Exam CAMS Realistic Dumps Verified Questions Free [Jul 30, 2024]
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ACAMS CAMS certification program is a valuable asset for professionals who are dedicated to preventing financial crimes. It provides individuals with the knowledge and skills needed to stay up-to-date with the latest AML regulations and best practices, and it also offers a way for professionals to demonstrate their expertise and commitment to AML compliance.
The CAMS certification exam is administered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), the world's largest AML and financial crime prevention community. ACAMS provides a wide range of resources and training to help professionals prepare for the exam, including study materials, webinars, and in-person training sessions. Certified Anti-Money Laundering Specialists certification is valid for three years, after which the individual must recertify by completing continuing education credits.
NEW QUESTION # 104
The Wolfsberg Group has issued a number of documents since its inception aiming to:
- A. provide a standardized process amongst its bank members for combatting money laundering and terrorist financing in private banking.
- B. prevent money laundering or terrorist financing by establishing consistent regulatory standards across the EU.
- C. provide advice to regulators around the world on the due diligence requirements for politically exposed persons.
- D. provide financial institutions with an industry perspective on effective financial crime risk management.
Answer: D
Explanation:
The Wolfsberg Group is an association of thirteen global banks that aims to develop guidance and standards for the management of financial crime risks. The Group has issued a number of documents since its inception to provide financial institutions with an industry perspective on effective financial crime risk management.
NEW QUESTION # 105
How does the Asian/Pacific Financial Action Task Force <FATF>-Style Regional Body help its members implement recommendations from the FATF? (Select Two.)
- A. Encourages cooperative AML efforts in the region
- B. Endorses regulations that define money laundering based on the model laws issued by the respective member states
- C. Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions
- D. Requires members to maintain lists of regional money laundering and terrorists financing issues relevant to their region
- E. Promotes laws that allow judicial challenges to seizure orders by an administrative body
Answer: A,C
Explanation:
The Asian/Pacific Financial Action Task Force-Style Regional Body (APG) helps its members implement recommendations from the FATF by facilitating the adoption and implementation of internationally accepted AML measures by member jurisdictions (CAMS Manual, 6th Edition, Page 22). The APG also encourages cooperative AML efforts in the region, which can include information-sharing and mutual evaluations to assess member compliance with FATF recommendations (CAMS Manual, 6th Edition, Page 25). Therefore, options C and D are the correct answers.
NEW QUESTION # 106
Which aspect of the USA PATRIOT Act impacts foreign financial institutions?
- A. Expanding the anti-money laundering program requirements to all foreign financial institutions
- B. Providing authority to impose special measures on institutions that are of primary money-laundering concern
- C. Requiring enhanced due diligence for foreign shell banks
- D. Expanding sanctions requirements to a U.S. financial institution's foreign branches
Answer: B
Explanation:
Reference: https://www.imf.org/external/np/leg/sem/2002/cdmfl/eng/tompki.pdf (8)
NEW QUESTION # 107
According to experts, what is the most effective way to prevent money laundering through financial institutions?
- A. Collecting information on beneficial owners and foreign customers
- B. Implementing a sound customer due diligence program
- C. Instituting a policy prohibiting the acceptance of funds intended for terrorist financing
- D. Ensuring that transaction monitoring systems can identify terrorist financing
Answer: B
NEW QUESTION # 108
When a bank performs a risk assessment, what areas should an institution focus on?
- A. The geographic locations where the institution does business
- B. The nature and breadth of the services and products the institution provides
- C. The amount of the money the institution earns prior to taxes
- D. The type and location of the institution's clients
Answer: A,B,D
Explanation:
A bank's risk assessment is a process of identifying, measuring, and mitigating the potential risks that the bank faces in its operations, products, services, and customers. According to the ACAMS Study Guide, a bank should focus on the following areas when performing a risk assessment1:
The type and location of the institution's clients. This involves analyzing the customer base, the types of accounts and transactions, the source and destination of funds, the level of due diligence and verification, and the risk profile of the customers. For example, a bank should consider whether its customers are individuals or entities, domestic or foreign, politically exposed persons, high-net-worth individuals, non-profit organizations, or cash-intensive businesses. The location of the customers may also indicate the level of exposure to money laundering, terrorist financing, sanctions, or tax evasion risks.
