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ACAMS CAMS Questions Answers

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Total 860 questions

Certified Anti-Money Laundering Specialist (the 6th edition) Questions and Answers

Question 145

Why do organized crime groups often use front companies? (Choose two).

Options:

A.

Because they are not registered, front companies are not subject to income and other sales taxes.

B.

Because using multiple front companies can make it easier to control an entire sector of the economy.

C.

Because they are generally subject to lighter due diligence requirements by banks and other financial services providers.

D.

Because front companies generally charge higher prices than legitimate companies, so profit margins are higher.

E.

Because they can use the company's bank accounts to comingle deposits with those of legal businesses.

Question 146

Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

Options:

A.

A local wealthy individual wants to become a customer of a local retail bank.

B.

A beneficial owner of an exchange house wants to open an account with the bank.

C.

A wealthy individual from a high-risk country wants to open an account with a private bank.

D.

A new customer asks to set up an exchange house using the bank as the correspondent.

Question 147

An international bank is headquartered in Madrid, Spain, with an office in New York City (NYC), US. The Madrid office is investigating a transaction originating from a customer of the NYC office and inquires whether the NYC office can share any relevant further information on the individual. Upon further research, the NYC office finds that they have filed a Suspicious Activity Report (SAR) on the individual in the previous year.

Which factors need to be considered before sharing the requested information? (Select Two.)

Options:

A.

The bank should consider jurisdictional privacy requirements and its own policies and procedures to determine what information to share.

B.

The information should only be shared on a need-to-know basis.

C.

The bank should report this to the Financial Crimes Enforcement Network (FinCEN) and receive formal guidance before sharing the information.

D.

The foreign bank must always request approval by its national anti-financial crime authority to share any information cross-border.

Question 148

Which two steps should a financial institution take when it receives a law enforcement request to keep an account open that may be associated with suspicious or criminal activity? (Choose two.)

Options:

A.

File a suspicious transaction report on the account owner(s)

B.

Maintain account records for at least five years after the request expires

C.

Ask for a written request from the law enforcement agency that defines the duration

D.

Stop filing suspicious transaction reports because law enforcement will be monitoring the account

Page: 37 / 65
Total 860 questions