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Information
CAMS All Topics Cover:
Risks and Methods of Money Laundering
and Terrorist Financing
What is Money Laundering?
Three Stages in the Money Laundering Cycle
The Economic and Social Consequences of Money Laundering
AML/CFT Compliance Programs and Individual Accountability
Methods of Money Laundering
Banks and Other Depository Institutions
ELECTRONIC TRANSFERS OF FUNDS
REMOTE DEPOSIT CAPTURE
CORRESPONDENT BANKING
PAYABLE THROUGH ACCCOUNTS
CONCENTRATION ACCOUNTS
PRIVATE BANKING
USE OF PRIVATE INVEST COMPANIES IN PRIVATE BANKING
POLITICALLY EXPOSED PERSONS (PEPS)
STRUCTURING
Credit Unions and Building Societies
Non-Bank Financial Institutions
CREDIT CARD INDUSTRY
THIRD-PARTY PAYMENT PROCESSORS
MONEY SERVICES BUSINESSES
INSURANCE COMPANIES
SECURITIES BROKER-DEALERS
Variety and Complexity of Securities
High-risk Securities
Multiple Layers and Third-party Risk
Non-Financial Businesses and Professions
DEALERS IN HIGH VALUE ITEMS (PRECIOUS METALS, JEWELRY, ART, ETC)
TRAVEL AGENCIES
VEHICLE SELLERS
GATEKEEPERS: NOTARIES, ACCOUNTANTS, AUDITORS, AND LAWYERS
INVESTMENT AND COMMODITY ADVISORS
TRUST AND COMPANY SERVICE PROVIDERS
REAL ESTATE
International Trade Activity
FREE TRADE ZONES
TRADE-BASED MONEY LAUNDERING TECHNIQUES
BLACK MARKET PESO EXCHANGE
Risk Associated with New
Payment Products and Services
Prepaid Cards, Mobile Payments And Internet-Based Payment Services
Virtual Currency
Corporate Vehicles Used to Facilitate Illicit Finance
Public Companies and Private Limited Companies
BEARER SHARES IN CORPORATE FORMATION
Shell and Shelf Companies
Trusts
Terrorist Financing
DIFFERENCES AND SIMILARITIES BETWEEN
TERRORIST FINANCING AND MONEY LAUNDERING
DETECTING TERRORIST FINANCING
HOW TERRORISTS RAISE, MOVE AND STORE FUNDS
Use of Hawala and Other Informal Value Transfer Systems
Use of Charities or Non-Profit Organizations (NPOs)
Emerging Risks for Terrorist Financing
International AML/CFT Standards
Financial Action Task Force (FATF)
FATF Objectives
FATF Recommendations
FATF Members and Observers
Non-Cooperative Countries
The Basel Committee on Banking Supervision
History of the Basel Committee
European Union Directives on Money Laundering
FIRST DIRECTIVE
SECOND DIRECTIVE
THIRD DIRECTIVE
FOURTH DIRECTIVE
OTHER RELEVANT LEGAL DOCUMENTS
FATF-Style Regional Bodies
FATF-STYLE REGIONAL BODIES AND FATF ASSOCIATE MEMBERS
ASIA/PACIFIC GROUP ON MONEY LAUNDERING (APG)
CARIBBEAN FINANCIAL ACTION TASK FORCE (CFATF)
COMMITTEE OF EXPERTS ON THE EVALUATION OF
ANTI-MONEY LAUNDERING MEASURES (MONEYVAL)
FINANCIAL ACTION TASK FORCE OF LATIN AMERICA (GAFILAT)
INTER GOVERNMENTAL ACTION GROUP AGAINST
MONEY LAUNDERING IN WEST AFRICA (GIABA)
MIDDLE EAST AND NORTH AFRICA FINANCIAL ACTION
TASK FORCE (MENAFATF)
EURASIAN GROUP ON COMBATING MONEY LAUNDERING
AND FINANCING OF TERRORISM (EAG)
EASTERN AND SOUTH AFRICAN ANTI-MONEY LAUNDERING GROUP (ESAAMLG)
TASK FORCE ON MONEY LANDERING IN CENTRAL AFRICA (GABAC)
Organization of American States:
Inter-American Drug Abuse Control Commission
(Comisión Interamericana Para El Control Del Abuso De Drogas)
