Acams CAMS-FCI Exam Practice Test Instant Access

Question 1

Which test should be included in a bank's Office of Foreign Assets Control sanctions screening audit program?

AReviewing wire transfer screening processes to ensure that potential name hits are investigated promptly

BLooking at copies of suspicious activity reports filed with regulators to ensure completeness

CEnsuring that all clients with foreign identification are subject to enhanced due diligence

DExamining Human Resources processes for conducting criminal background checks on executives

Answer : C

The OFAC sanctions screening audit program should include the requirement that all clients with foreign identification are subject to enhanced due diligence, as this provides an extra layer of protection against potential violations of OFAC sanctions.

Question 2

An EU bank account received 1.8 million EUR from a Swiss bank. The EU bank determines the originator was indicted by U.S. law enforcement, arrested in Switzerland, and extradited for alleged insider trading. Which is the best reason the EU bank should file a SAR/STR?

AThe originator was indicted by U.S. law enforcement.

BInsider trading is a predicate offense in the U.S. and Switzerland.

CThe events raise concerns that the payment represents proceeds from insider trading.

DThe Swiss bank filed a SAR/STR with the Money Laundering Reporting Office Switzerland.

Answer : C

The best reason the EU bank should file a SAR/STR is that the events raise concerns that the payment represents proceeds from insider trading, which is a form of market abuse and a predicate offense for money laundering in many jurisdictions. The fact that the originator was indicted by U.S. law enforcement, arrested in Switzerland, and extradited for alleged insider trading indicates that there is a strong suspicion that the funds are derived from criminal activity. The other options are not sufficient reasons to file a SAR/STR, as they do not directly relate to the nature or source of the funds.

Question 3

Potentially suspicious activity following an increase in the volume of transactions by an import company included outgoing wires to Indonesia and Uganda referencing invoice numbers. Incoming funds included large cash deposits and checks/wires from pet stores, breeders, and private individuals. What financial crime might the bank reference in the SAR/STR?

ATax evasion scheme

BInternational drug trafficking

CIllegal wildlife trade

DBlack market peso exchange

Answer : C

The best reason the EU bank should file a SAR/STR is that the events raise concerns that the payment represents proceeds from illegal wildlife trade, which is a serious financial crime and a predicate offense for money laundering in many jurisdictions3. The fact that the incoming funds came from pet stores, breeders, and private individuals suggests that the import company may be involved in smuggling or trafficking endangered or protected animals or their parts4. The outgoing wires to Indonesia and Uganda, which are known source countries for wildlife trafficking, may indicate payments to suppliers or facilitators of this illicit activity.

Question 4

A SAR/STR regarding money-mule activity prompts law enforcement action. Under U.S. law, the alleged money mules can be prosecuted:

Aonly if they were aware of their role and actively participated.

Bin a country only if funds were transferred between accounts maintained in the same country.

Cunless they can prove they were not aware of the origin of the funds.

Deven if they were unaware that money was transferred.

Answer : D

According to U.S. law, money mules can be prosecuted even if they were unaware that money was transferred, as long as they acted with reckless disregard of the source of the funds or the purpose of the transaction1. This is because money mules are considered to be aiding and abetting money laundering, which does not require proof of specific intent2.

Question 5

A government entity established a trust to provide social welfare programs. The entity wants cash payments made to persons without supporting documentation. These persons would oversee the allocation of funds to beneficiaries without complying with internal disbursement of government funds controls. Which is the main premise for filing a SAR/STR?

ATrust service providers are not obliged by law to follow government internal controls.

BCash disbursements are not allowed for social welfare programs.

CSocial welfare programs are difficult to document because the beneficiaries are from the informal sector.

DThe entity is not implementing adequate internal controls according to what is expected, and mishandling of funds could be occurring.

Answer : D

The main premise for filing a SAR/STR is that the entity is not implementing adequate internal controls according to what is expected, and mishandling of funds could be occurring. This raises suspicion that the entity may be involved in corruption, fraud, or diversion of funds for illicit purposes. Trust service providers are obliged by law to follow government internal controls, as they are subject to AML/CFT regulations and supervision. Cash disbursements are allowed for social welfare programs, but they should be properly documented and verified. Social welfare programs are not necessarily difficult to document, as there are ways to identify and monitor the beneficiaries, such as biometric data or unique identifiers.

Question 6

A financial institution (Fl) has considered the available relevant factors in a transaction and has determined it will file a SAR^STR. Which is needed to support the contents of the report to the financial intelligence unit?

ADefinitive proof that suspicious activity occurred

BEnough circumstantial evidence about the suspicious activity for a criminal proceeding

CNo factual description of the suspicious activity

DLow evidentiary threshold about the suspicious activity

Answer : D

A SAR/STR does not require definitive proof or enough circumstantial evidence of suspicious activity, as these are high evidentiary thresholds that may be difficult or impossible to obtain by the FI. A SAR/STR should include a factual description of the suspicious activity, as this is essential for the FIU to analyze and disseminate the information. A low evidentiary threshold means that the FI has reasonable grounds to suspect that the activity is related to money laundering, terrorism financing, or other financial crimes, based on the available relevant factors. This is the main criterion for filing a SAR/STR.

Question 7

A client at a financial institution deposits large amounts of money into an account, and almost immediately, the funds are then distributed to numerous individuals' accounts. The transaction activity described in the scenario is a pattern of:

Ageographic usage.

Bdeposit trading.

Csafe deposit custody.

Daccount usage.

Answer : B

Deposit trading is a pattern of suspicious activity where a client deposits large amounts of money into an account, and then transfers the funds to other accounts, often in different jurisdictions or countries. This could be an attempt to disguise the source or destination of the funds, or to avoid reporting requirements. Deposit trading is also known as layering, which is the second stage of money laundering.

Acams CAMS-FCI Advanced CAMS-Financial Crimes Investigations Exam Practice Test