Pass Advanced-CAMS-Audit Exam Guide

Product Risk: Certain products (e.g., high-value transfers, anonymous payment systems) inherently carry higher AML risks and require tailored risk mitigation measures.

Customer Risk: Understanding the risk profile of customers, including PEPs and high-net-worth individuals, is critical to assessing exposure and implementing risk-based approaches.

Both factors are core components in AML risk assessments, as highlighted in CAMS-Audit materials and FATF standards​​​.

Selecting an Audit Firm:

The scope and expertise of the audit firm must align with the institution's risk profile and regulatory requirements to ensure the audit's effectiveness.

Best Practices in Outsourced Audits:

Properly scoping and selecting auditors with relevant AML/CFT experience ensures compliance and minimizes operational risks.

CAMS-Audit Guidance:

Advanced CAMS-Audit emphasizes the importance of tailoring audit scopes and selecting experienced auditors for outsourced engagements​​.

Recommended Action:

Re-screening ensures compliance with sanctions and identifies potential violations retrospectively. This is a critical regulatory requirement for addressing gaps in screening coverage​​.

FATF and Basel Guidelines:

Emphasize retrospective reviews in cases of system lapses to maintain the integrity of the sanctions compliance program​​.

A:Regularly updating lists of high- and medium-risk countries ensures that customer risk profiles align with the most current geopolitical and economic risks​​.

E:Periodic updates to customer risk profiles, based on their assigned risk level, are critical for maintaining an accurate and dynamic risk assessment system​​.