[Apr-2025] The Best CAMS Certification Study Guide for the CAMS Exam [Q386-Q405]

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[Apr-2025] The Best CAMS Certification Study Guide for the CAMS Exam

CAMS certification guide Q&A from Training Expert Real4Prep

The CAMS certification is designed to equip professionals with the necessary knowledge and skills to detect and prevent money laundering activities. CAMS exam covers various topics, including AML regulations, risk assessment, customer due diligence, suspicious activity reporting, and sanctions compliance. Certified Anti-Money Laundering Specialists certification is recognized by regulatory bodies, including the Financial Crimes Enforcement Network (FinCEN), and is highly valued by employers in the financial services industry.

NEW QUESTION 386
A money remittance business will most likely attract money launderers because it
1.deals primarily in cash transactions.
2.engages in international transactions.
3. conducts transactions for walk-in customers.
4.does not have to comply with transaction reporting.

1, 2, and 3 only

1, 2, and 4 only

1, 3, and 4 only

2, 3, and 4 only

NEW QUESTION 387
Under requirements for correspondent accounts in the USA PATRIOT Act, the word “certification” refers to a written representation by a

federal receiver” certifying that he is not the beneficial owner of the correspondent account.

respondent bank, certifying that they do not do business with politically exposed persons.

correspondent bank, certifying that they do not open correspondent accounts for alternative remittance companies.

respondent bank, certifying that they do not do business with shell banks.

it describes the word “certification” as a written representation by a respondent bank, certifying that they do not do business with shell banks. This is one of the requirements for correspondent accounts in the USA PATRIOT Act, which is a law enacted in 2001 to enhance the anti-money laundering and counter-terrorist financing (AML/CTF) measures in the United States. The USA PATRIOT Act requires that correspondent banks, which are banks that provide services to other banks, such as clearing, settlement, or cash management, to obtain a certification from their respondent banks, which are banks that receive services from correspondent banks, to ensure that they are not involved in money laundering or terrorist financing activities.
One of the elements of the certification is that the respondent bank does not do business with shell banks, which are banks that have no physical presence or meaningful supervision in any jurisdiction, and are often used by money launderers and other criminals to hide their identity and funds.
The other options are not necessarily the word “certification” as a written representation by a respondent bank under the USA PATRIOT Act, although they may have some relevance or importance depending on the circumstances and the nature of the correspondent relationship. Option A describes a possible certification by a federal receiver, which is a person appointed by a court to take custody and control of the assets of a failed bank, but this is not related to the correspondent accounts requirements in the USA PATRIOT Act. Option B describes a possible certification by a respondent bank, certifying that they do not do business with politically exposed persons (PEPs), which are individuals who hold or have held prominent public positions or their close associates or family members, and who may pose a higher risk of money laundering or corruption, but this is not a mandatory element of the certification under the USA PATRIOT Act, although it may be a good practice or a risk-based measure. Option C describes a possible certification by a correspondent bank, certifying that they do not open correspondent accounts for alternative remittance companies, which are businesses that provide money transfer or payment services outside the formal banking system, and which may pose a higher risk of money laundering or terrorist financing, but this is not a requirement for the respondent bank under the USA PATRIOT Act, although it may be a regulatory obligation or a risk-based measure for the correspondent bank.
Referenzen:
* ACAMS CAMS Certification Video Training Course – 6th Edition1
* Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)2
* ACAMS CAMS Study Guide – 6th Edition, Chapter 7, pages 156-157
https://www.acams.org/wp-content/uploads/2019/09/ACAMS-CAMS-Study-Guide-6th-Edition-Chapter-7.pdf

NEW QUESTION 388
Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

A local wealthy individual wants to become a customer of a local retail bank.

A beneficial owner of an exchange house wants to open an account with the bank.

A wealthy individual from a high-risk country wants to open an account with a private bank.

A new customer asks to set up an exchange house using the bank as the correspondent.

NEW QUESTION 389
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?

Commodities traders

Money services businesses

Hawala operators

Real estate agents

NEW QUESTION 390
A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee.
What is the correct next course of action?

Request that the new product approval committee include the compliance officer.

Go to the board of directors and try to shut the new service down immediately because the committee did not communicate with the compliance officer.

Get as much information as possible from the source so that potential risks can be researched and a report prepared and presented to the head of marketing.

Start initial research into potential risks but wait until notified that the service has been approved by the committee before initiating extensive research.

NEW QUESTION 391
Which scenario should be escalated as potentially suspicious activity?

A retail chain deposits cash into several operating accounts and consolidates the funds into one account.

A domestic business account receives a wire transfer from an international business with no history of such activity or business needs.

A convenience store makes daily deposits or withdrawals primarily in cash.

A corporate account deposits large checks and wire transfers on a frequent basis from existing customers.

NEW QUESTION 392
Which should a financial institution implement in order to identify and investigate money laundering activity from their clients? (Select Two.)

