Online Access Free CAMS Practice Test

Which of the followingcorporate structurespresent ahigher money laundering riskdue toreduced transparency?
(Select Three.)

• A.Aprivate company with no activityin a tax haven jurisdiction.
• B.Acompany with bearer sharesincorporated in a tax haven jurisdiction.
• C.Alimited liability company (LLC) incorporated in a foreign jurisdiction.
• D.Aprivate investment company incorporated in a tax haven jurisdiction with strict secrecy laws.
• E.Acompany with nominee shareholders and directorsin a local jurisdiction.

One of the red flags of microstructuring is:

• A.frequent visits to make cash deposits of nominal amounts.
• B.single activity in an account immediately following the opening of the account.
• C.check deposits followed by ATM withdrawals using debt card in retail store.
• D.depositing sequentially numbered checks.

Three individuals enter a casino and use cash to purchase chips worth 20,000 USD. The trio uses 200 USD in chips to play games and then combine their funds to request a casino cheque. What is the potential red flag that alludes to money laundering?

• A.The trio engage in minimal gambling and combine the funds to request a casino cheque for the chips presented.
• B.The trio uses chips worth 200 USD to gamble before requesting the refund.
• C.The trio purchased chips worth 20,000 USD and requested a casino cheque for the remaining chips.
• D.The trio purchased the chips with cash and proceeded to gamble.

A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer's accounts, you notice that credit card receipts have increased with no .
The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction on a patio dining area.
Which red flag should trigger additional investigation?

• A.Privately-owned ATM
• B.Construction of the new patio dining area
• C.Increased credit card receipts
• D.Lower cash deposits

What reputational risk consequence could a financial entity face for violating AML laws?

• A.Seizure of assets
• B.Increased audit costs to monitor behavior
• C.Monetary penalties
• D.Loss of high-profile customers