2019 Free ACAMS EnsurePass CAMS Dumps VCE and PDF Download Part 4

EnsurePass Dumps





Pursuant to the Third European Union Money Laundering Directive, how long after being out of prominent office should a person NOT be considered to be a Politically Exposed Person (PEP)?


A. 1 year
B. 2 years
C. 3 years
D. 4 years


Correct Answer: A





Which method most likely indicates the placement stage of laundering dirty money in a land based casino?


A. Transferring substantial amounts of money from a client’s credit card to a client’s casino’s VIP account
B. Buying casino chips against a bank draft
C. Redeeming smaller denomination casino chips for largest denomination chips
D. Using cash to buy casino winnings from legitimate winners at a premium


Correct Answer: D


A compliance officer at a small local bank reads in the newspaper that a high ranking local public official, who is a long-standing account holder, is being investigated by the competent authorities for accepting bribes. The compliance officer immediately checks the official’s account and new account the official opened at the bank a few weeks ago. The compliance officer’s investigation of these accounts discloses that the official’s long-standing account had no unusual activity and that the recently opened had no activity since it was opened. What should the compliance officer do next?


A. Wait until the new account receives funds and confirm their source
B. Call the competent authorities to assess the need to file a suspicious transaction report
C. Meet with staff who opened the account to understand its nature and purpose
D. Call the office to confirm the need for multiple accounts


Correct Answer: B


What is a key element required to ensure an anti-money laundering compliance program is effectively embedded into an institution’s culture?


A. An internal audit
B. Ongoing training
C. Peer review
D. A record retention policy


Correct Answer: B


In 2004, Consolidated KYC Risk Management was issued by the Basel Committee on Banking Supervision (BCBS). What is a key message in this document?


A. KYC Risk Management required a yearly consolidation effort
B. KYC Risk Management means as established decentralized process for promulgating policies and procedures
C. Policies and procedures should be designed not merely to comply strictly with all relevant laws and regulations
D. Consolidated KYC risk management for a group is critical and trumps jurisdictional rules hat limit information sharing

Correct Answer: D


In order to protect investigative materials from disclosure when conducting an internal Investigation of any employee of a financial institution, legal counsel of that financial should________?


A. Request formal company authorization to conduct the investigation. Such authorization should be granted, if possible, by the board of directors or audit committee
B. Refuse to provide any records or documents to law enforcement because the bank has client privilege with its bank customers
C. Let the bank hire any and all contract investigators to conduct the internal investigation. That way Legal is not a party to the action and may remain independent
D. Not mark files or documents with privileged and Confidential: Attorney-Client Privilege and/or Work-Product. Those marks will only encourage law enforcement or opposing attorneys to seize those files


Correct Answer: A


Which situation is the highest risk for money laundering and terrorist financing activity?


A. A customer purchases casino chips, using small denomination bank notes, but does not engage in game play before redeeming the chips for a casino check
B. A customer purchases casino chips and engages in significant game play before requesting a casino check for the remainder
C. A customer purchases casino chips using a credit card and engages in minimal game play before redeeming the chips for a casino check
D. A customer purchases casino chips using credit from an account at an affiliated casino and engages in significant game play before redeeming the chips for a casino check


Correct Answer: C


The marketing department presents a business plan targeting individuals holding important public positions. What are some steps the financial institution should implement as part of the plan to target such individuals?


A. Investigate the source of funds
B. Determine the purpose of the account
C. Determine if the client appears on the Basel Committee on Banking Supervision’s list of public officials
D. Take all reasonable steps to check the background of the individual based on public information


Correct Answer: ABD






The Board of Directors and the senior management of a financial institution should ensure that which three are established and followed with regard to an effective AML program?


A. There is a strong compliance program
B. International guidance is followed and understood
C. They are kept informed of all major AML issues
D. Regulatory compliance is made part of all relevant job descriptions


Correct Answer: ACD


What is operational risk?


A. The potential for loss of public confidence in an organization’s integrity
B. The potential for loss resulting from too much credit or loan exposure to one borrower
C. The potential for loss due to inadequate processes, people, systems, or external events
D. The potential for lawsuits, fines, and penalties increasing an organization’s expenses


Correct Answer: C


How should a financial institution deter money laundering through new accounts? Choose 3 answers


A. Document the identity of the party opening the account
B. Query owner’s names against FATF database
C. Determine the beneficial owner(s) of the account
D. Seek to determine the source of deposited funds


Correct Answer: ACD


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


Correct Answer: C


Why do government entities around the world believe that a risk-based approach to AML/CFT compliance is a preferable prescriptive measure?


A. It is easier for examiners to make subjective criticisms
B. It is more flexible, effective and proportionate
C. It allows institutions to focus their attention on only high risk customers
D. It allows the creation of hard and fast rules that must be followed


Correct Answer: B


When providing reporting of STRs to the board, which of the following should be provided?


A. A numerical summary of all the STRs
B. A numerical summary of all the STRs and a summary of key STRs, including PEPs, key employees
C. A summary of all key STRs, including PEPs and key employees
D. All the STRs filed with the national FIU


Correct Answer: C


Why do trusts established in certain offshore jurisdictions make good vehicles to launder money?


A. Names of the settlor and beneficiaries are not publicly available
B. Trust are typically set up to minimize taxes
C. Offshore jurisdictions are unfamiliar with trusts
D. Trusts may hold assets of significant size


Correct Answer: D


What are some of the methods for sharing information and cooperating on an international basis? Choose 3 answers


A. Mutual Assistance Legal Treaties
B. International Money Laundering Information Network
C. Regulatory sharing through Supervisory Channels
D. Issuant subpoenas


Correct Answer: ABC


What are three indicators of money laundering associated with using electronic funds transfers? Choose 3 answers


A. Funds transfers to or from a financial secrecy haven without an apparent business reason
B. Regular and frequent transfers from the account of a large company said to be payment for goods bought on credit
C. Funds transfers are received or sent from the same person to or from different accounts
D. Payment or receipts with no apparent link to legitimate contracts, goods or services


Correct Answer: ACD


A quarterly review is conducted on a retail customer’s account at a bank located in a jurisdiction with currency reporting thresholds. A number of large deposits of financial instruments drawn on other institutions in amounts under thresholds were noted. This activity did not fit the account’s historical profile. A suspicious transaction report will most likely be filed if what also occurred?


A. The customer has defaulted on a large loan with the bank
B. The deposited financial instruments were sequentially numbered
C. Four deposits were made during this period that exceeded the thresholds
D. The customer purchased financial instruments exceeding the threshold on three occasions


Correct Answer: B


What kind of person should perform the independent testing of an institution’s anti-money laundering program?


A. A certified specialist in the anti-money laundering field
B. A former anti-money laundering officer from a similar institution
C. A person who reports directly to the Board of Directors or a Board Committee
D. A retired government regulator or federal law enforcement officer


Correct Answer: A


What is suspicious activity or red flag with regard to a customer’s activity? Choose 3 answers


A. Paying the tellers he deals with a regular gratuity
B. Exchanging small denomination bills for large ones
C. Engaging in wire transactions with an offshore account
D. Asking about the bank’s fee schedule for a series of transactions


Correct Answer: ABC

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