Acams Acams CAMS PDF Acams Acams CAMS PDF Questions Available Here at: https://www.certification-exam.com/en/dumps/acams-exam/cams-dumps/quiz.html Enrolling now you will get access to 862 questions in a unique set of Acams CAMS Question 1 A bank account is established for a new business customer. The business was established five years ago with an address in another state. The business website contains few details other than stating it is a real estate business. One principal has an international telephone number and appears to be living in another country. The other principal works out of a recreational vehicle. What warrants enhanced due diligence in this scenario? Options: A. Shell company B. Human trafficker C. Politically exposed person D. Money laundering through real estate Answer: D Explanation: Money laundering through real estate is a common method of disguising the source and ownership of illicit funds. Real estate transactions often involve large amounts of money, complex legal structures, and cross-border transfers, which can obscure the true nature and origin of the funds. The new business customer in this scenario raises several red flags that warrant enhanced due diligence, such as: The business was established five years ago but has a vague website and no physical presence in the state where it is registered. One of the principals has an international phone number and lives abroad, which could indicate a foreign shell company or a politically exposed person. The other principal works out of a recreational vehicle, which could suggest a lack of legitimate business activity or income. The business claims to be a real estate business, but does not provide any details about its projects, clients, or partners. Acams Acams CAMS PDF https://www.certification-exam.com/ These factors suggest that the business may be involved in money laundering through real estate, either by purchasing properties with illicit funds, using properties to generate illegal income, or selling properties to launder money. Therefore, the financial institution should conduct enhanced due diligence to verify the identity, background, and source of funds of the business and its principals, as well as the purpose and nature of the account relationship. ACAMS Study Guide for the CAMS Certification Examination - 6th Edition, Chapter 2: Money Laundering Risks and Methods, pp. 46-47 Enhanced Due Diligence in Construction and Real Estate, by James Swenson, Ethixbase 360 Due Diligence & Legal Considerations in Commercial Real Estate, by Justia Question 2 A branch manager for a small community bank has a new customer who deposits for EUR 50,000 checks into one account. Shortly thereafter, the customer goes to another branch and asks to transfer all but EUR 1,500 to three accounts in different foreign jurisdictions. Which suspicious activity should be the focus of the suspicious transaction report? Options: A. The customer opened the account with four large checks B. The customer goes to a different branch to make this transaction C. The customer transfers almost all of the funds out of the account D. The customer asks to transfer funds to accounts in three different foreign jurisdictions Answer: D Explanation: According to the ACAMS CAMS Certification Video Training Course1, one of the red flags for money laundering is “transferring funds to or from foreign countries or jurisdictions that are known to have weak anti-money laundering standards or are considered high-risk for money laundering or terrorist financing” (Module 2, Lesson 3, Part 2). This is also consistent with the suspicious activity report (SAR) criteria, which require financial institutions to report transactions that “involve funds derived from illegal activity or are intended or conducted to hide or disguise funds or assets derived from illegal activity” or “involve the use of the financial institution to facilitate criminal activity” (31 CFR § 1020.320(a)(2)). Therefore, the customer’s request to transfer funds to accounts in three different foreign jurisdictions should be the focus of the SAR, as it may indicate an attempt to launder money or finance terrorism. ACAMS CAMS Certification Video Training Course [31 CFR § 1020.320 - Reports by banks of suspicious transactions] Question 3 Acams Acams CAMS PDF https://www.certification-exam.com/ A government has instituted a new anti-money laundering laws which require all financial institutions to obtain certain information from its customers. Which step should an institution located in this jurisdiction take to ensure compliance? Options: A. Change procedures to require that the necessary information is obtained B. Change procedures and systems as necessary and provide employee training C. Send a notice to customers asking them to provide the necessary information D. Change systems to ensure the required information is automatically obtained from all customers Answer: B Explanation: According to the CDD Rule, covered financial institutions must establish and maintain written procedures that are reasonably designed to identify and verify beneficial owners of legal entity customers and to include such procedures in their anti-money laundering compliance program1. These procedures should also be updated as necessary to reflect changes in the law or the institution’s risk profile2. Moreover, the institution should provide adequate training to its employees on the new requirements and monitor their compliance3. 