|Exam Name||:||Certified Anti-Money Laundering Specialist (6th edition)|
|Questions and Answers||:||326 Q & A|
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Question #179 Section 2
Which three definitions of money laundering are included in the expanded definition of the European Union Fourth Directive? (Choose three.)
The creation of shell companies to disguise the identity of its owners
The conversion or transfer of property with knowledge that it is derived from criminal activity
The acquisition or use of property knowing, when it was received, that it was derived from criminal activity
The transfer of cash in excess of 15,000 euros across country borders regardless of whatever the cash was derived from criminal activity
Concealing or disguising the nature, source, location, disposition, movement, rights with respect to, or ownership of property, knowing that the property is derived from criminal activity
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Question #180 Section 2
What does the Financial Action Task Force (FATF) urge its members and all other jurisdictions to do when a jurisdiction is identified as having lax anti-money laundering / counter financing of terrorism controls?
Apply counter-measures to that jurisdiction
Consider customers from that jurisdiction as high risk
Cease doing business with that jurisdiction immediately
Apply economic sanctions until otherwise notified by FATF
Question #181 Section 2
How can violations of anti-money laundering laws be a risk to individuals?
Violations can result in civil and criminal fines and penalties against the individuals.
Violations can result in additional legislation that the individuals have to comply with.
Violations can result in enforcement actions that damage the reputation of the individual's employer.
Violations can result in additional and more stringent anti-money laundering training for individuals.
Question #182 Section 2
The new compliance officer has reviewed the bank's anti-money laundering training program. The program consists of online training for all new employees within 30 days of hire date and annual refresher training to all employees. In addition, there is specialized training for areas that deal with higher risk products and customers.
Over the last year, there have been no regulatory changes and no new products or services have been introduced. The compliance officer wants to propose to the board of
directors that the annual refresher training is still current and can be delivered unchanged to all employees. Which two critical pieces of information could be missed by taking this approach? (Choose two.)
Any new trends, developments, or risks
Results of the previous year's risk assessment
Changes to internal policies, procedures, and processes
Links to enforcement actions identifying violations in other financial institutions
Question #183 Section 2
A compliance officer receives a report from the institution's monitoring system. One account was identified in multiple alerts for the amount of cash deposited and international wires sent.
Which two sources of information held within the institution will enable the compliance officer to determine whether the activity should be reported? (Choose two.)
The signature card for the account
The customer due diligence information on file
The monitoring system parameters for identifying unusual activity
Transaction records for the period during which the unusual activity occurred
Question #184 Section 2
A compliance officer is reviewing the activity of the wire transfer department for the previous month and identifies an unusual wire transfer from a customer's account. Which information should be included in the review of the customer's activity?
Records of the recent deposit activity
Wire transfer requests initiated by phone and internet
Total number of wires processed each month over the previous year
Whether the bank processes wire transfers through a correspondent bank
Question #185 Section 2
A startup virtual currency exchange has registered as a money services business and will commence operations in six months. The company will provide digital wallets to customers to hold their virtual currency after purchase. Customers will have the option to conduct purchases of the virtual currency and transfer the currency to and from the digital wallet. The startup must develop an anti-money laundering compliance program prior to launch.
Which two anti-money laundering responsibilities should be considered before business launch? (Choose two.)
A customer onboarding process
Transaction limits consistent with risk appetite
Employees to handle complaints in a timely fashion
Mechanisms to monitor and protect customers' digital wallets from cyber-attacks
Question #186 Section 2
A bank maintains a number of United States (U.S.) dollar correspondent accounts for foreign financial institutions. Upon a routine review of a U.S. dollar correspondent account owned by Foreign Bank A, a number of transactions appear to have been originated by Foreign Bank B outside the expected activity for this account. These transactions appear suspicious and a suspicious transaction report was filed by the compliance officer.
Which step should the compliance officer take?
File a report with the appropriate tax authorities in the jurisdictions of Foreign Bank A and Foreign Bank B
Notify senior management of the money laundering risks by allowing Foreign Bank A to maintain its U.S. dollar correspondent account
Notify Foreign Bank A of the discovery and seek documentation supporting Foreign Bank A was collusive and a willing partner with Foreign Bank B in the
Notify other U.S. financial institutions who maintain U.S. dollar correspondent accounts for Foreign Bank A and Foreign Bank B in an effort to shut down the activity
Question #187 Section 2
A New York-based lawyer is interested in purchasing a luxury condo in Manhattan listed at $30 million for a client based in the Caribbean.
The client does not want to be named on the deed and wants the purchase to be made under the name of a limited liability company (LLC). The client states that the reason for this arrangement is that he is a high level government official who is concerned about his privacy if the purchase were to be made in his name.
The funds for the purchase are to be wired from several accounts in various countries.
Which two facts lead to gathering more information about this potential client before moving forward with the transaction? (Choose two.)
The client is from a Caribbean country
The use of an LLC to make the purchase
The client is a high level government official
The funds are coming from several accounts in various countries.
Question #188 Section 2
The local manager of a remote mortgage origination department of a financial institution has just discovered that sanctions screening of new customers is not being performed.
Which action should the local manager take in this situation?
Start screening new customers
Immediately inform the regulators
Immediately inform senior management
Do nothing because the department only handles a very small number of mortgages
Question #189 Section 2
What are two aspects of the Wolfsberg Anti-Money Laundering (AML) Principles for Correspondent Banking? (Choose two.)
At least one person, aside from the person sponsoring the relationship, should approve the correspondent relationship.
Correspondent banking is an inherently high risk business and all correspondent bank relationships should be reviewed on an annual basis.
Factors such as politically exposed person involvement and downstream (nested) correspondents increase the risk inherent in a correspondent relationship.
An Institution may assign a low risk rating to a correspondent bank located in a jurisdiction deemed to have an adequate AML environment (e.g., Financial Action Task Force member country) without needing to consider other factors.
Question #190 Section 2
A financial institution has expanded its scope of services so that it is attracting the business of politically exposed persons (PEPs) who had previously never been part of the customer base.
Which two courses of action should the compliance officer include in the institution's procedures for considering PEPs as customers? (Choose two.)
Conduct enhanced ongoing monitoring of the business relationship
Expedite due diligence when a PEP is pre-approved by a member of senior management
Obtain appropriate senior management approval for establishing a business relationship with a PEP from a high risk country
Take adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction