[Oct 31, 2026] CAMS7 Dumps Full Questions – Exam Study Guide [Q85-Q101]

Published date October 31, 2026

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[Oct 31, 2026] CAMS7 Dumps Full Questions – Exam Study Guide

CAMS Certification Free Certification Exam Material from PassTestking with 447 Questions

ACAMS CAMS7 Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: AML Compliance Framework	25%	– Roles and responsibilities 1. Compliance officer duties 2. Governance and oversight – Compliance program components 1. Policies and procedures 2. Internal controls
Topic 2: Money Laundering and Terrorist Financing Concepts	30%	– Global AML/CFT standards 1. FATF Recommendations 2. International regulatory frameworks – Definitions and stages of money laundering 1. Terrorist financing typologies 2. Placement, layering, integration
Topic 3: Detecting and Preventing Financial Crime	20%	– Investigations and enforcement 1. Case management and documentation 2. Regulatory investigations – Financial crime typologies 1. Trade-based money laundering 2. Fraud and corruption schemes
Topic 4: Risk Management and Due Diligence	25%	– Customer Due Diligence (CDD/KYC) 1. Enhanced due diligence (EDD) 2. Customer identification programs (CIP) – Transaction monitoring and reporting 1. Monitoring systems and typologies 2. Suspicious Activity Reports (SAR/STR)

NEW QUESTION 85
In the context of terrorist financing, which of the following are potential indicators of the abuse of non-profit organizations (NPOs)? (Choose two.)

Involvement in community development and humanitarian aid projects

Large and unaccounted cash donations from anonymous sources

Operating in high-risk jurisdictions with limited oversight

Frequent changes in leadership and mission statements

Extensive transparency in financial reporting and governance practices

Potential indicators of terrorist financing abuse in non-profit organizations include large, unaccounted cash donations from anonymous sources, which can disguise illicit funding, and operations in high-risk jurisdictions with limited oversight, where regulatory and monitoring frameworks may be weak.

NEW QUESTION 86
Financial crime risk related to the use of “hawalas” can stem from: (Select Two.)

difficulty in tracking the originator, recipient, and source of transactions.

remote verification of identity by third-party program managers.

heavy usage by senior political figures.

informal networks used for cross-border transactions outside of the formal banking system.

heightened risks of returned transactions.

A: “Hawala and similar informal value transfer systems are difficult to monitor, making it challenging to identify the originator, recipient, and source of funds.” D: “Hawala operates through informal networks for cross-border transfers, often outside the formal banking system, increasing AML/CFT risk.”(CAMS 6th Edition, Alternative Remittance Systems; FATF, Guidance on Money Transfer Services) References:
CAMS 6th Edition, Money Transfer and Informal Value Transfer Systems
FATF, Alternative Remittance Systems Guidance

NEW QUESTION 87
According to PinCEN. when a financial institution (PI) identities a suspicious activity that necessitates suspicious activity report (SAR) filing, the SAR supporting documentation should (Select Two.)

include all documents or records that assisted the Fl in making the determination that the activity required a filing.

always be limited to account name, account details, and transaction records.

have written policies and procedures to maintain supporting documentation.

be saved in a single separate file with hard copies stored in a fireproof cabinet.

NEW QUESTION 88
Which characteristics of trust and company service providers (TCSPs) can potentially make them vulnerable to financial crime? (Select Three.)

They may market themselves specifically to criminals

Offering nominee directors may increase anonymity by concealing true ownership

They do not have to comply with AML regulations in most jurisdictions

Selling ready-made, off-the-shelf companies to offshore intermediaries

Having minimal face-to-face contact with customers, particularly in offshore arrangements

Trust and company service providers (TCSPs) are recognized by FATF as higher-risk gatekeepers due to the nature of services they provide, which can be misused to facilitate money laundering.
The use of nominee directors can obscure beneficial ownership, allowing criminals to hide their involvement behind third parties. This lack of transparency is a significant AML risk.
The sale of ready-made or shelf companies, particularly through offshore intermediaries, enables rapid creation of legal entities with no operating history, which are frequently used in layering schemes.
Additionally, minimal face-to-face interaction-especially in offshore service models-reduces the ability to verify customer identity and intent, increasing impersonation and misuse risks.
TCSPs do not market themselves to criminals and are subject to AML obligations in most jurisdictions, making those options incorrect.

NEW QUESTION 89
Which of the following programs would most likely be considered part of an effective supervision regime for a regulator?

