Free Practice Questions for ACAMS CAMS Exam

Establishing dual controls and quality assurance practices when processing transactions for the client

Considering what additional safeguards may be required when client instructions are given through another TCSP located in another jurisdiction

Requiring the client to complete and submit an AML risk self-assessment to the jurisdiction’s Financial Intelligence Unit (FIU)

Gathering and recording information from clients to understand the purpose of the legal entity, as well as the identity of managers and ultimate beneficial owners

Establishing procedures to document the basis on which the TCSP will act as a registered officer for the client and retaining records of that involvement

Conducting an onsite evaluation of the client to assess internal controls

Only commit to action plans that require no new investment to maximize shareholder value

Draft action plans in consultation with the jurisdiction's FIU to remain aligned with other similar companies

Only commit to action plans that can be implemented and closed within the three-month management reporting cycle

Draft action plans to address the root cause of the deficiencies, regardless of how long they will take to fully implement

Question their co-worker to determine If their suspicions are correct before reporting to the Fl's Human Resources department

Use the Fl's whistle blowing channel to report the suspected employee

Warn colleagues and customers of the F1 that the employee's suspicious financial investment proposals could be a scam

Conduct an open-source intelligence investigation using artificial intelligence tools to gain more information on the activities of the suspected employee

Report the suspected employee to the line manager of the F1 to take the required action

They should be referenced and integrated appropriately into an organization’s risk assessment to tailor enhanced due diligence (EDD) procedures and allocate resources effectively

They provide general guidance but do not need to be directly considered because internal risk factors are more important

They should only be referenced for high-risk clients as they are designed for worst-case scenarios

They are primarily intended for regulators and should not influence organizational risk assessments

Raise transaction monitoring thresholds for PEP accounts in automated systems to account for higher transaction values and complex legal vehicles and financial structures

Require approval from the prudential regulator for entering into or continuing the business relationship

Subscribe to commercial databases to assist in the detection of PEPs

Establish processes to understand the PEP's source of wealth and the source of funds, and to refresh that understanding on a regular basis

Keep senior management informed at all times to strategically organize a defense to terminate the law enforcement request

Verify the officer's identification and ask for the law enforcement request to be served when the Chief Executive Officer is available to sign for it

Ask for an extension to review the FI's privacy policy and confidentiality policy before providing any information under the law enforcement request

Designate a person responsible for the internal investigation in preparation of documents for the request

Eliminating backlogs through the ability to process large volumes of data

Minimizing privacy concerns through minimized human intervention

Minimizing human intervention in repetitive tasks, increasing data accuracy

Allowing for automatic one-stop searches at the front end by analysts

Some MSBs provide bureau de change services to retail customers after they complete a due diligence process.

Some MSBs process large, individual cash transactions on behalf of customers.

Some MSBs allow regular and frequent transactions to the same family members based in another country

Some MSBs process small remittance payments on behalf of workers based abroad sending money home.

dictating what predicate offences must be considered in the Fl's risk assessment.

providing guidance on the types of customers and transactions that pose the highest risk.

defining exactly what policies and procedures must be implemented.

determining the maximum fines that can be imposed for AML violations.

To avoid sanctions breach related to payments

To avoid onboarding customers previously exited due to true match

To meet international regulatory requirements and identify risks across jurisdictions

To be in line with the risk appetite statement