Free CAMS – Certified Anti-Money Laundering Specialist Practice Test Question

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  File a suspicious transaction report on the account owner(s)
  

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  Maintain account records for at least five years after the request expires
  

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  Ask for a written request from the law enforcement agency that defines the duration
  

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  Stop filing suspicious transaction reports because law enforcement will be monitoring the account

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  Business registry activities state promotion of environmental protection
  

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  High number of transactions through company's connected bank accounts
  

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  Paper packaging demand production
  

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  Expeditious shipment of wood to far away jurisdictions
  
  Expeditious shipment of wood to far away jurisdictions,

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  Use of heavy machinery in non-protected areas
  
  Use of heavy machinery in non-protected areas, and

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  Executive's association with politically exposed persons
  Executive's association with politically exposed persons. These red flags could be indicative of attempts to conceal the origin of illegally harvested wood and to avoid detection by government authorities.
  

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  Internal control
  

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  Customer acceptance policy
  

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  Code of conduct
  

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  Risk appetite
  

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  Risk management

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  Diminished reputation

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  Industry of regulatory sanctions

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  Charges of deceptive business practices

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  Higher marketing and public relations costs
  
  

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  Transfer between customers

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  Casual customers

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  Improper use of third parties as customers

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  Customer from a high-risk country

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  Use of casino deposit accounts by the customer
  
  

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  Any new trends, developments, or risks

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  Results of the previous year’s risk assessment

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  Changes to internal policies, procedures, and processes

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  Links to enforcement actions identifying violations in other financial institutions
  
  

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  It must be retained for at least five years

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  It must be retained for at least seven years

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  It must be kept in a manner so that it can be provided promptly

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  It must only be released to the government through a subpoena process
  
  

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  MLATs are neither public nor binding under international law.
  

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  MLATs cannot be used for obtaining banking records from treaty partners.
  

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  MLATs do not provide a legal basis for transmitting evidence.
  

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  MLATs only involve two countries.
  
  only involving two countries,

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  MLATs cooperatively combat crime between countries.
  
  cooperatively combating crime between countries, and

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  MLATs are useful for gathering evidence and intelligence in a foreign country.
  being useful for gathering evidence and intelligence in a foreign country. MLATs are public and binding under international law (A), can be used for obtaining banking records from treaty partners (B), and provide a legal basis for transmitting evidence ©.
  

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  The customer transfers 100.000 USD to another personal bank account located outside the customer's resident country,
  

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  The customer requests the cashing out of the winnings in checks under 10.000 USD.
  

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  The customer transfers all the winnings to another personal bank account located outside the customer's resident country.
  

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  The customer requests the cashing out of the winnings in a single check.
  

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  The customer transfers 50.000 USD to another personal bank account located in the customer's resident country.

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  casinos, when customers engage in financial transactions equal to or above a designated Threshold
  

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  Real estate agents when they are involved in transactions for clients concerning buying and selling properties
  

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  Dealers in art, when they engage in any cash transaction with a customer at or above a designated threshold
  

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  Trust and company service providers
  

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  train all staff to enable them to respond to subpoenas.
  

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  hand over documents that are protected by attorney-client privilege
  

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  freeze the identified account immediately
  

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  have an audit trail system to produce requested documentation

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  File a suspicious transaction report
  

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  Diminish the importance of the subjective Transparency International rating
  

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  Conduct a trade-price manipulation analysis
  

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  Develop a system to monitor all the activity
  

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  To identify risk considerations for sharing information based on Fl changes
  

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  To ensure an accurate reflection of the Fl's money laundering and other illicit financial activity risks
  

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  To satisfy law enforcement when reporting suspicious activity
  

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  To ensure the Fl's alignment with the board-approved strategic plan

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  FIs must retain copies of SARs/STRs and supporting documentation for five years from the date of filing the STRs.

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  FIs cannot share customer information at all since it is confidential.

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  Financial institutions (FIs) should establish sufficient safeguards concerning the confidentiality of information shared for AML purposes.

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  FIs must require approval from regulators to share SARs/STRs information and supporting documentation.
  
  

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  maintain systems to detect suspicious transactions based on a customer's velocity and volume patterns.
  

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  refuse to conduct ongoing business with a customer who fails to provide proper identification documentation.
  

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  obtain the information to establish the identity of a customer, beneficial owners, and any person acting on behalf of the customer,
  

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  file a suspicious activity report when there is reason to believe the bank is being used for criminal activity.

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  depositing sequentially numbered checks.
  

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  check deposits followed by ATM withdrawals using debt card in retail store.
  

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  single activity in an account immediately following the opening of the account.
  

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  frequent visits to make cash deposits of nominal amounts.

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  ensure the appointment of a qualified chief AML officer.

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  create a culture of compliance based on the profit expectation.

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  manage the day-to-day processes of the compliance program.

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  hire a third-party firm to be responsible for the AML compliance.
  
  

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  Using cash to buy multiple cashier's checks over a period of time
  

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  Using cashier's checks in the transactions with the real estate investment company's account
  

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  Performing operations with real estate investment companies
  

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  Receiving electronic transfers for 10.000 USD amounts from other financial institutions

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  Confirm the beneficiary and account number

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  Request to obtain further information

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  Escalate to management

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  Verify the source of the funds involved
  
  

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  the timely dissemination of cases to law enforcement agencies.
  

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  responding to requests from law enforcement agencies for information contained in regulatory reports.
  

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  sharing evidence with other FIUs.
  

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  receiving confirmed reports about committed crimes from accountable and reporting institutions.