Egmont Group of Financial Intelligence Units
The Wolfsberg Group
The World Bank and the International Monetary Fund
Key US Legislative and Regulatory Initiatives
Applied to Transactions Internationally
USA PATRIOT Act
The Reach of the US Criminal Money
Laundering and Civil Forfeiture Laws
Office of Foreign Assets Control
Anti-Money Laundering/Counter-Terrorist Financing Compliance Programs
Assessing AML/CFT Risk
Maintaining an AML/CFT Risk Model
Understanding AML/CFT Risk
AML/CFT Risk Scoring
Assessing The Dynamic Risk of Customers
AML/CFT Risk Identification
CUSTOMER TYPE
GEOGRAPHIC LOCATION
PRODUCTS/SERVICES
AML/CFT Program
The Elements of an AML/CFT Program
A System of Internal Policies, Procedures, and Controls
AML POLICIES, PROCEDURES, AND CONTROLS
The Compliance Function
The Designation and Responsibilities of A Compliance Officer
COMMUNICATION
DELEGATION OF AML DUTIES
COMPLIANCE OFFICER ACCOUNTABILITY
AML/CFT Training
COMPONENTS OF AN EFFECTIVE TRAINING PROGRAM
WHO TO TRAIN
WHAT TO TRAIN ON
HOW TO TRAIN
WHEN TO TRAIN
WHERE TO TRAIN
Independent Audit
EVALUATING AN AML/CFT PROGRAM
Establishing a Culture of Compliance
Know Your Customer
CUSTOMER DUE DILIGENCE
MAIN ELEMENTS OF A CUSTOMER DUE DILIGENCE PROGRAM
ENHANCED DUE DILIGENCE
ENHANCED DUE DILIGENCE FOR HIGHER-RISK CUSTOMERS
ACCOUNT OPENING, CUSTOMER IDENTIFICATION AND VERIFICATION
CONSOLIDATED CUSTOMER DUE DILIGENCE
Economic Sanctions
UNITED NATIONS
EUROPEAN UNION
UNITED STATES
Sanctions List Screening
Politically Exposed Persons Screening
Know Your Employee
Suspicious or Unusual Transaction Monitoring and Reporting
Automated AML/CFT Solutions
Money Laundering and Terrorist Financing Red Flags
UNUSUAL CUSTOMER BEHAVIOR
UNUSUAL CUSTOMER IDENTIFICATION CIRCUMSTANCES
UNUSUAL CASH TRANSACTIONS
UNUSUAL NON-CASH DEPOSITS
UNUSUAL WIRE TRANSFER TRANSACTIONS
UNUSUAL SAFE DEPOSIT BOX ACTIVITY
UNUSUAL ACTIVITY IN CREDIT TRANSACTIONS
UNUSUAL COMMERCIAL ACCOUNT ACTIVITY
UNUSUAL TRADE FINANCING TRANSACTIONS
UNUSUAL INVESTMENT ACTIVITY
OTHER UNUSUAL CUSTOMER ACTIVITY
UNUSUAL EMPLOYEE ACTIVITY
UNUSUAL ACTIVITY IN A MONEY REMITTER/
CURRENCY EXCHANGE HOUSE SETTING
UNUSUAL ACTIVITY FOR VIRTUAL CURRENCY
UNUSUAL ACTIVITY IN AN INSURANCE COMPANY SETTING
UNUSUAL ACTIVITY IN A BROKER-DEALER SETTING
UNUSUAL REAL ESTATE ACTIVITY
UNUSUAL ACTIVITY FOR DEALERS OF
PRECIOUS METALS AND HIGH-VALUE ITEMS
UNUSUAL ACTIVITY INDICATIVE OF TRADE-BASED MONEY LAUNDERING
UNUSUAL ACTIVITY INDICATIVE OF HUMAN SMUGGLING
UNUSUAL ACTIVITY INDICATIVE OF HUMAN TRAFFICKING
UNUSUAL ACTIVITY INDICATIVE OF POTENTIAL TERRORIST FINANCING
CONDUCTING AND RESPONDING TO INVESTIGATIONS
Investigations Initiated by the Financial Institution
Sources of Investigations
REGULATORY RECOMMENDATIONS OR OFFICIAL FINDINGS
TRANSACTION MONITORING
REFERRALS FROM CUSTOMER-FACING EMPLOYEES
INTERNAL HOTLINES
NEGATIVE MEDIA INFORMATION
RECEIPT OF A GOVERNMENTAL SUBPOENA OR SEARCH WARRANT
SUBPOENA
SEARCH WARRANT
ORDERS TO RESTRAIN OR FREEZE ACCOUNTS OR ASSETS
Conducting the Investigation
UTILIZING THE INTERNET WHEN
CONDUCTING FINANCIAL INVESTIGATIONS
