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AML Certification CAMS ACAMS Study Notes

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Total 772 questions

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

Question 73

The Board of Directors for a small private bank has asked the management to no longer apply the identity requirements for high net worth individuals to protect their privacy. Which of the following Financial Action Task =once 40 Recommendations should cause an anti-money laundering specialist the most concern?

Options:

A.

Financial institutions should not warn their customers when information relating to them is being reported to the competent authorities.

B.

Financial institutions should not keep anonymous accounts.

C.

Financial institutions should maintain all necessary suspicious transaction report records on transactions, both domestic are international, for at least 5 years.

D.

If financial institutions suspect that funds stem from criminal activity, they should be required to close the account.

Question 74

Which three statements are true about on-line banking offering a significant money laundering risk to a financial institution?

Options:

A.

The nature of on-line banking can make it difficult to establish who is controlling the account

B.

The ease of access through the internet enables cross border movement of funds

C.

Due to client confidentiality, information collected on-line cannot be shared with law enforcement agencies on mere suspicion

D.

The speed of electronic transaction enables execution of multiple complex transactions within short time frame

Question 75

Outgoing foreign transactions of similar amounts trigger a monitoring alert for a customer's accounts. During the evaluation of the accounts, the bank discovers the wire transfers were very small amounts and occurred within the last 3 months following a long period of inactivity. The wire transfers appear to originate from legal sources. To assess the potential of terrorist financing, the institution must ensure the

Options:

A.

account holder presents proof the funds are legal.

B.

beneficiaries of transfers are not on a terrorist watch list.

C.

beneficiaries of transfers are not included on the Transparency International List.

D.

account holder does not reside in a country included on the U.S. State Department State Sponsors of Terrorism List.

Question 76

An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legalrequest with the customer. The account officer intends to discuss points related to the investigation during the meeting.

What should an anti-money laundering specialist recommend?

Options:

A.

Discuss all the points being investigated by law enforcement to ensure the correspondent bank is well prepared when approached

B.

Let the account manager’s manager know what conversations have taken place with the customer and document the account file accordingly

C.

Limit discussions about the investigation with the customer and by satisfied that the account manager has provided proper notice to the customer

D.

Cancelled the meeting as he has already behaved inappropriately by alerting to the investigation

Page: 19 / 58
Total 772 questions