The nature and breadth of the services and products the institution provides. This involves evaluating the range and complexity of the products and services offered by the bank, the delivery channels, the payment methods, and the innovation and technology involved. For example, a bank should consider whether it offers wire transfers, correspondent banking, trade finance, private banking, trust and fiduciary services, prepaid cards, mobile banking, or cryptocurrency services. The nature and breadth of the services and products may also affect the level of transparency, traceability, and compliance of the transactions.
The geographic locations where the institution does business. This involves assessing the jurisdictions where the bank operates, where its customers reside, where its counterparties are located, and where the funds flow. For example, a bank should consider whether it has branches, subsidiaries, or affiliates in high-risk countries, whether it serves customers from high-risk countries, whether it engages in cross-border transactions, and whether it complies with the local laws and regulations of the countries where it does business. The geographic locations where the institution does business may also influence the level of exposure to political, legal, regulatory, or reputational risks.
References:
1: ACAMS Study Guide, Chapter 2: Risk Assessments, 1
NEW QUESTION # 109
A local law enforcement officer, who is conducting a criminal investigation, requests information about a customer.
Which two actions should the bank take? (Choose two.)
- A. Review the money laundering risk posed by the account
- B. Monitor the account for suspicious activity
- C. File a suspicious transaction report
- D. Close the account immediately
Answer: A,B
Explanation:
Explanation/Reference:
NEW QUESTION # 110
In reviewing recent transaction activity, a compliance officer for a money transmitter notices that several customers are each remitting the same amount of money but much more frequently.
How should the institution respond?
- A. Immediately contact the customers and ask them why they are remitting money more often
- B. Instruct the tellers not to process remittances for these customers in the future
- C. File a suspicious transaction report
- D. Conduct further investigation to determine whether this is truly suspicious activity
Answer: D
NEW QUESTION # 111
The Head of Compliance was informed by external auditors of a finding that indicates an element of AML policy failed to comply with the regulatory requirement. Which action should the Head of Compliance take next?
- A. Agree immediately and provide corrective actions.
- B. Inform the compliance team about the finding.
- C. Submit a corrective action plan with a target timeline.
- D. Make necessary updates to AML policy documents.
Answer: C
Explanation:
The Head of Compliance is responsible for overseeing and managing the AML compliance program of the organization. When an external auditor identifies a finding that indicates a failure to comply with a regulatory requirement, the Head of Compliance should take prompt and appropriate action to address the issue and prevent recurrence. The best course of action is to submit a corrective action plan with a target timeline to the auditor and the relevant regulator, demonstrating the organization's commitment to remediate the finding and improve its AML compliance program. The corrective action plan should include the root cause analysis of the finding, the specific actions to be taken, the responsible parties, the expected outcomes, and the deadlines for completion. The Head of Compliance should also monitor the progress of the corrective action plan and report any updates or challenges to the auditor and the regulator.
References: = Some of the references that support this answer are:
JPMorgan Chase & Co. Global Anti-Money Laundering Compliance Program, page 2: "The Firm's Global Head of Financial Crimes Compliance is responsible for overseeing the implementation and effectiveness of the AML Program and reports to the Firm's Chief Compliance Officer. ... The Global Head of Financial Crimes Compliance is also responsible for ensuring that the Firm responds appropriately to any regulatory inquiries, examinations, or investigations relating to AML matters, and that any identified issues or deficiencies are promptly remediated." The Board's Role in AML Compliance, Section "Board Oversight of AML Compliance Program": "The board should also ensure that the institution has a process in place to identify, report and correct any compliance deficiencies or violations in a timely manner. This includes ensuring that the institution responds to any regulatory inquiries, examinations or enforcement actions, and implements any required corrective actions." AML Compliance Officer: the Role, Skills, and Responsibilities, Section "AML Compliance Officer Responsibilities": "The AML Compliance Officer is also responsible for: ... Reporting to the regulators and auditors on the AML compliance program and its effectiveness; ... Developing and implementing corrective action plans for resolution of problematic issues, and providing general guidance on how to avoid or deal with similar situations in the future."
