that some of the checks were issued to a mother-in-law of a PEP and deposited into her account with the Fl. This customer was not found on the Fl's PEP list How should the investigator proceed in this situation"? (Select Two.)

Options:

A.

Conduct the investigation as usual, since the activity in question is not directly connected to the PEP.

B.

Reter the newly identified customers account for closure due to the high risk associated with the potential PEP.

C.

Use this case as an example to train employees to recognize potential PEPs during their investigation process.

D.

Send a referral to Sanctions/List Screening, or similar department/responsible individual, to ensure that the customer due diligence information is up to date.

E.

File a SAR/STR due to the potential involvement of a PEP.

Question 23

A new customer has just been onboarded in a securities firm. After a few weeks, there are unusual trading patterns that are being flagged. Which pattern is most concerning to the compliance officer?

Options:

A.

The customer engages in large trading in securities that are liquid or highly priced from the trading account.

B.

The customer's repeated trading in securities that are low priced and low volume counters.

C.

The customer receives many incoming wire transfers from related parties to the trading account.

D.

The customer accumulates securities of a low volume counter in small increments on a weekly basis.

Question 24

The intended benefits of section 314(b) of the USA PATRIOT Act include: (Select Three.)

Options:

A.

sharing the existence and content of SARs/STRs with other participating FIs.

B.

participating FIs sharing information about suspicious activity by customers that may have otherwise gone unnoticed.

C.

providing mandatory results to law enforcement agencies so that they can more easily obtain useful information.

D.

expediting the filing of SARs/STRs due to the information sharing facilitated by 314(b).

E.

detecting money laundering and TF approaches and schemes across multiple financial institutions (FIs).

F.

obtaining additional information on customers or transactions regarding potential money laundering or terrorist financing (TF).

Question 25

A client with many personal and business deposits with the financial institution (Fl) seeks a business loan. The client wants to guarantee the loan with a trust for which they are the beneficiary.

An investigator examines the trust. The trust has many layers, including shell companies in known tax havens. The client's ultimate beneficial ownership claim cannot be validated, and the loan is denied.

Two months later, the Fl receives a law enforcement (LE) request on one of the client's business accounts. While reviewing the business account, the Fl receives another LE request on the same account from another agency. The requested information is shared.

Three months later, a branch manager receives a request to open a business deposit account related to a complex trust. The manager forwarded the request because of the complexity. The trust was the same as the previously examined trust, but the request came from a different client. The second client also has many accounts with the Fl. Further inspection finds links between the second client and the Paradise Papers. The Papers state the client led illegal activities and committed tax evasion.

What steps should the investigator take to review the accounts held by the second client who is listed in the Paradise Papers? (Select Two.)

Options:

A.

Recommend a SAR/STR be filed regarding the second client's use of a questionable trust to open an account.

B.

Review all accounts being reviewed by AML investigators over the past year that have opened trust accounts.

C.

Inform Fl management of deficiencies in their AML program because the second client's activities were not detected.

D.

Monitor all accounts and entities related to the second client

E.

Inform Fl management of the start of a serious risk-based investigation that could result in losses and reputation risk.

Question 26

During a review, an analyst notices discrepancies between a customer's nature of business listed on the business registry and what was stated on the customers application. The analyst should:

Options:

A.

clarify discrepancies noted in the customer's declared profile given the downstream impact on the risk assessment.

B.

close the review as there is no adverse news in the public domain.

C.

review all documents for whether certified true copies are submitted.

D.

accept discrepancies in the information given the onboarding team did not flag any issue.

Question 27

A compliance officer of a financial institution is reviewing a payment for sanctions compliance between two parties in Europe and Asia. The payment is in Euros and involves the provision of services to a company located in a jurisdiction subject to Office of Foreign Assets Control secondary sanctions. Which factor is most important in determining the compliance officer's response?

Options:

A.

Asset freezes only prohibit US companies from engaging in certain activities with counterparts from a sanctioned jurisdiction.

B.

A one-off commercial transaction conducted between parties in Europe and Asia is not subject to secondary sanctions.

C.

The threat of US sanctions against foreign individuals and entities continues to exist despite the absence of a US nexus.

D.

Secondary sanctions only target specific sectors of the economy such as the banking and finance sectors.

Question 28

CLIENT INFORMATION FORM Client Name: ABC Tech Corp Client ID. Number: 08125 Name: ABC Tech Corp Registered Address: Mumbai, India Work Address: Mumbai, India Cell Phone: "*•"'" Alt Phone: "*""* Email: ........"

Client Profile Information:

Sector: Financial

Engaged in business from (date): 02 Jan 2020 Sub-sector: Software-Cryptocurrency Exchange Expected Annual Transaction Amount: 125,000 USD Payment Nature: Transfer received from clients’ fund

Received from: Clients

Received for: Sale of digital assets

The client identified itself as Xryptocurrency Exchange." The client has submitted the limited liability partnership deed. However, the bank's auditing team is unable to identify the client's exact business profile as the cryptocurrency exchange specified by the client as their major business awaits clearance from the country's regulator. The client has submitted documents/communications exchanged with the regulator and has cited the lack of governing laws in the country of their operation as the reason for the delay.

During the financial crime investigation, the investigator discovers that some of the customer due diligence (CDD) documents submitted by the client were fraudulent. The investigator also finds that some of the information in the financial institution's information depository is false. What should the financial crime investigator do next?

Options:

A.

Report collusion between the cryptocurrency exchange and internal staff in the internal hotline or whistle-blowing channel.

B.

Request that the relationship manager conduct a CDD refresh as it is a material trigger.

C.

Escalate to the compliance officer/money laundering reporting officer to file a SAR/STR.

D.

Contact the client directly and obtain the relevant notarized documents and information.

Question 29

Which scenarios are common to money laundering through online marketplaces and trade-based money laundering? (Select Two.)

Options:

A.

Over-valuation of the stated price of goods

B.

Use of fraudulent letters of credit

C.

No evidence of delivery of goods or shipping expenses

D.

Frequent conversion of foreign currency

E.

Use of multiple freight forwarding or export companies

Question 30

An AML investigator at a bank identifies an unusually high number of deposits from a few customers resulting from the encashment of multiple gambling tickets from a legitimate gambling company. It is noted that the transactions are inconsistent with the customers' profiles and that reverse (corrective) transactions did not occur. Which suspicious activity is most likely?

Options:

A.

The winning tickets are traded to criminals who. in turn, use the customers' accounts.

B.

The gambling company created fictitious transactions in an attempt to misrepresent the size of its business activity.

C.

The customers are attempting to evade income tax.

D.

The customers deposited fake winning tickets.

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Total 101 questions