Acams CAMS-FCI Exam Practice Test Instant Access

Question 1

A compliance officer of a financial institution is reviewing a payment for sanctions compliance between two parties in Europe and Asi

a. The payment is in Euros and involves the provision of services to a company located in a jurisdiction subject to Office of Foreign Assets Control secondary sanctions. Which factor is most important in determining the compliance officer's response?

AAsset freezes only prohibit US companies from engaging in certain activities with counterparts from a sanctioned jurisdiction.

BA one-off commercial transaction conducted between parties in Europe and Asia is not subject to secondary sanctions.

CThe threat of US sanctions against foreign individuals and entities continues to exist despite the absence of a US nexus.

DSecondary sanctions only target specific sectors of the economy such as the banking and finance sectors.

Answer : C

The threat of US sanctions against foreign individuals and entities continues to exist despite the absence of a US nexus. This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 591, which states: ''It is important to note that the threat of US sanctions against foreign individuals and entities continues to exist even when there is no direct US nexus (i.e., no US persons or assets involved).''

Question 2

Sanctions screening requirements include that a financial institution should:

Areport an individual whose name appears on a sanctions list to the police.

Bimmediately freeze the bank account of an individual that appears on a sanctions list.

Ccompare customer and transaction records against periodically updated sanctions lists provided by governmental bodies.

Dimmediately close the bank account of an entity who appears on a sanctions list.

Answer : C

Compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies. This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 595, which states: ''Sanctions screening requirements include that a financial institution should compare customer and transaction records against periodically updated sanctions lists provided by governmental bodies.''

Question 3

Potential indicators of money laundering associated with Trust and Company Service Providers include: (Select Two.)

Ause of legal persons in jurisdictions with strict secrecy laws.

Bstructuring cash deposits into third party accounts.

Cmulti-jurisdictional wire transfers with no legal purpose.

Dgeneration of rental income to legitimize illicit funds.

Efrequent deposits to or withdrawals from bank accounts.

Answer : A, C

This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 595, which states: ''Potential indicators of money laundering associated with Trust and Company Service Providers include the use of legal persons in jurisdictions with strict secrecy laws, structuring cash deposits into third party accounts, multi-jurisdictional wire transfers with no legal purpose, and frequent deposits to or withdrawals from bank accounts.''

Question 4

An investigator receives an alert documenting a series of transactions. A limited liability corporation (LLC) wired 59.000,000 USD to an overseas account associated with a state-run oil company. A second account associated with the state-run oil company wired 600,000,000 USD to the LLC. The LLC then wired money to other accounts, a money brokerage firm, and real estate purchases.

The investigator initiated an enhanced KYC investigation on the LLC. The financial institution opened the LLC account a couple of weeks prior to the series of transactions. The names associated with the LLC had changed multiple times since the account opened. A search of those names revealed relations with multiple LLCs. Public records about the LLCs did not show any identifiable business activities.

Open-source research identified mixed reports about the brokerage firm.

The firm indicated it purchased mutual funds for its clients and dispensed returns to clients.

Media reports claimed the firm laundered money by holding money for a fee before returning it to investors.

Which information should the investigator review first when examining the wire transaction documentation?

AThe sanctions screening tool to see if the transaction was stopped

BWhether the wire transfers were initiated domestically

CThe Travel Rule requirements for recordkeeping

DHow the wire transfers were initiated (e.g., phone, online, branch visit)

Answer : D

The investigator should review how the wire transfers were initiated first, because this could indicate the level of involvement and knowledge of the LLC account holders. If the wire transfers were initiated online or by phone, it could suggest that the account holders were trying to avoid face-to-face contact with the bank staff and reduce the chances of being questioned or identified. If the wire transfers were initiated in person at a branch, it could indicate that the account holders were confident or careless about their activities, or that they had some relationship with the bank staff. The method of initiation could also affect the quality and quantity of information collected by the bank about the wire transfers, such as the purpose, source, and destination of the funds. Reference: ACAMS Advanced Financial Crimes Investigations Certification Study Guide, page 65.

Question 5

An investigator receives an alert documenting a series of transactions. A limited liability corporation (LLC) wired 59.000.000 USD to an overseas account associated with a state-run oil company. A second account associated with the state-run oil company wired 600,000,000 USD to the LLC. The LLC then wired money to other accounts, a money brokerage firm, and real estate purchases.

The investigator initiated an enhanced KYC investigation on the LLC. The financial institution opened the LLC account a couple weeks prior to the series of transactions. The names associated with the LLC had changed multiple times since the account opened. A search of those names revealed relations with multiple LLCs. Public records about the LLCs did not show any identifiable business activities.

Open-source research identified mixed reports about the brokerage firm. The firm indicated it purchased mutual funds for its clients and dispensed returns to clients. Media reports claimed the firm laundered money by holding money for a fee before returning it to investors.

What is the total suspicious transaction amount that the investigator should report?

A600,000,000 USD

B59,000,000 USD

C541.000,000 USD

D659,000,000 USD

Answer : D

The total suspicious transaction amount that the investigator should report is 659,000,000 USD. This is the sum of the two transactions involving the LLC and the state-run oil company, which are 59,000,000 USD and 600,000,000 USD respectively. The other transactions that the LLC made to other accounts, a money brokerage firm, and real estate purchases are not relevant to the question, as they are not part of the series of transactions that triggered the alert.

Question 6

Online payments from a customer's account to three foreign entities trigger an investigation. The investigator knows the funds originated from family real estate after an investment company approached the customer online. Funds were remitted for pre-lPO shares. Which should now occur in the investigation?

ASeek evidence for the customer's source of wealth.

BHave the relationship manager contact the customer to understand the nature of the transaction.

CReview the structure of the transactions to the three entities.

DInspect electronic banking login records.

Answer : C

The correct answer is C because reviewing the structure of the transactions to the three entities can help the investigator to identify any red flags or indicators of fraud, such as unusual amounts, frequency, destinations, or beneficiaries. The other options are not as relevant or effective in this scenario. Option A is not necessary because the investigator already knows the source of funds for the customer. Option B is not advisable because contacting the customer directly may alert them to the investigation and compromise its integrity. Option D is not helpful because inspecting electronic banking login records does not provide any information about the nature or purpose of the transactions.

Advanced CAMS-FCI Study Guide, page 281

Financial Crime Typologies - Intermediate Certificate Course, Module 32

Question 7

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.

Acams Advanced CAMS-Financial Crimes Investigations Exam Practice Test