NEW QUESTION # 112
An accounting firm opened an account at a bank that is intended to be used as the operational account for the business. After a few months, a comprehensive review of the account was triggered due to unusual activity on the account. Which most likely triggered the review?
- A. The account sends monthly donations to several charities that operate in the same communities as the accounting firm.
- B. The account receives international wires from companies in the Middle East where the accounting firm has several branches.
- C. The account receives several payments a day from multiple customers who operate in different industries.
- D. The account receives international payments that are substantially higher than other fees they typically receive.
Answer: D
Explanation:
this activity is unusual and inconsistent with the expected behavior of an accounting firm's operational account. The account should normally receive fees from clients that are proportional to the services rendered and reflect the market rates. Receiving international payments that are substantially higher than other fees could indicate that the account is being used to launder money or finance terrorism by disguising illicit funds as legitimate income. This could trigger a red flag for the bank and prompt a comprehensive review of the account.
References:
ACAMS Study Guide 6th Edition, Chapter 1, Section 1.6, page 24: "Methods to launder money used in banks and other deposit taking institutions".
ExamTopics, Question 446: "An accounting firm opened an account at a bank that is intended to be used as the operational account for the business. After a few months, a comprehensive review of the account was triggered due to unusual activity on the account. Which most likely triggered the review?"
NEW QUESTION # 113
Which of the following customer activities poses the highest risk of money laundering?
- A. Making multiple cash deposits slightly below a required reporting limit.
- B. Paying a supplier of precious metals at regular quarterly intervals.
- C. Transferring funds to pay for flight training lessons.
- D. Conducting business in a country that represents a high risk of money laundering.
Answer: A
NEW QUESTION # 114
To guard against acquisition or control of a financial institution by money launderers or their associates, supervisory agencies should require
- A. prospective owners have prior experience in the area of finance.
- B. adequate surety bonds, cash deposits, or equivalencies.
- C. thorough due diligence on prospective owners.
- D. comprehensive compliance programs.
Answer: A
NEW QUESTION # 115
What is the term for trading through multiple accounts, where an individual generates offsetting profits and losses and transfers of positions through accounts that do not appear to be commonly controlled?
- A. Net Trading
- B. Ponzi scheme
- C. Wash Trading
- D. Market Manipulation
Answer: C
NEW QUESTION # 116
The purpose of an anti-money laundering program should be to do what?
- A. Focus monitoring efforts on riskier transactions and customers
- B. Avoid criticism and sanctions from government regulators
- C. Detect all illegal activity perpetrated by customers
- D. Detect and report cash structuring and suspicious wire transactions
Answer: A
NEW QUESTION # 117
What is a key objective of the Egmont Group?
- A. To provide best practices for financial institutions on how to report suspicious activity to best share the information with law enforcement.
- B. To safeguard the financial system from illicit use and combat money laundering and promote national security.
- C. To find ways to promote the development of Financial Intelligence Units and the sharing of expertise.
- D. To issue binding standards that establish consistently operated Financial Intelligence Units in member jurisdictions.
Answer: C
Explanation:
Explanation
https://egmontgroup.org/en/content/about
"The Egmont Group is a united body of 165 Financial Intelligence Units (FIUs). The Egmont Group provides a platform for the secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing (ML/TF). This is especially relevant as FIUs are uniquely positioned to cooperate and support national and international efforts to counter terrorist financing and are the trusted gateway for sharing financial information domestically and internationally in accordance with global Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) standards.