Onsite and offsite reviews, cooperating on an international basis with access to a range of sanctions and outreach

Onsite and offsite reviews, cooperating on an international and domestic basis with access to a range of sanctions and outreach

Offsite reviews, cooperating on a domestic basis with access to a range of sanctions and outreach

Onsite reviews, cooperating on an international and domestic basis with outreach and access to a range of sanctions

An effective supervision regime includes both onsite and offsite reviews, cooperation on international and domestic levels, and access to a range of sanctions and outreach programs.
This combination allows regulators to detect and address risks comprehensively while promoting compliance through engagement and enforcement.

NEW QUESTION 90
Assessing the money laundering risk related to a product within the financial sector includes assessing the:
(Select Two.)

governance arrangements

complexity of the products

results of the last audit

financial status of the business

Governance arrangements (A):”Sound governance and risk management arrangements are fundamental to assessing and managing ML/TF risk in products and services.”(CAMS 6th Edition, Risk-Based Approach for Products and Services) Complexity of the products (B):”Complexity increases risk-products that are highly complex, opaque, or allow for multiple layers or jurisdictions are more vulnerable to misuse for ML/TF.”(CAMS 6th Edition, Product Risk Assessment) Incorrect Options:
C: Last audit results inform program effectiveness, not inherent product risk.
D: Business financial status is considered in customer risk assessment, not product risk.
References:
CAMS 6th Edition, Product and Service Risk Assessment
FATF Guidance on Risk-Based Approach for Financial Institutions

NEW QUESTION 91
How canawareness be raisedwithincountries that do not have sanctions regulatory regimes? (Select Two.)

Restrict trade between countries that have robust AML/CFT and sanctions regulatory regimes and those that do not.

AFC (Anti-Financial Crime) and sanctions-related seminars, webinars, and training within these countries.

Enforcement and pecuniary fines against these countries.

Bilateral conversations and cooperation between governments.

Many jurisdictions lack robust sanctions frameworks, requiring international cooperation and education to improve compliance.
Option B (Correct):Educational initiatives such as AML/sanctions training and workshops help raise awareness and build capacity.
Option D (Correct):Bilateral cooperation allows knowledge-sharing and technical assistance between regulatory authorities.
Why Other Options Are Incorrect:
Option A (Incorrect):Trade restrictions may pressure non-compliant nations, but they do not directly improve sanctions awareness.
Option C (Incorrect):Enforcing fines without prior education or assistance is ineffective and may create diplomatic tensions.
Best Practices for Sanctions Awareness & Compliance:
Develop international AML/sanctions training programs for emerging markets.
Encourage diplomatic engagement to strengthen legal frameworks.
Leverage FATF’s Mutual Evaluation process to assess progress.
Reference:
FATF Recommendation 6 (Sanctions & International Cooperation)
OFAC Guidance on Sanctions Compliance for Emerging Jurisdictions
Egmont Group Guidelines on Information Sharing & Capacity Building

NEW QUESTION 92
The Money Laundering Reporting Officer (MLRO) of a life insurance company is reviewing the product risk assessment methodology.
Which of the following attributes of life insurance products would be attributed a higher risk rating?
(Select Three.)

Annuity products with a deferred income stream

Products that allow the option to change the nominated beneficiary after the commencement of the policy

Products with international health insurance coverage

Products that allow for a cash surrender value

Products that restrict the transfer of funds from one policy to another

Life insurance products vary significantly in their exposure to money laundering risk. FATF guidance and insurance-sector AML standards emphasize that flexibility, liquidity, and cross-border features increase product risk.
Products that allow changes to beneficiaries after policy inception present higher risk because criminals may initially name a legitimate beneficiary and later substitute another party to obscure the true recipient of funds. This flexibility can be exploited to disguise beneficial ownership.
Products with cash surrender values are particularly vulnerable to money laundering. Criminals may place illicit funds into policies and later redeem them, creating an appearance of legitimate insurance proceeds. This characteristic is widely recognized as a high-risk factor.
International coverage, including cross-border health insurance features, increases geographic risk exposure, particularly when funds or claims involve higher-risk jurisdictions with weaker AML controls.
By contrast, annuities with deferred income streams typically limit liquidity, reducing laundering risk.
Products that restrict fund transfers further reduce misuse potential and are considered lower risk.

NEW QUESTION 93
A law enforcement action alleged that on several trading days over the course of two months, defendants engaged in a series of copper gold, crude oil. and natural gas futures transactions on an electronic trading platform One defendant repeatedly bought future contracts at low prices from the other, and then immediately sold them back at higher prices. As a result, one defendant effectively pocketed the same amount as the other lost even though there were no changes in the open positions held by either defendant. What is a name for this typology?

