Ace CAMS Certification with 865 Actual Questions
PASS ACAMS CAMS EXAM WITH UPDATED DUMPS
The CAMS exam covers a broad range of topics, including money laundering and terrorist financing methods, regulatory frameworks, risk assessment, due diligence, and sanctions compliance. CAMS exam consists of 120 multiple-choice questions that must be completed within a 3.5-hour time limit. Candidates must achieve a passing score of 75% or higher to earn the CAMS certification. Certified Anti-Money Laundering Specialists (the 6th edition) certification must be renewed every three years by completing continuing education courses and demonstrating ongoing professional development in the AML field. Overall, the CAMS certification is an essential credential for professionals working in the financial industry who want to enhance their knowledge and expertise in the fight against money laundering and terrorist financing.
NEW QUESTION # 470
In which of the following situations would it be most crucial for the designated AML compliance officer of a company to perform a complete review of the company's AML program, including identifying the risks and commensurate controls?
- A. Extensive AML legislation is proposed by a legislative body in the company's jurisdiction
- B. An external audit highlights several deficiencies
- C. A high-profile money laundering case involving another industry is publicized
- D. The company is merging with or acquiring another entity
Answer: D
NEW QUESTION # 471
Which is a key characteristic of the Financial Action Task Force (FATF) Regional Style Bodies for combatting money laundering/terrorist financing?
- A. Emphasizing regional co-operation between member countries
- B. Enabling FATF standards to be specific to each region
- C. Instructing each member country to place FATF recommendations into law
- D. Implementing regional mutual evaluation procedures
Answer: D
Explanation:
Explanation
According to the CAMS study guide, the Financial Action Task Force (FATF) Regional Style Bodies are organizations created by the FATF to promote the implementation of anti-money laundering and countering the financing of terrorism (AML/CFT) measures in specific regions. One of the key characteristics of these bodies is the implementation of regional mutual evaluation procedures.
Regional mutual evaluations involve member countries evaluating each other's AML/CFT regimes to identify strengths and weaknesses and to develop best practices for improvement. This process allows for greater cooperation between countries and can help to identify and address regional AML/CFT risks more effectively.
It also promotes consistency in AML/CFT standards and practices within the region.
NEW QUESTION # 472
Which two methods can be used to structure casino-related transactions? (Choose two.)
- A. Playing at the same game
- B. Purchase of chips at multiple gaming tables
- C. Use of third parties to conduct transactions
- D. One time deposit of cash at a single gaming machine
Answer: B,C
NEW QUESTION # 473
What is the intentional evasion of a reporting or recordkeeping requirement?
- A. Structuring
- B. Placement
- C. Money laundering
- D. Layering
Answer: C
NEW QUESTION # 474
A money transmitter's nation-wide agent network remits funds to a country in Africa on behalf of an immigrant community based in the United States. A terrorist group is known to operate openly in this African country. In reviewing transaction records, the compliance officer detects a pattern where two customers together visit the same agent each week and remit the same amount of funds. $2,500, to the same recipient in the country in Africa.
What should alert the compliance officer to possible money laundering or terrorist financing activity by the two customers?
- A. The customers always visit together.
- B. The customers always visit the same agent.
- C. The funds are being sent to the same recipient each week.
- D. The dollar amount of each transaction is just below the record keeping threshold.
Answer: D
NEW QUESTION # 475
Which is the first valid step in the Mutual Legal Assistance Treaties (MLAT) international cooperation process?
- A. An investigator from the requesting country visits the country where the information is sought and takes statements from the identified witnesses or suspects.
- B. The central authority that receives the request sends it to a local judicial officer to find out if the information is available.
- C. The central authority of the requesting country sends a commission letter of request to the central authority of the other country.
- D. The investigator may remove the evidence collected without asking permission to do so.
Answer: C
Explanation:
Mutual Legal Assistance (MLA) is a form of cooperation between different countries for the purpose of collecting and exchanging information and evidence in criminal matters. MLA is usually governed by bilateral or multilateral treaties that establish the procedures and requirements for requesting and providing assistance. The first valid step in the MLA process is to send a formal request from the central authority of the requesting country to the central authority of the requested country. The central authority is the designated entity that is responsible for making, receiving, and facilitating the execution of MLA requests. The request should contain the necessary information and documents to enable the requested country to assess and execute the request, such as the nature and purpose of the request, the legal basis, the description of the assistance sought, the identity of the persons involved, the applicable legal provisions, and the deadline for the response.