STR Decision-Making Process
FILING AN STR
QUALITY ASSURANCE
STR FILING OVERSIGHT/ESCALATION
Closing the Account
Communicating with Law Enforcement on STRs
Investigations Initiated by Law Enforcement
Decision to Prosecute a Financial Institution
for Money Laundering Violations
Responding to a Law Enforcement Investigation
Against a Financial Institution
Monitoring a Law Enforcement Investigation
Against a Financial Institution
Cooperating with Law Enforcement During
an Investigation Against a Financial Institution
Obtaining Counsel for an Investigation
Against a Financial Institution
RETAINING COUNSEL
ATTORNEY-CLIENT PRIVILEGE APPLIED TO ENTITIES AND INDIVIDUALS
DISSEMINATION OF A WRITTEN REPORT BY COUNSEL
Notices to Employees as a Result of an
Investigation Against a Financial Institution
Interviewing Employees as a Result of a Law Enforcement
Investigation Against a Financial Institution
Media Relations
AML/CFT Cooperation between Countries
FATF Recommendations on Cooperation between Countries
International Money Laundering Information Network
Mutual Legal Assistance Treaties
Financial Intelligence Units
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Question 1 of 30
1. Question
Mr. Johnson, a used car dealer, frequently receives large cash payments from buyers. What should Mr. Johnson consider to mitigate the risk of money laundering?
Correct
According to the Bank Secrecy Act (BSA), vehicle sellers like Mr. Johnson are required to report cash transactions exceeding $10,000 to FinCEN (31 CFR § 1020.315). This reporting requirement helps in detecting and preventing money laundering activities by monitoring large cash transactions.
Incorrect
According to the Bank Secrecy Act (BSA), vehicle sellers like Mr. Johnson are required to report cash transactions exceeding $10,000 to FinCEN (31 CFR § 1020.315). This reporting requirement helps in detecting and preventing money laundering activities by monitoring large cash transactions.
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Question 2 of 30
2. Question
How can notaries and lawyers contribute to anti-money laundering efforts?
Correct
Notaries and lawyers are considered gatekeepers under the CAMS exam guidelines. They play a crucial role by reporting suspicious transactions to law enforcement agencies as required under the BSA (31 CFR § 1020.320).
Incorrect
Notaries and lawyers are considered gatekeepers under the CAMS exam guidelines. They play a crucial role by reporting suspicious transactions to law enforcement agencies as required under the BSA (31 CFR § 1020.320).
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Question 3 of 30
3. Question
A client requests an investment advisor to invest in a high-risk jurisdiction known for its weak anti-money laundering controls. What should the advisor do?
Correct
Investment advisors must conduct risk assessments before accepting clients or investments, especially when dealing with high-risk jurisdictions. This aligns with the Financial Action Task Force (FATF) guidance on risk-based approach to combating money laundering and terrorist financing.
