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Complete CAMS ACAMS Materials

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Total 860 questions

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

Question 37

According to the Financial Action Task Force, which action must a financial institution take to fulfill customer due diligence obligations?

Options:

A.

Secure a written declaration from the customer confirming the source of the funds.

B.

Obtain information on the intended nature of the banking relationship.

C.

Identify shareholders listed on the stock exchange of corporate entities holding fifty percent of the shares.

D.

Verify the customer is not on any sanction lists.

Question 38

The product department of an insurance company proposes launching aspecial life insurance productwith investment elements that allow clients toinstruct payments to unknown third partiesvia partner financial institutions. The product department seeksfast-track approvalfrom compliance to ensure quick market launch.

What is the best course of action from a compliance perspective?

Options:

A.

Do not sign off on the product because it contains the option to make payments to unknown third parties, which carries a high money laundering risk.

B.

Sign off on the product because client KYC is complete, and unknown individuals can be added or removed throughout the duration of the contract.

C.

Do not sign off on the product because the compliance department was not involved from the beginning of the product development process, which is a severe governance violation.

D.

Sign off on the product quickly to gain a competitive advantage while evaluation by compliance can be completed later.

Question 39

Which of the following are considered best practices for effective AML/CFT training programs? (Select Three.)

Options:

A.

Training should cover practical examples, use case studies, and provide information on how to comply with policies.

B.

Up-to-date records including logs of training and completion dates should be maintained.

C.

Training should be broad, high level, and not role-specific in order to reach the largest audience.

D.

Training should cover the consequences of not complying with policies and procedures.

E.

Training should always be provided by an independent third party.

Question 40

Anewly appointed senior money laundering reporting officer (MLRO)at adigital bankhas been instructed toimplement an effective AML transaction monitoring system.

What areimportant considerationsfor selecting and implementing the AML system? (Select Two.)

Options:

A.

Whether the monitoring system is adequate with respect to the bank's size, activities, complexity, and risks.

B.

Whether the vendor has documented appropriate internal controls for designing the system and data integration schema.

C.

Whether the permissions and user access settings for reviewing, investigating, and reporting details of alerts generated by the system are commensurate with those in use at other banks.

D.

Whether the monitoring system can be configured to enable the bank to execute trend analysis of transaction activity and to identify unusual business relationships and transactions.

Page: 10 / 65
Total 860 questions