Online Access Free Advanced-CAMS-Audit Practice Test

A financial institution is auditing its correspondent banking relationships and their respective sanctions compliance programs. Which condition will merit a higher sample size assuming the correspondent banks have a moderate level of risk mitigation?

• A.A customer base changing due to a merger in the domestic market
• B.A well-known customer base m a localized environment
• C.A stable customer base in an international environment
• D.A fluctuating customer base in an international environment

During a sanction review, an auditor notes that several of the bank's large corporate clients continue to route transactions through the bank to certain Office of Foreign AssetsControl (OFAC)-sanctioned countries.The head of corporate clients stated that these transactions were executed under the OFAC license.What should an auditor know to distinguish between an OFAC general license and a specific license?

• A.A general license authorizes a type of transaction and a specific license authorizes a transaction in response to a written license application.
• B.A general license authorizes a transaction for an entity and a specific license authorizes a transaction for an individual.
• C.A specific license authorizes a type of transaction and a general license authorizes a transaction in response to a written license application.
• D.A specific license authorizes a transaction for an entity and a general license authorizes a transaction for an individual.

Which products/services increase the risk level for money laundering for XYZ Bank?

• A.Foreign exchange services
• B.Payable through accounts
• C.Letters of credit
• D.International fund transfers

The auditor finds that thecustomer risk assessment (CRA) is completed at initial onboarding and is repealed for each customer every other year. The auditor's observations should Include that the CRA should:

• A.be updated more often given the risk of the entity.
• B.allow for sales oy third patties other than advisors since most of the customers are local residents.
• C.include an assessment of jurisdiction where the customer currently resides as this may have changed.
• D.include a qualitative overlay that 95% of the products offered are subject to regulatory exemptions.

What is the role of the internal audit in the governance process?

• A.Periodically evaluate the effectiveness of processes and controls.
• B.Perform quality assurance testing of transaction monitoring.
• C.Execute the corrective action plan.
• D.Monitor the risks of noncompliance with applicable laws and regulations.