Incorrect
Investment advisors must conduct risk assessments before accepting clients or investments, especially when dealing with high-risk jurisdictions. This aligns with the Financial Action Task Force (FATF) guidance on risk-based approach to combating money laundering and terrorist financing.
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Question 4 of 30
4. Question
What due diligence measures should trust and company service providers undertake when establishing business relationships?
Correct
Trust and company service providers must identify and verify the beneficial owners of their clients and conduct ongoing monitoring as per the BSA (31 CFR § 1020.220).
Incorrect
Trust and company service providers must identify and verify the beneficial owners of their clients and conduct ongoing monitoring as per the BSA (31 CFR § 1020.220).
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Question 5 of 30
5. Question
How does money laundering through real estate transactions typically occur?
Correct
Money laundering in real estate often involves using complex ownership structures like shell companies to obscure the true ownership of properties, making it difficult to trace the illicit funds (31 CFR § 1020.210).
Incorrect
Money laundering in real estate often involves using complex ownership structures like shell companies to obscure the true ownership of properties, making it difficult to trace the illicit funds (31 CFR § 1020.210).
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Question 6 of 30
6. Question
What are common red flags indicating potential trade-based money laundering?
Correct
Trade-based money laundering involves manipulating the value or volume of goods traded to move value across borders and evade detection. Monitoring for over- or under-invoicing is crucial to detecting such schemes (31 CFR § 1020.650).
Incorrect
Trade-based money laundering involves manipulating the value or volume of goods traded to move value across borders and evade detection. Monitoring for over- or under-invoicing is crucial to detecting such schemes (31 CFR § 1020.650).
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Question 7 of 30
7. Question
How do free trade zones pose risks for money laundering?
Correct
Free trade zones provide opportunities for goods to enter and exit with minimal customs scrutiny, making them susceptible to trade-based money laundering schemes (FATF Recommendations 9 and 10).
Incorrect
Free trade zones provide opportunities for goods to enter and exit with minimal customs scrutiny, making them susceptible to trade-based money laundering schemes (FATF Recommendations 9 and 10).
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Question 8 of 30
8. Question
What is the purpose of using trade finance in money laundering?
Correct
Trade finance can be abused to disguise the origin of illicit funds by manipulating the value or volume of goods traded, creating complex payment and shipping arrangements (FATF Trade-Based Money Laundering Typologies Report).
Incorrect
Trade finance can be abused to disguise the origin of illicit funds by manipulating the value or volume of goods traded, creating complex payment and shipping arrangements (FATF Trade-Based Money Laundering Typologies Report).
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Question 9 of 30
9. Question
How does the black market peso exchange system facilitate money laundering?
Correct
The black market peso exchange system involves using legitimate trade transactions to launder illicit funds by converting them into foreign currency and depositing them into accounts (FATF Report on Money Laundering Trends).
Incorrect
The black market peso exchange system involves using legitimate trade transactions to launder illicit funds by converting them into foreign currency and depositing them into accounts (FATF Report on Money Laundering Trends).
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Question 10 of 30
10. Question
What are the risks associated with new payment technologies in the context of money laundering?
Correct
New payment technologies may offer increased speed and convenience but can also pose risks such as limited anonymity, potentially facilitating money laundering activities. Regulators emphasize the need for adequate controls and oversight (FATF Guidance on Virtual Assets and Virtual Asset Service Providers).
Incorrect
New payment technologies may offer increased speed and convenience but can also pose risks such as limited anonymity, potentially facilitating money laundering activities. Regulators emphasize the need for adequate controls and oversight (FATF Guidance on Virtual Assets and Virtual Asset Service Providers).
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Question 11 of 30
11. Question
Mr. Johnson, a compliance officer at a financial institution, notices a surge in transactions involving a new mobile payment service. Customers are transferring large sums internationally within minutes. What should Mr. Johnson consider as potential red flags under CAMS guidelines?
Correct
According to the Financial Action Task Force (FATF) guidelines, rapid and large international transfers via new payment services can indicate potential money laundering. FATF recommends enhanced due diligence in such cases to mitigate risks (FATF Recommendation 16).