The request may also be accompanied by a commission letter of request, which is a judicial document that authorizes a foreign authority to perform certain acts on behalf of the requesting authority, such as taking evidence or statements from witnesses or suspects.
References:
* Guidelines on Mutual Legal Assistance in Criminal Matters, Section 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 2.4, 2.5,
2.6, 2.7, 2.8, 2.9, 2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16, 2.17, 2.18, 2.19, 2.20, 2.21, 2.22, 2.23, 2.24,
2.25, 2.26, 2.27, 2.28, 2.29, 2.30, 2.31, 2.32, 2.33, 2.34, 2.35, 2.36, 2.37, 2.38, 2.39, 2.40, 2.41, 2.42,
2.43, 2.44, 2.45, 2.46, 2.47, 2.48, 2.49, 2.50, 2.51, 2.52, 2.53, 2.54, 2.55, 2.56, 2.57, 2.58, 2.59, 2.60,
2.61, 2.62, 2.63, 2.64, 2.65, 2.66, 2.67, 2.68, 2.69, 2.70, 2.71, 2.72, 2.73, 2.74, 2.75, 2.76, 2.77, 2.78,
2.79, 2.80, 2.81, 2.82, 2.83, 2.84, 2.85, 2.86, 2.87, 2.88, 2.89, 2.90, 2.91, 2.92, 2.
Reference: https://www.unodc.org/documents/organized-crime/Publications
/Mutual_Legal_Assistance_Ebook_E.pdf
NEW QUESTION # 476
Which statement regarding data privacy is the most accurate in the context of AML investigations?
- A. Organizations are required to demonstrate that customers have opted into information sharing before submitting SARs to relevant Financial Intelligence Units (FIUs).
- B. FIUs should document purposes for which personal data included on Suspicious Activity Reports (SARs) may be shared with other agencies.
- C. Data privacy laws prohibit information sharing between financial institutions for the purposes of AML investigations in all jurisdictions.
- D. Any customer that is the subject of a suspicious report filing has the right to request redaction of their personal data.
Answer: B
Explanation:
AML compliance must balance data privacy laws with financial crime prevention.
Option A (Correct): FIUs must document the purpose of SAR-related data sharing under FATF Recommendation 29 and GDPR compliance standards.
Option B (Incorrect): Customers do not have the right to request redaction of personal data in SARs, as this would compromise AML enforcement.
Option C (Incorrect): Many jurisdictions permit information sharing for AML purposes under formal agreements (e.g., 314(b) USA PATRIOT Act, GDPR exemptions).
Option D (Incorrect): AML reporting requirements override opt-in privacy preferences due to the legal obligation to report suspicious activity.
NEW QUESTION # 477
A customer comes into the bank and appears to be ill-at-ease waiting in the teller line. When the customer gets to the teller, he become exceedingly nervous and asks for a large cashier's check to be cashed and disbursed to him in $100 bills.
What should the teller do after completing the transaction?
- A. Monitor the customer's account going forward
- B. File a SAR on the customer
- C. File a CTR on the customer by the end of the day
- D. Confer with the bank' s account going forward
Answer: B
NEW QUESTION # 478
Which of the following is the most common risk with a Personal or Private Investment Company (PIC)?
- A. They often lack transparent ownership
- B. They are usually established in financial secrecy havens
- C. They are not publicly traded
- D. They are almost always owned by politically exposed persons
Answer: A
NEW QUESTION # 479
In which three situations is correspondent banking most vulnerable to money laundering? Choose 3 answers
- A. When allowing the correspondent bank account to be used by other banks
- B. When allowing foreign banks to use the correspondent account to conduct large financial transactions on behalf of their customers
- C. When allowing financial institutions, without proper due diligence, to access correspondent network for routing their financial transactions
- D. When allowing the correspondent bank account to be used as a payable through account (PTA)
Answer: A,D
NEW QUESTION # 480
An employee in a corporation's finance department hears news of an internal investigation into potential fraud within the company, quits their job, and disappears.
If they had been observed before their resignation, which characteristics of the employee would have been considered red flags? (Select Two.)
- A. The employee was constantly evasive about the reasons for leaving their previous corporate finance job.
- B. The employee had a lavish lifestyle for their income.
- C. The employee had friends in high-risk industries.
- D. The employee was originally from a high-risk jurisdiction.
Answer: A,B
Explanation:
Fraud and financial crime are often associated with sudden resignations, attempts to evade scrutiny, and financial behaviors inconsistent with legitimate income.
Option A (Correct): Being evasive about past employment suggests potential undisclosed misconduct.