Short position

Reverse flip

Bid-ask spread

Wash trading

NEW QUESTION 94
A bank has joined a public-private partnership (PPP) to work with law enforcement and regulators on combating financial crime. However, the bank’s data protection officer is concerned about sharing sensitive customer data, and the compliance officer is worried about potential delays in receiving useful information from the government. Which of the following best describes a benefit of PPPs in fighting financial crime?

PPPs improve financial crime detection and prevention by sharing intelligence between banks and law enforcement.

PPPs help banks reduce compliance costs by automating information sharing.

PPPs allow banks to manage their own suspicious activity report (SAR) filing process without the need to involve the Financial Intelligence Unit (FIU).

PPPs maximize the efficiency of the bank’s compliance program by providing real-time intelligence from law enforcement.

NEW QUESTION 95
When deciding on the frequency of periodic customer due diligence (CDD) refresh, firms should foremost consider the:

Operational burden of periodic refresh implementation

Cost of implementation

Available level of automation for the process

Risk profile of customers

NEW QUESTION 96
Which scenario presents the GREATEST risk of trade-based money laundering?

Domestic payroll processing

Import-export transactions with inconsistent invoices

Credit card bill payments

Mortgage refinancing

Trade-based money laundering commonly involves manipulation of invoices, shipping documents, and trade values. Inconsistent invoices and unusual import-export patterns may disguise movement of illicit value across borders. Institutions involved in trade finance should review shipping routes, pricing anomalies, and documentation discrepancies carefully.

NEW QUESTION 97
Which of the following risk factors are commonly associated with money laundering in insurance products? (Choose two.)

Surrendering a policy early to liquidate funds

Focusing excessively on the investment performance of an insurance product

Using a credit card to purchase an insurance policy

Using cryptocurrencies or other non-fiat currencies to fund an insurance policy

Early surrender of a policy can be used to quickly access and integrate illicit funds, while funding an insurance policy with cryptocurrencies or other non-fiat currencies can obscure the source of funds, both of which are recognized money laundering risk factors in insurance products.

NEW QUESTION 98
Which of the following is a crucial step for a financial institution when leveraging regulatory reports to improve transaction monitoring? (Select Two.)

Comparing internal data across all sectors and products referenced in the reports

Systematically incorporating risks identified in the reports into the internal risk assessment

Comparing regulatory reports with peer data

Building or enhancing monitoring scenarios based on reported crime typologies

Regulatory reports–such as those published by FATF, FIUs, and supervisory authorities–provide valuable insights into emerging money laundering and terrorist financing risks.
A crucial step is systematically integrating identified risks into the institution’s internal risk assessment. This ensures that the organization’s understanding of threats remains current and aligned with regulatory expectations.
Another key action is building or enhancing transaction monitoring scenarios based on the typologies and red flags described in regulatory reports. This directly improves detection effectiveness and responsiveness to evolving threats.
While internal benchmarking and peer comparison may be useful, they are not substitutes for directly updating risk assessments and monitoring logic based on regulatory intelligence.

NEW QUESTION 99
It is essential to identify any “family members” or “close associates” of politically exposed persons (PEPs) as part of the KYC/CDD process because they could be:

executing cross-border transactions for their own business which is not commensurate to the PEP’s wealth.

in a position to provide more information regarding the PEP’s whereabouts and hidden properties.

travelling to offshore jurisdictions often on holiday which exposes them to higher risks for AML.

used as intermediaries to facilitate bribery or corruption or to conceal the illicit wealth of the PEP.

D: “Family members and close associates of PEPs are often used as intermediaries to launder the proceeds of corruption or conceal illicit assets.”

NEW QUESTION 100
Which section of the USA PATRIOT Act relates to forfeiture of funds and allows for extraterritorial reach?

Section 319(b)

Section 314(b)

Section 314(a)

Section 319(a)

NEW QUESTION 101
A trade finance customer repeatedly imports goods at prices significantly above market value.
Which typology may this indicate?

Smurfing

Trade-based money laundering

Mortgage fraud

Cyber extortion

Trade-based money laundering often involves over- or under-invoicing goods to move value across borders while disguising illicit proceeds as legitimate trade payments. Inflated pricing without commercial justification is a common red flag. Compliance teams should analyze shipping documents, counterparties, and pricing consistency against market benchmarks.

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[Oct 31, 2026] CAMS7 Dumps Full Questions – Exam Study Guide [Q85-Q101]

ACAMS CAMS7 Exam Syllabus Topics:

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