Incorrect
According to the Financial Action Task Force (FATF) guidelines, rapid and large international transfers via new payment services can indicate potential money laundering. FATF recommends enhanced due diligence in such cases to mitigate risks (FATF Recommendation 16).
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Question 12 of 30
12. Question
A financial institution has seen an increase in reloadable prepaid card transactions from various individuals linked to jurisdictions known for high corruption risks. What action should the compliance officer take?
Correct
According to CAMS guidelines, prepaid cards are vulnerable to money laundering due to anonymity and ease of use. Transactions from high-risk jurisdictions should trigger enhanced due diligence to detect and prevent illicit activities (CAMS Study Guide).
Incorrect
According to CAMS guidelines, prepaid cards are vulnerable to money laundering due to anonymity and ease of use. Transactions from high-risk jurisdictions should trigger enhanced due diligence to detect and prevent illicit activities (CAMS Study Guide).
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Question 13 of 30
13. Question
An online gaming platform accepts payments in virtual currencies like Bitcoin. What should the compliance officer consider regarding AML risks?
Correct
Virtual currencies pose inherent AML risks due to their pseudonymous nature. CAMS guidelines emphasize conducting risk-based due diligence, including monitoring and reporting suspicious activities related to virtual currencies (CAMS Exam Prep).
Incorrect
Virtual currencies pose inherent AML risks due to their pseudonymous nature. CAMS guidelines emphasize conducting risk-based due diligence, including monitoring and reporting suspicious activities related to virtual currencies (CAMS Exam Prep).
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Question 14 of 30
14. Question
A private investment firm registers a high number of offshore companies in jurisdictions with minimal regulatory oversight. What should the compliance officer investigate further?
Correct
Offshore companies can be used to conceal beneficial ownership and facilitate money laundering. Under CAMS guidelines, identifying beneficial owners and understanding the purpose of offshore structures is crucial in preventing illicit finance (CAMS Certification Guide).
Incorrect
Offshore companies can be used to conceal beneficial ownership and facilitate money laundering. Under CAMS guidelines, identifying beneficial owners and understanding the purpose of offshore structures is crucial in preventing illicit finance (CAMS Certification Guide).
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Question 15 of 30
15. Question
A publicly traded company reports significant cash transactions without clear business purposes. What action should the compliance officer consider?
Correct
CAMS guidelines require stringent monitoring of cash transactions by public companies to detect potential money laundering activities. Reviewing internal policies ensures compliance with AML regulations and effective reporting of suspicious transactions (CAMS Study Materials).
Incorrect
CAMS guidelines require stringent monitoring of cash transactions by public companies to detect potential money laundering activities. Reviewing internal policies ensures compliance with AML regulations and effective reporting of suspicious transactions (CAMS Study Materials).
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Question 16 of 30
16. Question
A law firm advises clients on forming companies with bearer shares. What should the compliance officer consider regarding AML risks associated with bearer shares?
Correct
Bearer shares can obscure beneficial ownership and facilitate illicit finance. CAMS guidelines recommend conducting thorough due diligence on bearer shareholders to mitigate AML risks and ensure compliance with regulatory requirements (CAMS Certification Handbook).
Incorrect
Bearer shares can obscure beneficial ownership and facilitate illicit finance. CAMS guidelines recommend conducting thorough due diligence on bearer shareholders to mitigate AML risks and ensure compliance with regulatory requirements (CAMS Certification Handbook).
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Question 17 of 30
17. Question
A real estate developer frequently uses shell companies to acquire properties. What should the compliance officer consider regarding AML risks associated with shell companies?
Correct
Shell companies can be used to obscure beneficial ownership and facilitate money laundering in real estate transactions. CAMS guidelines emphasize conducting enhanced due diligence to detect and prevent illicit activities involving shell companies (CAMS Exam Study Guide).