NEW QUESTION # 118
Which is a key aspect in the FATF Recommendations that best describes the essential foundation for allocating resources in AML/CFT regimes for countries and financial institutions (FIs)?
- A. Applying a risk-based approach
- B. Performing country peer-to-peer evaluations
- C. Enforcing mutual legal assistance
- D. Implementing targeted financial sanctions
Answer: A
Explanation:
The risk-based approach (RBA) is an essential foundation of the FATF Recommendations, as it allows countries, competent authorities and financial institutions to adopt a more flexible set of measures to target their resources more effectively and apply preventive measures that are commensurate to the nature of risks, in order to focus their efforts in the most effective way. The RBA is not optional, but a prerequisite for the effective implementation of the FATF Standards. The RBA requires the identification, assessment and understanding of the ML/TF risks to which the countries and FIs are exposed, and the implementation of AML/CFT measures that are proportionate and tailored to those risks. The RBA is not a "zero failure" approach, but a way to mitigate the risks in the most efficient and effective manner.
References:
FATF Recommendations, Introduction, page 11
FATF Guidance on the Risk-Based Approach to Combating Money Laundering and Terrorist Financing
- High Level Principles and Procedures, page 3
Risk-based Approach (RBA), What is the Risk-based Approach (RBA)?
NEW QUESTION # 119
FATF recommends the incorporation of some measures in customer due diligence (CDD) programs including:
- A. identifying the number of beneficial owners without the verification of their true identity.
- B. conducting the risk assessment of products and services.
- C. conducting ongoing due diligence on the business relationship and monitoring of transactions.
- D. identifying the products and services and their suitability to customers.
Answer: C
Explanation:
Reference:
https://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%202012.p (15)
NEW QUESTION # 120
Outgoing foreign transactions of similar amounts trigger a monitoring alert for a customer's accounts. During the evaluation of the accounts, the bank discovers the wire transfers were very small amounts and occurred within the last 3 months following a long period of inactivity. The wire transfers appear to originate from legal sources. To assess the potential of terrorist financing, the institution must ensure the:
- A. beneficiaries of transfers are not included on the Transparency International List.
- B. account holder presents proof the funds are legal.
- C. account holder does not reside in a country included on the U.S. State Department State Sponsors of Terrorism List.
- D. beneficiaries of transfers are not on a terrorist watch list.
Answer: D
NEW QUESTION # 121
Which method is used to launder money via wire remittances sent through a bureau de change or money services business?
- A. A customer in country A receives four small wire transfers from four different individuals located in country B on December 21. The aggregate of the wire transfers falls below the legal reporting threshold.
- B. A large number of wire transfers are sent from a large number of senders in country A to a large number of recipients in country B during the period of December 1 to December 15.
- C. A customer in country A makes frequent wire transfers to a single customer in country B that are slightly under the legal reporting threshold.
- D. A customer in country A makes a weekly small wire transfer to the bank account of an individual in country B.
Answer: C
NEW QUESTION # 122
You have a Face API solution that updates in real time. A pilot of the solution runs successfully on a small dataset.
When you attempt to use the solution on a larger dataset that continually changes, the performance degrades, slowing how long it takes to recognize existing faces.
You need to recommend changes to reduce the time it takes to recognize existing faces without increasing costs.
What should you recommend?
- A. Change the solution to use the Bing Image Search API instead of the Face API.
- B. Change the solution to use the Computer Vision API instead of the Face API.
- C. Separate training into an independent pipeline and schedule the pipeline to run daily.
- D. Distribute the face recognition inference process across many Azure Cognitive Services instances.
Answer: C
Explanation:
Explanation/Reference:
Incorrect Answers:
A: The purpose of Computer Vision is to inspects each image associated with an incoming article to (1) scrape out written words from the image and (2) determine what types of objects are present in the image.
C: The Bing API provides an experience similar to Bing.com/search by returning search results that Bing determines are relevant to a user's query. The results include Web pages and may also include images, videos, and more.
D: That would increase cost.