1: FinCEN Guidance, FIN-2020-G002, August 3, 2020, p. 1 2: Your responsibilities under money laundering supervision - GOV.UK, Section: Customer due diligence requirements 3: Customer identification: Know your customer (KYC) | AUSTRAC, Section: Training and awareness Question 4 An anti-money laundering audit identifies a significant weakness in how transaction monitoring alerts are cleared. Audit sampling identified potentially suspicious activity that was cleared as not suspicious. Management accepts the audit finding and develops a remediation plan. What is the role of the auditor during the correction phase? Options: A. Directing the remediation of the deficiency in a timely manner B. Developing procedures to provide sufficient risk-based documentation for clearing alerts C. Providing training to the alert clearing department on the importance of effective alert clearing D. Validating the successful remediation of the issue once management indicates the issue is resolved Acams Acams CAMS PDF https://www.certification-exam.com/ Answer: D Explanation: The audit function should report to the audit committee of the board of directors (or similar oversight body) and independently evaluate the risk management and controls of the bank through periodic assessments, including the adequacy of the bank’s controls to mitigate the identified risks, the effectiveness of the bank’s staff’s execution of the controls, the effectiveness of the compliance oversight and quality controls and the effectiveness of the training. Question 5 Which method to launder money through deposit-taking institutions is closely associated with international trade? Options: A. Forming a shell company B. Using Black Market Peso Exchange C. Structuring cash deposits withdrawals D. Investing in legitimate business with illicit funds Answer: B Explanation: The Black Market Peso Exchange (BMPE) is a trade-based money laundering technique commonly used by narcotics traffickers in Colombia and Mexico. The central feature uses a money trader to ensure that US drug sales revenue doesn’t cross any borders. Instead, those dollars are used to purchase any number of legitimate commodities from unsuspecting businesses on behalf of legitimate South American businesspersons, whose legitimate imports are used to obtain pesos for the drug cartels. This method is closely associated with international trade because it involves the exchange of goods and currencies across different countries, and it exploits the discrepancies between the official and unofficial exchange rates. CAMS Certification Package - 6th Edition | ACAMS, Chapter 2: Money Laundering Risks and Methods, page 35 Black Market Peso Exchange in Money Laundering - Financial Crime Academy What is BMPE ? - Sanction Scanner Overview - FinCEN.gov Reference:[http://fraudaid.com/Dictionary-of-Financial-Scam-](http://fraudaid.com/Dictionary-of-Financial- Scam-) Terms/black_market_peso_exchange.htm Acams Acams CAMS PDF https://www.certification-exam.com/ Question 6 A customer opens a corporate account with a broker-dealer on behalf of several beneficial owners, with a stated long-term investment goal. The customer deposits $25.5 million into the account and three days later transfers $5 million to an overseas bank. Shortly thereafter, the customer begins making numerous purchases of pesos. The compliance officer receives a query regarding the movement of funds. Within a month of account opening, the customer depletes the account. Which two red flags should prompt the firm’s compliance officer to take action? (Choose two.) Options: A. The new account deposit is $25.5 million B. A corporate account is opened on behalf of several beneficial owners C. The compliance officer receives the query regarding the movement of funds D. The customer’s stated investment goal is not reflective of account activity Answer: B, D Explanation: A corporate account opened on behalf of several beneficial owners is a red flag because it may indicate an attempt to conceal the identity or source of funds of the ultimate beneficiaries1. The customer’s stated investment goal of long-term investment is not reflective of the account activity, which involves frequent and large transfers, currency exchanges, and account depletion within a short period of time. This discrepancy may suggest that the customer is using the account for money laundering or other illicit purposes2. = 1: ACAMS CAMS Certification Video Training Course - Exam-Labs, Module 3, Lesson 4, Topic: Corporate Accounts 2: ACAMS CAMS Certification Video Training Course - Exam-Labs, Module 3, Lesson 4, Topic: Customer Profile and Account Activity Question 7 What should countries do to help prevent non-profit organizations from being abused for the financing of terrorism according to the Financial Action Task Force 40 Recommendations? Options: A. Allow for freezing assets of non-profit organizations B. Require all non-profit organizations to register with the country’s financial intelligence unit C. Ensure non-profit organizations cannot be used to conceal or obscure the diversion of funds intended forlegitimate purposes to terrorists’ organizations D. Create laws that forbid non-profit organizations from completing cross-border transactions Acams Acams CAMS PDF https://www.certification-exam.com/ without firstrunning them through known terrorist data bases Answer: C Explanation: According to the Financial Action Task Force (FATF) 40 Recommendations, countries should implement measures to prevent the abuse of non-profit organizations (NPOs) for the financing of terrorism. One of these measures is to ensure that NPOs cannot be used to conceal or obscure the diversion of funds intended for legitimate purposes to terrorists’ organizations. This means that countries should have effective mechanisms to monitor and supervise NPOs, especially those that are at risk of terrorist financing abuse, and to take appropriate actions against NPOs that are involved in such activities. Countries should also ensure that NPOs maintain adequate records of their activities and transactions, and that these records are accessible to competent authorities. Furthermore, countries should promote transparency and accountability in the NPO sector, and encourage NPOs to conduct due diligence on their donors, beneficiaries, and associates. = FATF 40 Recommendations, Recommendation 8 and Interpretive Note to Recommendation 8 Best Practices on Combating the Abuse of Non-Profit Organisations, FATF, June 2015 COMBATING THE ABUSE OF NON-PROFIT ORGANISATIONS (RECOMMENDATION 8), FATF, June 2015 