Get Ready to Pass the CAMS7 exam with ACAMS Latest Practice Exam [Q25-Q47]

NEW QUESTION 25
Interactions between the compliance department and other functions or departments within an organization contribute to making the anti-financial crime (AFC) compliance program more robust by addressing specific risk areas.
Which departments play a crucial role in enhancing the AFC compliance program of an organization? (Select Two.)

Information security office (ISO)

Marketing and sales

Human resources (HR)

Data privacy office (DPO)

NEW QUESTION 26
Professional service providers-including lawyers, accountants, investment brokers, and other third parties-may abuse their positions to facilitate money laundering.
Which financial crime risks are associated with this type of abuse? (Select Three.)

Opening an account to settle an estate on behalf of a client

Establishing shell companies to enable money laundering activities, including placement or layering

Opening third-party accounts for the primary purpose of masking the underlying client’s identity

Opening a trust account to facilitate a legitimate real estate transaction

Directing or facilitating the laundering of illicit funds, including structuring transactions

NEW QUESTION 27
Which of the following controls is typically implemented at customer onboarding to mitigate the risk of onboarding high-risk customers?

Enhanced due diligence (EDD)

Transaction monitoring

Customer risk assessment

Sanctions screening

NEW QUESTION 28
Which statement best describes an organizational challenge for law enforcement agencies and Financial Intelligence Units (FIUs) when conducting cross-border money laundering (ML) investigations?

Defining a common communication approach and language between all involved parties.

Delays in the investigation due to a foreign FIU awaiting the results of queries performed by third parties.

Conducting an investigation in all countries through which ML funds were transferred when one or more of the countries do not have an FIU.

Investigations which involve high-ranking politicians, who often have influence over the local FIU.

NEW QUESTION 29
The primary objectives of the United Nations in developing sanctions regimes include: (Select Three.)

to force developing nations to adopt liberal or substantive democracies.

to support governments and regimes in the peaceful resolution of conflict.

to punish governments for having weak financial crime controls.

to deter non-democratic and non-constitutional changes within countries.

to support the protection of human rights.

NEW QUESTION 30
Which activities are part of adverse media screening for negative news and reputational risks? (Select Three.)

Analyzing customer sentiment through feedback and surveys

Identifying individuals or entities linked to criminal activities or sanctions

Periodically monitoring regulatory updates and enforcement actions for associated entities

Scanning publicly available news articles and regulatory alerts

Monitoring changes in credit scores of individuals or entities

NEW QUESTION 31
What are the main benefits of implementing explainable artificial intelligence (AI) or machine learning (ML) technologies to improve operational effectiveness within AML/CFT compliance? (Select Two.)

Identifies AML/CFT risks without the need for human involvement

Reduces the need for human resources

Processes and analyzes large data sets more quickly and accurately

Increases auditability, accountability, and overall good governance

NEW QUESTION 32
A compliance officer at a financial institution (FI) is reviewing a new client application for a virtual asset service provider (VASP).
Which details should be part of the risk assessment to determine whether the customer falls within the FI’s financial crimes risk appetite? (Select Three.)

Whether the VASP’s procedures are sufficient for protecting client personally identifiable information

What percentage of the VASP’s clients are classified as higher-risk

Which registered institutions act on behalf of the VASP as operators of virtual asset wallets and virtual asset exchange offices

Whether the VASP is utilizing central bank digital currencies

Who the VASP’s clients are, including the breakdown of foreign and domestic individuals

NEW QUESTION 33
Reference data screening includes the screening of which types of datasets? (Select Two.)

Types of payment messages

Customers

Third-party service providers

Customer spouses

NEW QUESTION 34
An international bank is investigating a payment requested by one of its correspondent relationships that generated an alert in the automated transaction monitoring system. The payment originated from a corporation located in Hong Kong and the final beneficiary is an individual located in New York.
Which steps should the bank take first to address the alert? (Select Three.)

Send a 314(b) request to the corporation’s bank in Hong Kong

Call the receiving individual to review identity verification documents

Confirm that neither the beneficiary nor the originator are sanctioned parties

Request supporting documents, including invoices and contracts to confirm the purpose of the payment

Check for negative news in public sources on the sender and receiver

NEW QUESTION 35
It is important to validate the “conceptual soundness” of an AML model in order to:

Verify alignment with regulatory guidance and industry best practices

Assess whether the model’s methodology and assumptions are logical and appropriate for detecting money laundering

Validate the statistical significance of the model’s predictive capabilities

Demonstrate compatibility with current technological infrastructure

NEW QUESTION 36
Which principle about safeguarding privacy and data should an auditor adhere to when performing an AML investigation?

AML and Data Protection Privacy laws should not be mutually exclusive.

During evidence gathering, privacy laws are less important than local AML laws.

Terrorist financing is more relevant in the context of data protection and supersedes laws.

Countries should clarify where AML and Data Protection Privacy laws are not balanced.

NEW QUESTION 37
Which risk factors are associated with acquiring and servicing the banking activities of customers considered higher risk for financial crime activities? (Select Three.)

Reputational risk

Operational risk

Sanctions risk

Compliance risk

Lending risk

NEW QUESTION 38
Which method could be used in the placement stage of money laundering in the real estate sector?

Paying an invoice to a media company via online banking for property marketing

Using a registered trust to transfer ownership

Using cash to purchase property

Bringing a property back to market quickly after purchasing it

NEW QUESTION 39
Potential risk indicators for a trade counterparty in trade-based money laundering include: (Select Three.)