Option D (Correct): Living beyond one's means is a major financial crime red flag, indicating possible fraud or illicit earnings.
Why Other Options Are Incorrect:
Option B (Incorrect): Nationality alone does not indicate fraud risk.
Option C (Incorrect): Having friends in high-risk industries is not necessarily a direct red flag.
Common Red Flags for Employee-Related Financial Crime:
Reluctance to take vacations or change roles (attempting to conceal wrongdoing).
Sudden resignation or disappearance following internal investigations.
Unusual financial activity, including large unexplained deposits.
Best Practices for Fraud Prevention in Corporations:
Regularly monitor employees in high-risk roles (e.g., finance, procurement).
Use whistleblower channels to detect internal misconduct.
Conduct thorough background checks before hiring employees.
Reference:
FATF Guidance on Internal Fraud and Money Laundering
Wolfsberg Group Best Practices for Employee Monitoring
Basel Committee Guidelines on Insider Financial Crime Risks
NEW QUESTION # 481
A bank located in New York has identified suspicious transactions at a correspondent bank in ChinA. For one of the international customers, the correspondent bank is not following agreed upon protocols.
Which factor indicates that the bank should terminate the relationship?
- A. The correspondent bank has opened branches in a country on the Office of Foreign Assets Control list.
- B. The primary institution has requested transactional details from the correspondent bank to aide in their investigation.
- C. The compliance officer at the correspondent bank is currently being investigated due to bribery allegations.
- D. The correspondent bank has recently exceeded acceptable limits in the primary banks' recently developed risk model.
Answer: A
Explanation:
the correspondent bank has engaged in a high-risk activity that could expose the primary bank to sanctions violations, reputational damage, and regulatory scrutiny. The Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions against targeted foreign countries, regimes, terrorists, and other threats to the national security, foreign policy, or economy of the United States1. Opening branches in a country on the OFAC list indicates that the correspondent bank is not complying with the sanctions requirements, and could be facilitating transactions for sanctioned entities or individuals. This would pose a serious risk for the primary bank, which is responsible for conducting due diligence and monitoring of its correspondent banking relationships2. Therefore, the primary bank should terminate the relationship with the correspondent bank to avoid any potential liability or penalties.
The other options are not as compelling as A, because they do not necessarily indicate that the correspondent bank is violating any laws or regulations, or that the primary bank is exposed to significant risks. Option B could be a cause for concern, but it does not imply that the correspondent bank is involved in any wrongdoing, or that the compliance officer has any influence over the correspondent banking activities. Option C could suggest that the correspondent bank is engaging in unusual or suspicious transactions, but it does not mean that the primary bank should terminate the relationship immediately, as it could also be a result of changes in the correspondent bank's business profile, customer base, or market conditions. Option D is a normal and expected part of the correspondent banking relationship, as the primary bank has the right and obligation to request transactional details from the correspondent bank to verify the legitimacy and source of funds, and to identify any red flags or anomalies3.
References:
1: OFAC website
2: ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 5, page 178
3: ACAMS CAMS Certification Video Training Course, Module 5, Lesson 4
4: ACAMS CAMS Certification Practice Exam, Question 93
5: https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-informati
6: https://www.acams.org/en/cams-certification-package-6th-edition
7: https://www.exam-labs.com/video-training/acams-cams
8: https://vceplus.io/exam-cams/
NEW QUESTION # 482
An anti-money laundering specialist working at a bank just received a legal request from a law enforcement agency mandating the release of all financial transaction records relating to an account at the bank. The specialist immediately recognizes the account as one owned by the bank Chief Executive Officers brother.
During research to gather the requested documents, the specialist finds several internal memos he had sent to the bank president with concerns regarding possible suspicious activity relating to this account. The specialist recalls the bank president verbally responded to each memo with an explanation of the activity and indicated there was no cause for concern. What should the specialist do with respect to these internal memos?
- A. Advise the bank's senior legal advisor of the situation
- B. Ask the bank president to document his instructions to the specialist
- C. Place these memos in his personal files in case they are subsequently requested
- D. Call the law enforcement agent and suggest he modify the legal request to include these memos
Answer: A
Explanation:
the specialist should inform the bank's senior legal advisor of the situation and seek guidance on how to handle the legal request and the internal memos. The specialist should not take any action that could compromise the integrity of the legal request, the bank's anti-money laundering program, or the specialist's own professional obligations. The specialist should not place the memos in his personal files, as this could be seen as hiding or tampering with evidence. The specialist should not ask the bank president to document his instructions, as this could create a conflict of interest or a perception of undue influence. The specialist should not call the law enforcement agent and suggest he modify the legal request, as this could be seen as interfering with the investigation or tipping off the account holder.