Reference:[http://www.fatf-gafi.org/media/fatf/documents/reports/BPP-combating-abuse-non- ](http://www.fatf-gafi.org/media/fatf/documents/reports/BPP-combating-abuse-non-) profitorganisations.pdf(p.9) Question 8 An employee hears a colleague on the telephone with a customer giving advice on how to ensure that a suspicious transaction report will not be filed as a result of a future transaction. What action should the employee take? Options: A. Report the conversation to the local police B. Report the conversation to the compliance officer C. Tell the colleague that it is against policy to give such advice D. Ignore the situation because the colleague is the relationship manager for that customer Answer: B Explanation: According to the Anti-Money Laundering Specialist (the 6th edition) resources, the employee should report the conversation to the compliance officer because the colleague is engaging in tipping off, which is a serious violation of anti-money laundering laws and regulations. Tipping off is the act of Acams Acams CAMS PDF https://www.certification-exam.com/ informing a person or entity that they are the subject of a suspicious transaction report or an investigation, or providing any information that may compromise or impede the investigation. Tipping off can result in criminal penalties, civil liabilities, and disciplinary actions for the individual and the institution. Therefore, the employee has a duty to report the colleague’s misconduct to the compliance officer, who is responsible for ensuring compliance with the anti-money laundering policies and procedures, and taking appropriate corrective actions. CAMS Certification Package - 6th Edition | ACAMS, Chapter 3: Compliance Standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), page 97 CAMS Certifications: How to Get CAMS Certified | ACAMS, CAMS Examination Preparation, page 8 ACAMS CAMS Certification Video Training Course - Exam-Labs, Module 3: Compliance Standards for Anti-Money Laundering and Combating the Financing of Terrorism, video 3.4: Tipping Off and Confidentiality Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition), Question 8, Answer B Question 9 The USA PATRIOT Act requires United States (U.S.) financial institutions to collect certain information from non-U.S. banks that hold a correspondent account. Which two pieces of information must a non-U.S. bank provide to its U.S. correspondent to enable them to comply with this requirement? (Choose two.) Options: A. The name and address of all shell banks the bank maintains accounts for B. The name and address of all beneficial owners who own 25% or more of the bank C. Prompt notice of any suspicious activity it detects on any customer who uses the correspondent account D. The name and address of a U.S. person who is authorized to receive service of legal process for the bank Answer: A, D Explanation: According to Section 313 of the USA PATRIOT Act, U.S. financial institutions are prohibited from maintaining correspondent accounts for foreign shell banks, which are banksthat have no physical presence in any country and are not affiliated with a regulated financial group. Therefore, a non-U.S. bank must provide the name and address of all shell banks that it maintains accounts for, if any, to its U.S. correspondent. This is to ensure that the U.S. financial institution does not indirectly provide services to shell banks, which pose a high risk of money laundering and terrorist financing. According to Section 319 (b) of the USA PATRIOT Act, U.S. financial institutions that provide a correspondent account to a foreign bank must maintain records of the owners of the foreign bank and the name and address of a U.S. person who is authorized to receive service of legal process for records regarding the correspondent account. This is to facilitate the access of U.S. law enforcement Acams Acams CAMS PDF https://www.certification-exam.com/ authorities to information related to the correspondent account in case of an investigation or a subpoena. The other two options, B and C, are not required by the USA PATRIOT Act, although they may be part of the due diligence or enhanced due diligence procedures that U.S. financial institutions apply to their foreign correspondent accounts, as per Section 312 of the USA PATRIOT Act. USA PATRIOT Act FACT SHEET for Section 312 of the USA PATRIOT Act Final Regulation and Notice of Proposed Rulemaking US PATRIOT ACT CAMS Exam: USA PATRIOT Act Requirements for Opening a Correspondent Account Reference:https://www.sec.gov/about/offices/ocie/amlsourcetool.htm Question 10 What are two legal risks of having inadequate privacy policies and procedures? (Choose two.) Options: A. Diminished reputation B. Industry of regulatory sanctions C. Charges of deceptive business practices D. Higher marketing and public relations costs Answer: B, C Explanation: Having inadequate privacy policies and procedures can expose an organization to legal risks such as industry or regulatory sanctions and charges of deceptive business practices. Industry or regulatory sanctions can result from violating the laws and regulations that govern data privacy and protection, such as the GDPR, the CCPA, or the GLBA.These sanctions can include fines, penalties, injunctions, or revocation of licenses. Charges of deceptive business practices can arise from misleading or false statements about how the organization collects, uses, or discloses personal data, or from failing to comply with its own privacy policies and procedures. These charges can lead to lawsuits, settlements, or enforcement actions by authorities such as the FTC or the state attorneys general. = The 4 Biggest Risks of Non-Compliance With Data Privacy Regulations Security and privacy laws, regulations, and compliance: The complete guide An Ethical Approach to Data Privacy Protection Would you like to see more? Don't miss our Acams CAMS PDF file at: Acams Acams CAMS PDF https://www.certification-exam.com/ https://www.certification-exam.com/en/pdf/acams-pdf/cams-pdf/ Acams Acams CAMS PDF https://www.certification-exam.com/