Adverse news screening

Integrity policy

Whistleblower hotline

Code of conduct

Transaction monitoring

According to the ACAMS CAMS Study Guide, 6th Edition, Chapter 3, Section 3.2, the financial institution should implement the following measures in order to identify and investigate money laundering activity from their clients:
Adverse news screening: This is a process of checking the clients’ names and related parties against various sources of negative or adverse information, such as media reports, sanctions lists, watch lists, law enforcement databases, etc. Adverse news screening can help the financial institution to detect any potential red flags or indicators of money laundering or other criminal activities involving their clients, and to take appropriate actions, such as conducting enhanced due diligence, filing suspicious activity reports, or terminating the relationship.
Transaction monitoring: This is a process of reviewing and analyzing the clients’ transactions and activities, such as deposits, withdrawals, transfers, payments, etc., to identify any unusual or suspicious patterns or behaviors that deviate from their normal or expected profile. Transaction monitoring can help the financial institution to detect any possible signs of money laundering or other financial crimes, such as structuring, layering, integration, fraud, tax evasion, etc., and to investigate and report them accordingly.
The other options are not measures that the financial institution should implement in order to identify and investigate money laundering activity from their clients, although they may be part of the overall AML program or compliance culture:
Integrity policy: This is a document that outlines the ethical principles and values that guide the conduct and behavior of the financial institution and its employees. An integrity policy can help the financial institution to promote a culture of honesty, transparency, and accountability, and to prevent or deter any misconduct or corruption. However, an integrity policy alone is not sufficient or specific enough to identify and investigate money laundering activity from their clients.
Whistleblower hotline: This is a mechanism that allows the employees or other stakeholders of the financial institution to report any suspected or observed violations of the AML policies, procedures, or regulations, or any other wrongdoing or malpractice, without fear of retaliation or reprisal. A whistleblower hotline can help the financial institution to encourage and facilitate the reporting of any potential or actual money laundering activity from their clients or within the organization, and to protect the rights and interests of the whistleblowers. However, a whistleblower hotline is not a measure that the financial institution implements to identify and investigate money laundering activity from their clients, but rather a tool that supports the AML program and compliance function.
Code of conduct: This is a document that defines the standards and expectations of the financial institution and its employees regarding their professional and ethical behavior, responsibilities, and obligations. A code of conduct can help the financial institution to establish and maintain a culture of compliance and integrity, and to prevent or address any conflicts of interest, misconduct, or abuse of power. However, a code of conduct is not a measure that the financial institution implements to identify and investigate money laundering activity from their clients, but rather a framework that governs the AML program and compliance function.
Referenzen:
ACAMS CAMS Study Guide, 6th Edition, Chapter 3, Section 3.2
ACAMS CAMS Certification Video Training Course – Exam-Labs
Exam CAMS: Certified Anti-Money Laundering Specialist (the 6th edition)

NEW QUESTION 393
What is true regarding disclosure to a law enforcement agency by a financial institution of the supporting documentation for a suspicious transaction report?

Documentation must be provided as quickly as possible using email

The financial institution may notify the account holder of the request

Confirm that the request originated from a representative of the law enforcement agency

A copy of all the documentation released must also be provided to the account holder’s attorney

NEW QUESTION 394
What does the Basel Committee’s Customer Due Diligence for Banks paper suggest that a bank needs to have in place when establishing an account for a corporate business entity?

An understanding of the structure of the company

A policy requiring all identified beneficial owners to undergo a national police check

A process to ensure that the approval of senior management is obtained prior to opening the account

A fee structure that reflects the banks’ costs in monitoring the risks associated with entity’s business activities

NEW QUESTION 395
Which two methods have terrorist groups used to diversify their revenue stream and to fund their operations?
(Choose two.)

Human trafficking

Engaging in civil conflict

Smuggling cultural artifacts

Engaging in wire transfer activity

NEW QUESTION 396
Which of the following is considered a shell bank as defined by the USA PATRIOT Act?

A bank incorporated in an offshore jurisdiction without a physical presence or employees.

An Internet bank operating in the U.S. providing services worldwide.

A local bank with offices in a non-cooperative jurisdiction which is subject to minimal regulatory supervision.

A bank run by a foreign holding company with offices and staff in an offshore jurisdic-tion.

NEW QUESTION 397
How does the Financial Action Task Force (FATF) communicate its findings regarding jurisdictions with strategic anti-money laundering / Counter Financing of Terrorism deficiencies?

By issuing documentation to the private sector

By issuing two formal documents three times per year

By issuing informal communication to FATF members

By issuing four formal documents to the deficient jurisdictions

NEW QUESTION 398
Your company has factories in 10 countries. Each factory contains several thousand IoT devices.
The devices present status and trending data on a dashboard.
You need to ingest the data from the IoT devices into a data warehouse.
Which two Microsoft Azure technologies should you use? Each correct answer presents part of the solution.
HINWEIS: Jede richtige Auswahl ist einen Punkt wert.

Azure Stream Analytics

Azure Data Factory

an Azure HDInsight cluster

Azure Batch

Azure Data Lake

NEW QUESTION 399
Which are characteristics of Mutual Legal Assistance Treaties (MLATs)? (Select Three.)

MLATs are neither public nor binding under international law.

MLATs cannot be used for obtaining banking records from treaty partners.

