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A: Shell company B: Human trafficker C: Politically exposed person D: Money laundering through real estate Correct 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. These factors suggest that the business may be involved in money laundering through real Page 2 of 7 https://boost2certify.com/acams/cams 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. (Multi Select) 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.) 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 Correct 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 Page 3 of 7 https://boost2certify.com/acams/cams within a short period of time. This discrepancy may suggest that the customer is using the account for money laundering or other illicit purposes2. Question 3. (Multi Select) 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.) 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 Correct 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. Question 4. (Single Select) Page 4 of 7 https://boost2certify.com/acams/cams 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? 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 for D: Create laws that forbid non-profit organizations from completing cross-border transactions without first Correct 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 Question 5. (Single Select) An employee hears a colleague on the telephone with a customer giving advice on how to ensure that a Page 5 of 7 https://boost2certify.com/acams/cams suspicious transaction report will not be filed as a result of a future transaction. What action should the employee take? 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 Correct 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 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 Page 6 of 7 https://boost2certify.com/acams/cams Full version is available at link below with affordable price. https://boost2certify.com/acams/cams 30% Discount Coupon Code: HAPPYNEWYEAR25 Page 7 of 7 https://boost2certify.com/acams/cams