References:
https://github.com/Azure/cognitive-services
Design solutions
Testlet 2
Overview
Contoso, Ltd. has an office in New York to serve its North American customers and an office in Paris to serve its European customers.
Existing Environment
Infrastructure
Each office has a small data center that hosts Active Directory services and a few off-the-shelf software solutions used by internal users.
The network contains a single Active Directory forest that contains a single domain named contoso.com. Azure Active Directory (Azure AD) Connect is used to extend identity management to Azure.
The company has an Azure subscription. Each office has an Azure ExpressRoute connection to the subscription. The New York office connects to a virtual network hosted in the US East 2 Azure region. The Paris office connects to a virtual network hosted in the West Europe Azure region.
The New York office has an Azure Stack Development Kit (ASDK) deployment that is used for development and testing.
Current Business Model
Contoso has a web app named Bookings hosted in an App Service Environment (ASE). The ASE is in the virtual network in the East US 2 region. Contoso employees and customers use Bookings to reserve hotel rooms.
Data Environment
Bookings connects to a Microsoft SQL Server database named hotelDB in the New York office.
The database has a view named vwAvailability that consolidates columns from the tables named Hotels, Rooms, and RoomAvailability. The database contains data that was collected during the last 20 years.
Problem Statements
Contoso identifies the following issues with its current business model:
* European users report that access to Booking is slow, and they lose customers who must wait on the phone while they search for available rooms.
* Users report that Bookings was unavailable during an outage in the New York data center for more than 24 hours.
Requirements
Contoso identifies the following issues with its current business model:
* European users report that access to Bookings is slow, and they lose customers who must wait on the phone while they search for available rooms.
* Users report that Bookings was unavailable during on outage in the New York data center for more than 24 hours.
Business Goals
Contoso wants to provide a new version of the Bookings app that will provide a highly available, reliable service for booking travel packages by interacting with a chatbot named Butler.
Contoso plans to move all production workloads to the cloud.
Technical requirements
Contoso identifies the following technical requirements:
* Data scientists must test Butler by using ASDK.
* Whenever possible, solutions must minimize costs.
* Butler must greet users by name when they first connect.
* Butler must be able to handle up to 10,000 messages a day.
* Butler must recognize the users' intent based on basic utterances.
* All configurations to the Azure Bot Service must be logged centrally.
* Whenever possible, solutions must use the principle of least privilege.
* Internal users must be able to access Butler by using Microsoft Skype for Business.
* The new Bookings app must provide a user interface where users can interact with Butler.
* Users in an Azure AD group named KeyManagers must be able to manage keys for all Azure Cognitive Services.
* Butler must provide users with the ability to reserve a room, cancel a reservation, and view existing reservations.
* The new Bookings app must be available to users in North America and Europe if a single data center or Azure region fails.
* For continuous improvement, you must be able to test Butler by sending sample utterances and comparing the chatbot's responses to the actual intent.
NEW QUESTION # 123
Who has the ultimate responsibility within a bank for ensuring that the bank has a comprehensive and effective Bank Secrecy Act / anti-money laundering (BSA/AML) program and oversight framework that is reasonably designed to ensure compliance with applicable regulations?
- A. Senior management
- B. Board of directors
- C. BSA/AML compliance officer
- D. Business line managers
Answer: B
Explanation:
The board of directors has the ultimate responsibility within a bank for ensuring that the bank has a comprehensive and effective BSA/AML program and oversight framework that is reasonably designed to ensure compliance with applicable regulations. According to the Federal Financial Institutions Examination Council (FFIEC) BSA/AML Examination Manual, the board of directors must approve the BSA/AML compliance program, which includes the BSA/AML policy, internal controls, independent testing, designated BSA/AML compliance officer, and training1. The board of directors must also provide sufficient resources, ensure qualified staff, and hold senior management accountable for implementing and adhering to the BSA/AML compliance program1.
References:
1: FFIEC BSA/AML Examination Manual, Board of Directors and Senior Management Oversight
NEW QUESTION # 124
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