Incorrect
Shell companies can be used to obscure beneficial ownership and facilitate money laundering in real estate transactions. CAMS guidelines emphasize conducting enhanced due diligence to detect and prevent illicit activities involving shell companies (CAMS Exam Study Guide).
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Question 18 of 30
18. Question
A wealth management firm manages assets for a trust with beneficiaries in various jurisdictions. What should the compliance officer consider regarding AML risks associated with trusts?
Correct
Trust structures can obscure beneficial ownership, making them vulnerable to money laundering. CAMS guidelines recommend conducting enhanced due diligence on trust beneficiaries to mitigate AML risks and ensure compliance with regulatory requirements (CAMS Study Materials).
Incorrect
Trust structures can obscure beneficial ownership, making them vulnerable to money laundering. CAMS guidelines recommend conducting enhanced due diligence on trust beneficiaries to mitigate AML risks and ensure compliance with regulatory requirements (CAMS Study Materials).
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Question 19 of 30
19. Question
A charity organization receives a significant donation from an individual with ties to known terrorist groups. What should the compliance officer consider regarding AML risks associated with charitable donations?
Correct
Charitable donations can be exploited for terrorist financing. CAMS guidelines emphasize conducting due diligence on donors and transactions involving charitable organizations to detect and prevent illicit financing activities (CAMS Exam Prep Guide).
Incorrect
Charitable donations can be exploited for terrorist financing. CAMS guidelines emphasize conducting due diligence on donors and transactions involving charitable organizations to detect and prevent illicit financing activities (CAMS Exam Prep Guide).
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Question 20 of 30
20. Question
Compare and contrast the AML risks associated with prepaid cards and virtual currencies. Which of the following statements is correct?
Correct
Prepaid cards and virtual currencies pose significant AML risks due to anonymity and ease of use. Both require financial institutions to conduct enhanced due diligence to mitigate these risks and comply with AML regulations (FATF Recommendations).
Incorrect
Prepaid cards and virtual currencies pose significant AML risks due to anonymity and ease of use. Both require financial institutions to conduct enhanced due diligence to mitigate these risks and comply with AML regulations (FATF Recommendations).
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Question 21 of 30
21. Question
Mr. Thompson, a compliance officer at a financial institution, notices unusual transactions involving a client known for charitable donations. Upon investigation, he finds that these transactions are being used to finance terrorism through legitimate-looking donations. What should Mr. Thompson do according to CAMS guidelines?
Correct
According to CAMS guidelines, suspicious activities, even those disguised as charitable donations, must be reported promptly to the FIU under anti-money laundering and terrorist financing regulations. The Financial Action Task Force (FATF) recommends robust measures to detect and prevent such activities (FATF Recommendation 8).
Incorrect
According to CAMS guidelines, suspicious activities, even those disguised as charitable donations, must be reported promptly to the FIU under anti-money laundering and terrorist financing regulations. The Financial Action Task Force (FATF) recommends robust measures to detect and prevent such activities (FATF Recommendation 8).
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Question 22 of 30
22. Question
Ms. Garcia, a compliance analyst, notices small but frequent transactions from various accounts linked to a single individual, each just below the reporting threshold. What should Ms. Garcia do to investigate potential terrorist financing?
Correct
CAMS guidelines require enhanced scrutiny for transactions structured to avoid reporting thresholds, as these could indicate attempts to finance terrorist activities through smaller, seemingly innocent transactions (FATF Recommendation 10).
Incorrect
CAMS guidelines require enhanced scrutiny for transactions structured to avoid reporting thresholds, as these could indicate attempts to finance terrorist activities through smaller, seemingly innocent transactions (FATF Recommendation 10).
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Question 23 of 30
23. Question
Mr. Roberts, a compliance officer, identifies a customer transferring funds through Hawala, an informal value transfer system. What action should Mr. Roberts take under CAMS regulations?
Correct
CAMS guidelines emphasize the need for enhanced due diligence when dealing with transactions through informal value transfer systems like Hawala, which are susceptible to misuse for terrorist financing (FATF Recommendation 13).