References:
Legal Sector Affinity Group (LSAG) Anti-Money Laundering Guidance for the Legal Sector (January
2021) p. 1321
ACAMS: Certified Anti-Money Laundering Specialist | ACAMS2
Anti-Money Laundering - The Law Society of Singapore3
NEW QUESTION # 483
In establishing procedures for the review of suspicious transactions and filling of STRs, what thing should an institution focus on?
- A. A system for tracking STRs and ensuring that appropriate supporting documentation is segregated and maintained
- B. The need not to ensure that the institution has a strong case of impropriety before filling an STR
- C. The need to have on-going training as to potential red flags that the institution might encounter
- D. The appropriateness of having a centralized review of suspicious transactions and recommendations to file an STR to ensure consistency
Answer: D
Explanation:
An institution should focus on the appropriateness of having a centralized review of suspicious transactions and recommendations to file an STR to ensure consistency. This is because a centralized review process can help to avoid duplication, inconsistency, or omission of STRs, as well as to ensure compliance with regulatory requirements and internal policies. A centralized review process can also facilitate the analysis of trends, patterns, and typologies of suspicious transactions across the institution, and enable the communication and coordination with relevant stakeholders, such as law enforcement, regulators, or other financial institutions.
References: =
ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 5, Section 5.3.1, page 1911 ACAMS CAMS Certification Video Training Course, Module 5, Lesson 5.3, video time 2:30-4:002 ACAMS CAMS Certification Practice Exam, Question 124, page 2843
NEW QUESTION # 484
As emphasized in theBasel Committee guidancefor"Sound Management of Risks Related to Money Laundering and Financing of Terrorism", thethird line of defense (audit function)should:
- A. Remain independent from expressing opinions on the sufficiency of remediation or action plans to address findings and recommendations.
- B. Conduct AML audits no less often than every 12 months for consistency in annual reporting.
- C. Report to the audit committee of the board of directors to maintain independence.
- D. Be involved in the day-to-day operations of the AML program to immediately prevent control failures.
Answer: A
NEW QUESTION # 485
Since its last regulatory examination, a financial institution has aggressively grown by adding profitable new products and services. The institution has not historically received regulatory criticism regarding its anti- money laundering compliance program. However, a recent regulatory examination cited significant deficiencies in the anti-money laundering program that were attributed primarily to the lack of oversight by the institution's leadership in implementing adequate controls over the new products and services.
Which area of international control should leadership first address to correct the weaknesses in the program?
- A. Anti-money laundering compliance staff
- B. Anti-money laundering training
- C. Money laundering risk assessment
- D. Anti-money laundering policy
Answer: C
Explanation:
A money laundering risk assessment is a crucial component of an effective anti-money laundering (AML) program. It involves identifying, assessing, and understanding the specific risks related to money laundering and terrorist financing that the institutionmay face. A risk assessment helps the institution to design and implement appropriate controls, policies, procedures, and training to mitigate the risks. A risk assessment should be updated regularly and whenever there are significant changes in the institution's business activities, products, services, customers, or geographic locations. In this scenario, the financial institution has experienced significant deficiencies in its AML program during a recent regulatory examination. The deficiencies were primarily attributed to the lack of oversight by the institution's leadership in implementing adequate controls over the new products and services that were added as part of the institution's aggressive growth strategy. To correct these weaknesses in the AML program, the leadership should first address the area of international control known as "Money laundering risk assessment" (Option C). By conducting a new and comprehensive risk assessment, the leadership can identify the potential vulnerabilities and gaps in the AML program that may arise from the new products and services. The risk assessment can also help the leadership to prioritize the actions and resources needed to address the deficiencies and enhance the AML program.
Once the risk assessment is completed, the leadership can then work on updating the AML policy, providing adequate training, and ensuring sufficient compliance staff to implement and monitor the controls.
1, Chapter 2: Risk Assessments
2, Section 2: Anti-Money Laundering Compliance Program
3, Question 145
NEW QUESTION # 486
......
CAMS Questions PDF [2026] Use Valid New dump to Clear Exam: https://www.dumpsreview.com/CAMS-exam-dumps-review.html
Passing ACAMS CAMS Exam Using 2026 Practice Tests: https://drive.google.com/open?id=1ZDlUMFu0Lz0RfRLgiA5HtUuyazm3QCyf