MLATs do not provide a legal basis for transmitting evidence.

MLATs only involve two countries.

MLATs cooperatively combat crime between countries.

MLATs are useful for gathering evidence and intelligence in a foreign country.

NEW QUESTION 400
One key aspect of promoting an enterprise-wide compliance culture within a financial institution (FI) is that the:

first line of defense should establish its own policies independently.

revenue generating business sectors should have precedence over compliance.

relevant information should be shared throughout the organization.

cost of compliance should increase proportionately to revenues.

NEW QUESTION 401
The local manager of a remote mortgage origination department of a financial institution has just discovered that sanctions screening of new customers is not being performed.
Which action should the local manager take in this situation?

Start screening new customers

Immediately inform the regulators

Immediately inform senior management

Do nothing because the department only handles a very small number of mortgages

This action is the most appropriate because it demonstrates the local manager’s responsibility and accountability for the sanctions compliance program. Sanctions screening is an important part of the Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, as it helps to identify and prevent transactions with sanctioned individuals or entities, which could expose the financial institution to legal, regulatory, and reputational risks. Failing to perform sanctions screening could result in violations of sanctions laws and regulations, which could lead to fines, penalties, sanctions, or even criminal prosecution.
Therefore, the local manager should immediately inform senior management of the issue, so that they can take corrective actions, such as implementing screening procedures, conducting a risk assessment, reviewing existing customers, reporting any potential violations, and providing training and guidance to the staff.
The other actions are not appropriate because they either do not address the root cause of the problem, or they could worsen the situation. Starting screening new customers without informing senior management could create a false sense of compliance, and it could also miss the existing customers who may be sanctioned.
Immediately informing the regulators without informing senior management could undermine the trust and communication within the organization, and it could also trigger an investigation or enforcement action before the issue is resolved internally. Doing nothing because the department only handles a very small number of mortgages could be a sign of negligence or indifference, and it could also expose the financial institution to significant risks, as even one transaction with a sanctioned party could have serious consequences.
Referenzen:
* CAMS Certification Package – 6th Edition | ACAMS, Chapter 4: Developing and Implementing an AML Training Program, pp. 97-98
* CAMS Certifications: How to Get CAMS Certified | ACAMS, CAMS Study Guide, pp. 76-77
* What is Sanctions Screening and How Does It Work? | Jumio, Introduction and Benefits of Sanctions Screening
* Sanctions Screening: Challenges and Control Considerations, Background and Regulatory Expectations for Sanctions Screening
* Sanction Screening: A Complete Guide | KYC AML Guide, What is Sanction Screening and Why is it Important?

NEW QUESTION 402
One key aspect of the Office of Foreign Assets Control’s extraterritorial reach includes the blocking of certain non-United States initiated transactions for or through the United States (U.S.) for benefit of a restricted person or entity.
Under which three circumstances are U.S. banks required to block transactions? (Choose three.)

The transactions are to, or go through, a blocked entity

Those that are by, or on behalf of, a blocked individual or entity

Those that are by or on behalf of a blocked individual and a licensed entity

Those that are in connection with a transaction in which a blocked individual or entity has an interest

Those that are in connection with a transaction in which a blocked individual or entity has no interest

NEW QUESTION 403
Which is true about Financial Action Task Force (FATF)-Style Regional Bodies (FSRBs)?

FSRBs set standards for their member countries that supplement FATF’s standards.

Tools used by FRSBs include training measures and mutual evaluations of its members.

AFATF-member country cannot also be a member of an FSRB.

To be a member of an FSRB, a country must have enacted AML and Anti-Terrorist Financing laws.

NEW QUESTION 404
An auction house dealing in fine art and antiques sells a well-known painting at a price of $12 million to an agent bidding for a group of local investors. The same painting sold ten years prior at auction for $5 million. The auction house receives payment for the painting via wire transfer from an account maintained in an offshore jurisdiction by the investor group. No beneficial ownership information is available for the account.
What are the two money laundering red flags? (Choose two.)

The payment is received via wire transfer.

An agent bids on the painting for a group of investors.

The painting has more than doubled its value in ten years.

Payment is received from an account in an offshore jurisdiction.

Lack of beneficial ownership details for the originating account.

NEW QUESTION 405
In relationship to life insurance business, the third European Directive states that Member States may allow the identity verification of the beneficiary under the policy after the business relationship has been established, but before which events?

At or before a premium payment has been accepted for the policy purchased

At or before the policy is issued to the beneficiary by the insurance company

At or before the time of payout or before the beneficiary intends to exercise rights vested under the policy

At or before 30 days of the relationship being established under the policy

The CAMS exam is recognized as the gold standard in AML certification, and passing the exam is a significant achievement in the AML field. Certified Anti-Money Laundering Specialists certification is highly valued by employers, and many organizations require their employees to be CAMS certified. The CAMS certification is also recognized by regulatory bodies and law enforcement agencies worldwide, which makes it a valuable asset for professionals working in the AML field.

The Best ACAMS CAMS Study Guides and Dumps of 2025: https://www.real4prep.com/CAMS-exam.html