Online Access Free CAMS Practice Test

Which action should financial institutions with cross border correspondent banking activity be required to perform according to the Financial Action Task Force 40 Recommendations?

• A.Obtain senior management approval before establishing the relationship
• B.Identify natural persons who own or control more than 5%
• C.Obtain a third party independent review of the respondent's anti-money laundering program
• D.Gather a list of their politically exposed customers

An example of an external factor that will affect an organization's AML risk is:

• A.acceptance of new customer types.
• B.introduction of mobile banking for all clients.
• C.political system changes in a specific jurisdiction.
• D.introduction of a new product which will be offered to a wide range of clients.

What are the European Union Directives on Money Laundering?

• A.They are voluntary codes of best practice for the financial sector
• B.They are written by the Wolfsberg Group
• C.They require members to implement certain laws of prevent money laundering
• D.They require financial institutions to report suspicious activity to the Egmont Group in Brussels

A bank is preparing for a regulatory exam after a previous regulatory exam identified weaknesses in the bank's AML program. Since the last exam, the bank has improved the written AML program, hired an experienced AML compliance officer, and has taken actions to demonstrate a strong culture of compliance.
The bank is now focused on getting through their transaction monitoring case backlog and completing enhancements to its sanctions screening program.
Which of the following are correct? (Select Two.)

• A.The bank is likely to face secondary sanctions from global financial institutions despite addressing many of the previous concerns.
• B.The regulatory agency may require the bank's board of directors to publicly share the actions taken to address the previous concerns in order to limit its reputational risk.
• C.The bank is protected from reputational risk arising from any regulatory action because regulatory orders must remain confidential.
• D.The bank may face civil or criminal penalties if it is unable to demonstrate sustained improvement in addressing the previous concerns.
• E.The bank may face the risk of regulatory orders to remediate its AML program despite addressing many of the previous concerns.

AFinancial Intelligence Unit (FIU)in a country has received aSuspicious Activity Report (SAR)involving significant suspicious fund transfers,both domestically and internationally. TheFIU requires additional information from a foreign countryto determine whether the matter needs to be referred for prosecution locally.
Which of the following statements istruein this scenario?

• A.Any information related to money laundering can bereceived from any organization at any time, regardless of jurisdiction.
• B.Countries that are members of the Egmont Group can request assistancefor information from each other.
• C.It isagainst international lawson data protection to access information from foreign countries.
• D.Sovereignty of nations means thatinformation cannot be accessed from foreign countries.