Get 100% Authentic ACAMS CAMS Dumps with Correct Answers [Q190-Q210]

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Get 100% Authentic ACAMS CAMS Dumps with Correct Answers

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Q190. What should an institution in their AML policies and procedures?

A component on when and how employees will be trained

A description of money laundering trends and methodologies

Names of individuals currently on the OFAC list

Copies of the institutions testing and monitoring results

Q191. When should new business products to evaluated for AML concerns?

After they have been implemented so there is empirical data to review

Before they are launched into the market

At the time of the next enterprise risk assessment

On an annual basis

Q192. What is operational risk?

The potential for loss of public confidence in an organization’s integrity

The potential for loss resulting from too much credit or loan exposure to one borrower

The potential for loss due to inadequate processes, people, systems, or external events

The potential for lawsuits, fines, and penalties increasing an organization’s expenses

Q193. Combating the Financing of Terrorism (CFT)]
Which is a key role of FATF-Style Regional Bodies (FSRBs)?

Support the system of mutual evaluation

Setting regional standards for combatting money laundering

Bring additional terrorist financing laws into action in the region

Enforce the specific FATF laws in the region

Q194. What are two requirements of United States financial institutions when conducting business with an international institution as a result of the USA PATRIOT Act? (Choose two.)

Performing enhanced due diligence on shell banks

Performing due diligence on correspondent accounts

Visiting the head office of the international financial institution

Complying with Special Measures issued under the USA PATRIOT Act

Q195. A non-U.S. bank asks its U.S. correspondent whether there is risk of having funds seized in their correspondent account if a customer is involved in a predicate offense.The correspondent bank’s reply should be,

“No, only U.S. accounts for U.S. citizens can be seized and forfeited by the competent authority.”

“No, only correspondent accounts of U.S. banks can be seized and forfeited by government agencies.”

“Yes, if it is suspected that money laundering has occurred solely in the U.S.”

“Yes, also if the customer’s account is used in a country other than the U.S. by suspected money launderers.”

Q196. Combating the Financing of Terrorism (CFT)]
What is a key objective of the Egmont Group?

Validate Financial Action Task Force implementations in countries and territories through a system of evaluations

Provide enforcement recommendations to national law enforcement agencies pursuant to a memorandum of understanding

Exchange international law interpretations among regulators through plenary sessions

Foster better and secure communications across financial intelligence units through the application of technology

Q197. You have Azure IoT Edge devices that collect measurements every 30 seconds.
You plan to send the measurements to an Azure IoT hub.
You need to ensure that every event is processed as quickly as possible.
What should you use?

Apache Kafka

Azure Stream Analytics record functions

Azure Stream Analytics windowing functions

Azure Machine Learning on the IoT Edge devices

Q198. According to the Financial Action Task Force 40 Recommendations, simplified customer due diligence or reduced measures could be acceptable for which of the following types of products or transactions?
1. Life insurance policies where the annual premium is no more than USD/EUR 1,000 or a single premium of no more than USD/EUR 2,500.
2. Insurance policies for pension schemes if there is no surrender clause and the policy cannot be used as collateral.
3. A ptfiisiui i Ll idL pr uviJcfb lelir emei it bei lefils Lu employees.
4. Trusts where the settlor, trustee and beneficiaries are identified and the shares are in bearer form.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

Q199. When performing an investigation, which key steps should be taken to maintain and secure supporting documentation used to perform an investigation of a suspicious activity?

Disseminate the rationale for the investigative approach and the objective basis for the determination.

Perform the alerting transaction with alternative thresholds to ensure they are calibrated correctly.

Ensure that a secure archive has information available to the client.

Maintain a record of the transaction activity that generated the alert

Q200. the Financing of Terrorism (CFT)]
What is a tool governments and multi-national bodies can use to prevent the proliferation of weapons of mass destruction?

Economic Sanctions

Commission Rogatoire

Account Monitoring Order

Mutual Legal Assistance Treaties

Q201. Which example describes the vulnerability of the securities sector for money laundering?

A non-U.S. person seeks to open a brokerage account with a U.S. broker-dealer

A broker-dealer must have a customer identification program in place

Broker-dealers generally have a higher percentage of inexperienced staff

Compensation for broker-dealers is generally based on commissions

Q202. An audit completed the previous week revealed that a private banking customer submitted incomplete documents when establishing an account earlier m the year. The customer received weekly electronic fund transfers from a narcotic-producing jurisdiction. While the relationship manager who opened the account is on leave for 5 weeks, the customer requests that the institution remit a substantial sum to a country that represents a high risk of money laundering. The relationship manager is a friend of the anti-money laundering specialist.
What should the anti-money laundering officer do first?

File a suspicious transaction report with the competent authority

Investigate the transfer of funds

Suspend the transfer until the relationship manager returns

Postpone the follow-up on the audit finding

Q203. An anti-money laundering specialist has been hired by an independently-owned community bank to implement an anti-money laundering compliance program. This bank has recently seen a dramatic increase in the number of international electronic fund transfers from its commercial clients. The first thing the anti-money laundering specialist should do is

file a suspicious transaction report on international customers receiving large electronic fund transfers.

conduct a risk assessment of the bank’s international electronic fund transfer activity.

develop a new account questionnaire to quantify the level of risk for new international accounts.

close all accounts which have had a dramatic increase in international electronic fund transfer activity.

Q204. An analyst reviewing trade finance transactions notices an increase in price of 25% over 12 months for commodities with the same specification and quantity. Which action should the analyst take?

Produce an investigation report that finds evidence to substantiate the analyst’s suspicion and submit a SAR/STR.

