Online Access Free CAMS Practice Test

Outgoing foreign transactions of similar amounts trigger a monitoring alert for a customer's accounts. During the evaluation of the accounts, the bank discovers the wire transfers were very small amounts and occurred within the last 3 months following a long period of inactivity. The wire transfers appear to originate from legal sources. To assess the potential of terrorist financing, the institution must ensure the

• A.beneficiaries of transfers are not on a terrorist watch list.
• B.account holder presents proof the funds are legal.
• C.account holder does not reside in a country included on the U.S. State Department State Sponsors of Terrorism List.
• D.beneficiaries of transfers are not included on the Transparency International List.

Whichsituation involving a vendorpresentsincreased AML and/or sanctions riskto an organization?

• A.The vendor provides services toend users located in an area subject to economic sanctions.
• B.The vendor hasno individuals that own or control more than 10% of the company.
• C.The vendor isorganized as a privately held company.
• D.The vendor's sales representative was a refugee from asanctioned jurisdictionas a child.

A customer's registered business activity is a domestic carpet cleaning company. Besides domestic receipts, there are incoming weekly transactions from an international reputable auction house starting at 15,000 USD and averaging 30,000 USD. The matching cash outgoings amount to
90% of the incoming deposits to non-related individuals. Which is most
concerning for potential money laundering?

• A.The customer's international incomings are from an international reputable antique auction house.
• B.The customer is paying 90% of the incoming proceeds to non-related individuals in cash.
• C.The customer's initial international receipt has increased from 15,000 USD to an average of 30,000 USD per transaction per week.
• D.The customer is a domestic carpet cleaning company.

TheBasel Committee on Banking Supervisionpublished guidelines on the"Sound Management of Risks Related to Money Laundering and Financing of Terrorism." With regard toidentifying and accepting customers, it recommends that banks: (Select Two.)

• A.Establish policies and procedures that encourage processing transactions while due diligence information is being established and verified.
• B.Establish policies and procedures for customer due diligence that vary based on risk.
• C.Establish policies and procedures to identify and verify customers, beneficial owners, and any individuals that can transact on behalf of their customers.
• D.Establish policies and procedures to ensure due diligence activities are identical for all customers.
• E.Are prohibited from offering numbered accounts to customers, even if procedures are established to gather and maintain due diligence information.

A compliance officer is reviewing transactions related to a company suspected of being involved in wildlife trafficking. Which of activities below are common in wildlife trafficking schemes? (Select Two.)

• A.Exchanging fiat currency to cryptocurrency to accomplish payment to the wildlife farm
• B.Activity involving politically exposed persons with environmental, game, or forestry oversight
• C.Payment of transportation charges using a fraudulent financial instrument
• D.Large dollar wire transfers between wildlife farms and firms operating in inconsistent lines of business
• E.Customer requests payment of proceeds to an unrelated third party