ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition)

QUESTION NO: 1
Why should AML monitoring thresholds be periodically reviewed?

A. Monitoring systems cannot produce false positives B. Regulators prohibit threshold adjustments C. Regulations and customer risks may change over time D. Thresholds never affect alert quality

Correct Answer: C

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QUESTION NO: 2
Assessing the money laundering risk related to a product within the financial sector includes assessing the: (Select Two.)

A. complexity of the products B. governance arrangements C. financial status of the business D. results of the last audit

Correct Answer: A,B

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QUESTION NO: 3
An AML analyst at a financial institution is examining an alert generated by the automated transaction monitoring system to determine whether the alert should be escalated to the AML unit for further investigation or whether it can be archived as a false positive. Which action might be reasonable for the AML analyst to take?

A. Perform below-the-line testing to ensure the automated monitoring system is operating effectively B. Request information from the relationship manager assigned to the account that caused the alert C. Send a request for information to the counterparty bank involved in the transaction that caused the alert D. Restrict the client's access to the account

Correct Answer: B

QUESTION NO: 4
One key aspect of promoting an enterprise-wide compliance culture within a financial institution is that the:

A. Cost of compliance should increase proportionately to revenues. B. Relevant information should be shared throughout the organization. C. Revenue-generating business sectors should have precedence over compliance. D. First line of defense should establish its own policies independently.

Correct Answer: B

QUESTION NO: 5
Which scenario best justifies why a customer's account might be closed by a financial institution?

A. The customer is the object of a civil subpoena. B. The account has transactions that triggered multiple suspicious activity reports. C. The customer uses a shipping company dealing with specially designated nationals. D. The account shows periodic fixed amount remittances for tuition fees.

Correct Answer: B

QUESTION NO: 6
A compliance officer at a large bank has been tasked with investigating a series of unusual transactions involving a long-time customer. The customer has made several large cash deposits into multiple accounts within a short period, raising red flags. After gathering and analyzing transaction data, reviewing customer records, and cross-referencing external sources, the compliance officer determines that there is a reasonable suspicion of money laundering. As part of documenting this investigation, the compliance officer must decide how and when to escalate the matter internally and whether to file a suspicious activity report (SAR). What is the next critical step in this process?

A. Immediately escalate the case to senior management, recommending the closure of the customer's accounts due to potential reputational risk. B. Draft a SAR that includes a detailed chronology of the transactions, customer background and the rationale for suspicion, and submit it to the relevant financial intelligence unit (FIU) within the regulatory timelines. C. Report the investigation to external auditors and await further guidance before taking any action. D. Document the customer's transaction history and keep the investigation confidential until further suspicious activity is detected.

Correct Answer: B

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QUESTION NO: 7
During which process must a country demonstrate to the Financial Action Task Force (FATF) that it has an effective framework to protect the financial system from abuse?

A. Technical analysis B. Formal assessment C. Mutual evaluation D. Regulatory overview

Correct Answer: C

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QUESTION NO: 8
Under the Egmont Group Principles, information exchange among financial intelligence units (FIUs) should be conducted:

A. Freely, spontaneously, and upon request, on the basis of reciprocity. B. Only if the status of the foreign FIU is related to law enforcement. C. Without the expectation of reciprocity on how the information will be used. D. With set limits on the amount of financial and administrative information provided.

Correct Answer: A

QUESTION NO: 9
Which characteristic of accountants is most attractive to those looking to launder funds using an accountant or accountancy firm?

A. Accountants are able to create and structure companies, falsify accounts and manipulate financial statements B. Accountants are knowledgeable about financial management, including what to record over the course of the accounting year C. Accountants can prepare ledgers and spreadsheets, draft annual returns and make payments to government offices D. Accountants can advise on the structuring of companies as well as ensure compliance with local tax regulations

Correct Answer: A

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ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) - CAMS7 Exam Questions