Irregular or inconsistent trade volume and frequency that does not align with the historical trading behavior of the counterparty

Contracts, invoices, or other trade documents containing detailed descriptions of the traded commodities

Cash deposits or other transactions consistently below the relevant reporting thresholds

Engaging in transactions and shipping routes or methods that are not in line with standard business practices

Transparent pricing structures with additional information provided to the receiving bank when pricing fluctuates by ±10%

NEW QUESTION 40
Correspondent banking is considered a higher-risk banking sector because correspondent banking transactions:

Are made primarily to and from high-risk jurisdictions

Can be made anonymously and without beneficial ownership information

Typically include less information than domestic payments

Are made cross-border and on behalf of third parties

NEW QUESTION 41
Which regulation is the cornerstone of AML/CFT legislation in the United States and requires financial institutions (FIs) to establish and maintain robust AML programs, including customer identification and due diligence procedures, as well as record-keeping and reporting of certain transactions to the Financial Crimes Enforcement Network (FinCEN)?

USA PATRIOT Act

Bank Secrecy Act (BSA)

Money Laundering Control Act (MLCA)

Markets in Crypto-Assets Regulation (MiCA)

NEW QUESTION 42
A financial institution’s US Branch receives a subpoena from law enforcement requesting detailed records of a customer’s account activity. The customer is part of an ongoing investigation into a money laundering operation. At the same time, the institution has received a FinCEN 314(b) information-sharing request from another bank seeking details on transactions linked to the same customer. The compliance team is tasked with responding to both the subpoena and the FinCEN 314(b) request.
What should the compliance officer prioritize in responding to these requests while ensuring that all legal and regulatory obligations are met?

Notify the customer of the information-sharing request from the other financial institution and seek their consent before responding

Consult the institution’s legal counsel to validate the subpoena, then respond directly to law enforcement while ensuring all documentation is properly recorded

Respond to the FinCEN 314(b) request first, as it allows for voluntary information sharing with partner organizations

Provide the requested records to both law enforcement and the other financial institution immediately to ensure full cooperation and transparency

NEW QUESTION 43
Which types of external data sources are expected to be used for screening customers as part of customer due diligence (CDD)? (Select Three.)

Customer feedback and online review platforms

Social media profiles to assess lifestyle and spending habits

Sanctions lists, including those issued by the Office of Foreign Assets Control (OFAC)

Registers of stolen or forged documents (where available)

Beneficial ownership registers and adverse media sources

NEW QUESTION 44
The new KYC lead at a bank is particularly focused on enhancing the risk management component of its KYC program and refers to the Basel Committee’s customer due diligence (CDD) principles.
Which of the following describe key improvements to a KYC program established in the Basel Committee’s CDD principles? (Select Two.)

Implementation of a blacklist of correspondent customers with previously detected and investigated suspicious activity

Enhancement of a customer acceptance policy to more clearly identify high-risk customers

Increased frequency of training provided to front office employees

Enhancement of customer identification procedures to appropriately identify trust, nominee, and fiduciary accounts

NEW QUESTION 45
The manager of a bank’s KYC team discovers that a high-risk customer’s activity was not reviewed last quarter as the bank’s internal schedule required.
What should the KYC team manager do?

Submit a referral to file a suspicious activity report (SAR)

Evaluate the KYC review process to understand why the review did not occur as required and take corrective action as necessary

Contact the customer’s relationship manager to suspend account access until the periodic KYC review is completed

Remove the customer from the bank’s high-risk list

NEW QUESTION 46
A compliance officer at a financial institution has completed an investigation into a high-risk customer’s activities and determined that there are strong indications of money laundering. The compliance officer has documented their findings and is ready to recommend offboarding the customer. However, the relationship manager responsible for the customer is resistant to the idea, citing the customer’s significant revenue contribution to the institution.
What should the compliance officer do next to ensure the appropriate escalation and decision-making process is followed?

Escalate the matter to the institution’s high-risk client committee, presenting the investigation findings and recommending offboarding while also acknowledging the relationship manager’s concerns

Proceed with offboarding the customer unilaterally based on their investigation findings and anti-money laundering (AML) concerns

Attempt to persuade the relationship manager to agree with the offboarding recommendation by highlighting the potential reputational and regulatory risks associated with maintaining the relationship

Delay the offboarding decision and continue monitoring the customer’s activities, waiting for further evidence to solidify the case for termination

NEW QUESTION 47
Which statements regarding using network analysis tools to determine links to criminality are true? (Choose three.)

When using network analysis data to fight money laundering and financial crime, data protection and privacy can be disregarded because fighting crime takes precedent

Network analysis tools are an efficient means of generating relevant results because they only need a limited amount of data and computation power and artificial intelligence (Al) allows less-skilled people to quickly learn to use these systems

When using artificial intelligence (Al) with network analysis tools, it must be ensured that the algorithms used are not biased towards social criteria, such as race, gender, or religion

Network analysis allows for the identification of individuals or entities in a network by analyzing connections or links between them and can be used to study a wide range of systems, such as social or transportation networks

Analyzing relationships between individuals in a social network allows for the identification of hierarchies, the detection of behaviors and geographical movements, or an understanding of how groups are organized

Exam Practice Questions

Get Ready to Pass the CAMS7 exam with ACAMS Latest Practice Exam [Q25-Q47]

Leave a Reply Cancel reply

Related Posts

2022 CAMS exam torrent CAMS Study Guide [Q113-Q134]

[Jun 06, 2024] Updates Up to 365 days On Valid CGSS Braindumps [Q61-Q75]

Quality Advanced-CAMS-Audit PDF Dumps – Advanced-CAMS-Audit Exam Questions [Q19-Q35]

CKYCA Dumps PDF – CKYCA Real Exam Questions Answers [Q16-Q38]

Leave a Reply Cancel reply