Produce an investigation report that considers client activity and factors that may have legitimately affected transaction cost.

Produce an updated due diligence record for the client so that monitoring can be enhanced.

Produce a SAR/STR that describes apparent trade-based money laundering and submit to the Financial Investigation Unit (FIU).

Trade finance transactions involve the financing of the movement of goods and services across borders. Trade finance products include letters of credit, guarantees, documentary collections, open account, and supply chain finance. Trade finance transactions are exposed to various risks, such as credit risk, operational risk, fraud risk, and money laundering risk. Money laundering risk refers to the possibility that trade finance transactions are used to conceal the origin, ownership, or destination of illicit funds, or to evade taxes, sanctions, or exchange controls. Trade-based money laundering (TBML) is a form of money laundering that involves the manipulation of trade transactions, such as mispricing, misinvoicing, over- or under-shipping, or falsifying documents, to transfer value or obscure the true nature of the funds12.
An analyst reviewing trade finance transactions should be alert to any red flags or indicators of potential TBML, such as significant discrepancies between the value or quantity of the goods and the invoice, payment, or contract; unusual or complex shipment routes or methods; involvement of high-risk jurisdictions, entities, or commodities; or lack of transparency or documentation of the trade transaction12. If the analyst notices an increase in price of 25% over 12 months for commodities with the same specification and quantity, this could be a sign of mispricing, which is a common technique of TBML. Mispricing involves inflating or deflating the price of the goods to transfer value or evade taxes or duties. For example, an exporter may overprice the goods to move funds out of a country with exchange controls, or an importer may underprice the goods to reduce the customs duty payable12.
However, an increase in price of 25% over 12 months for commodities with the same specification and quantity does not necessarily indicate TBML, as there could be other legitimate factors that may have affected the transaction cost, such as market fluctuations, supply and demand, quality, transportation, insurance, or other fees. Therefore, the analyst should not jump to the conclusion that TBML is occurring, but rather conduct a thorough investigation to verify the validity and rationale of the price change. The analyst should produce an investigation report that considers the client activity and factors that may have legitimately affected the transaction cost, such as:
* The nature and purpose of the client’s business and trade activities
* The client’s profile, risk rating, and transaction history
* The source and destination of the funds and the goods
* The market price and trends of the commodities involved
* The contractual terms and conditions of the trade transaction
* The supporting documents, such as invoices, bills of lading, certificates of origin, inspection reports, etc.
* The due diligence and verification procedures performed by the bank or the third parties
* The compliance with the relevant laws, regulations, and standards of the jurisdictions involved The investigation report should document the findings, analysis, and conclusions of the analyst, and provide evidence and references to support the assessment. The investigation report should also include any recommendations or actions to be taken by the bank or the authorities, such as:
* Requesting additional information or clarification from the client or the counterparties
* Conducting enhanced due diligence or monitoring of the client or the transaction
* Escalating the case to the senior management or the compliance department
* Reporting the case to the Financial Investigation Unit (FIU) or the relevant regulator
* Filing a Suspicious Activity Report (SAR) or a Suspicious Transaction Report (STR) if there are reasonable grounds to suspect TBML or other criminal activity Therefore, the best action for the analyst to take is to produce an investigation report that considers the client activity and factors that may have legitimately affected the transaction cost, as this would allow the analyst to determine whether the price increase is justified or indicative of TBML, and to take appropriate measures accordingly.
Trade Finance and Trade-Based Money Laundering
Trade-Based Money Laundering: Red Flag Indicators

Q205. The most effective tool used to detect structured transactions is

Verification of the source of funds.

A comprehensive account-opening procedure.

An employee training program to detect suspicious transactions.

A software program that can link apparently unrelated transactions.

Q206. Bank A is located in Country A. A wire transfer from Bank B located in Country B is processes by Bank A, where the funds are being moved to a customer at Bank C located in Country C. The wire transfer is deemed suspicious by Bank A.
Who should Bank A file a suspicious transaction report on?

The transaction in Country A

Bank B in Country A

The transaction in Country B

Bank C in Country C

Q207. How does the Financial Action Task Force (FAT F) measure the effectiveness of a country’s efforts to combat money laundering and terrorist financing?

Mutual evaluation

FATF Evaluation Committee

Basel Committee

Series of internal audits followed by reporting to FATF

Q208. What are theroles of a government Financial Intelligence Unit (FIU)? (Select Three.)

Investigate and, where appropriate, prosecute all suspicious transaction and suspicious activity reports received from reporting institutions or obliged institutions.

Analyze all suspicious transaction and suspicious activity reports received from reporting institutions or obliged institutions.

Disseminate analysis of suspicious transaction and suspicious activity reports to foreign judicial systems to enhance their anti-money laundering and terrorist financing investigations and prosecutions.

Disseminate the analysis of suspicious transaction and suspicious activity reports to local law enforcement agencies and foreign FIUs to combat money laundering.

Receive reports of suspicious transactions and suspicious activities from reporting institutions or obliged institutions.

Q209. An anti-money laundering expert is hired by a new Internet bank to assess the money laundering threat to the bank. Because it is an o line bank the most important recommendation for the expert to make is that the bank

limit the amount which can be processed per transaction.

ensure that prospective new customers can be properly identified.

set up automated programs to analyze transaction for money laundering activity.

ensure that a firewall is set up to protect the transactions.

Q210. Which of the following are common indicators of possible money laundering within the securities industry?
(Select Two.)

Receiving securities into an existing brokerage account following the death of a spouse

Allowing fixed income securities to mature

Using brokerage accounts like deposit accounts

Engaging in transactions involving nominees or third parties