Incorrect
CAMS guidelines emphasize the need for enhanced due diligence when dealing with transactions through informal value transfer systems like Hawala, which are susceptible to misuse for terrorist financing (FATF Recommendation 13).
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Question 24 of 30
24. Question
Ms. Nguyen, a compliance specialist, discovers large, irregular donations to a charity with no clear source of funds. What should Ms. Nguyen do under CAMS guidelines?
Correct
CAMS regulations require reporting of suspicious donations to charities or NPOs, as they can be exploited for money laundering and terrorist financing (FATF Recommendation 8).
Incorrect
CAMS regulations require reporting of suspicious donations to charities or NPOs, as they can be exploited for money laundering and terrorist financing (FATF Recommendation 8).
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Question 25 of 30
25. Question
Mr. Khan, a compliance officer, notices an increase in online crowdfunding campaigns for humanitarian causes, some of which lack transparency. What should Mr. Khan do according to CAMS guidelines?
Correct
CAMS guidelines emphasize verifying the transparency of crowdfunding campaigns to prevent misuse for terrorist financing or money laundering purposes, aligning with FATF’s objective to monitor emerging risks (FATF Objective).
Incorrect
CAMS guidelines emphasize verifying the transparency of crowdfunding campaigns to prevent misuse for terrorist financing or money laundering purposes, aligning with FATF’s objective to monitor emerging risks (FATF Objective).
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Question 26 of 30
26. Question
Ms. Scott, a compliance specialist, identifies a series of transactions through Hawala that appear to be legitimate business payments. What should Ms. Scott do under CAMS regulations?
Correct
CAMS guidelines mandate reporting of transactions through informal value transfer systems like Hawala to the FIU to mitigate the risk of money laundering and terrorist financing (FATF Recommendations).
Incorrect
CAMS guidelines mandate reporting of transactions through informal value transfer systems like Hawala to the FIU to mitigate the risk of money laundering and terrorist financing (FATF Recommendations).
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Question 27 of 30
27. Question
Mr. Johnson, a compliance officer at a financial institution, receives a large deposit from an overseas client without clear documentation of the source of funds. What steps should Mr. Johnson take according to CAMS guidelines?
Correct
CAMS guidelines require verifying the source of funds for large deposits to prevent money laundering and terrorist financing, ensuring compliance with international AML/CFT standards (FATF Recommendations).
Incorrect
CAMS guidelines require verifying the source of funds for large deposits to prevent money laundering and terrorist financing, ensuring compliance with international AML/CFT standards (FATF Recommendations).
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Question 28 of 30
28. Question
Ms. Lewis, a compliance analyst, is reviewing her bank’s procedures. According to FATF recommendations, what should be the scope of a risk-based approach to AML/CFT?
Correct
FATF recommends a risk-based approach to AML/CFT, where due diligence measures are proportionate to the assessed risk of money laundering or terrorist financing (FATF Recommendation 1).
Incorrect
FATF recommends a risk-based approach to AML/CFT, where due diligence measures are proportionate to the assessed risk of money laundering or terrorist financing (FATF Recommendation 1).
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Question 29 of 30
29. Question
Mr. Lee, a compliance officer, attends a seminar on FATF guidelines. What is the primary objective of FATF’s recommendations?
Correct
FATF’s primary objective is to set standards and promote effective implementation of measures to combat money laundering and terrorist financing globally (FATF Objectives).
Incorrect
FATF’s primary objective is to set standards and promote effective implementation of measures to combat money laundering and terrorist financing globally (FATF Objectives).
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Question 30 of 30
30. Question
Ms. Patel, a compliance manager, works for a multinational bank operating in multiple jurisdictions. What international standards should Ms. Patel follow according to CAMS guidelines?
Correct
CAMS requires adherence to FATF’s international standards for anti-money laundering and combating the financing of terrorism (FATF Recommendations).
Incorrect
CAMS requires adherence to FATF’s international standards for anti-money laundering and combating the financing of terrorism (FATF Recommendations).