Acams CAMS Exam Practice Test Instant Access

Question 1

Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

AA local wealthy individual wants to become a customer of a local retail bank.

BA beneficial owner of an exchange house wants to open an account with the bank.

CA wealthy individual from a high-risk country wants to open an account with a private bank.

DA new customer asks to set up an exchange house using the bank as the correspondent.

Answer : C

Question 2

Which is a key aspect in the FATF Recommendations that best describes the essential foundation for allocating resources in AML/CFT regimes for countries and financial institutions (FIs)?

AImplementing targeted financial sanctions

BPerforming country peer-to-peer evaluations

CEnforcing mutual legal assistance

DApplying a risk-based approach

Answer : D

Question 3

An accounting firm opened an account at a bank that is intended to be used as the operational account for the business. After a few months, a comprehensive review of the account was triggered due to unusual activity on the account. Which most likely triggered the review?

AThe account receives international payments that are substantially higher than other fees they typically receive.

BThe account sends monthly donations to several charities that operate in the same communities as the accounting firm.

CThe account receives several payments a day from multiple customers who operate in different industries.

DThe account receives international wires from companies in the Middle East where the accounting firm has several branches.

Answer : B

Question 4

One area of responsibility for the Board of Directors when implementing a successful AML program is to:

Aensure the appointment of a qualified chief AML officer.

Bcreate a culture of compliance based on the profit expectation.

Cmanage the day-to-day processes of the compliance program.

Dhire a third-party firm to be responsible for the AML compliance.

Answer : A

Question 5

An EU Trust and Company Service Provider (TCSP) analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?

AInter-company loans from the holding company to the subsidiary company to finance the shipment of machinery.

BThe payment of virtual offices services overseas.

CThe payment of consultancy fees to unrelated companies and service providers established in a foreign jurisdiction.

DThe payment of company secretarial retainer fees to a foreign company in a tax efficient jurisdiction.

Answer : C

Question 6

A compliance analyst is reviewing recent activity between a publicly traded company and a company in a high risk jurisdiction. Which detail suggests that escalation is warranted?

AThe activity is a reputational risk to the financial institution.

BIt is the first time the originator wires the beneficiary.

CBeneficiary is active in a related industry.

DPayments to the beneficiary are for large dollar amounts.

Answer : D

Question 7

Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)

AInform other banks in the same geographical area to freeze the client's assets if they are a member of that bank, too.

BExtend the account and asset freeze to the client's family members as a precautionary measure.

CEnsure the client and beneficiaries are unable to access any frozen assets during the freeze order.

DThe institution does not need to comply with the request if the client's assets make the task unusually difficult or complex to access.

EAn affidavit must accompany the freeze order for the bank to comply with the request.

FThe institution should obtain a copy of the court order to freeze the assets of the named individuals.

Answer : C, F

Acams Certified Anti-Money Laundering Specialist Exam Practice Test