CAMS Practice Test

CAMS Practice Test practice questions, page 10 of 26, with answer review and explanations.

Question 46

In reviewing recent activity, a compliance officer for a money transmitter that several customers are each remitting the same amount of money but much more frequently. How should the institution respond?

  1. File a suspicious transaction report
  2. Instruct the tellers not to process remittances for these customers in the future
  3. Conduct further investigation to determine whether this is truly suspicious activity
  4. Immediately contact the customers and ask them why they are remitting money more often

Question 47

In the summer, an institution identifies anti-money laundering concerns regarding a customer's account activity. The customer, an ice cream parlor, has deposited a lot of checks drawn on banks in foreign countries, sent large number of high dollar international wires to different countries, made cash deposits of a few hundred dollars every few days and written multiple checks for a few hundred dollars to the same dozen payees every two weeks. Which two transaction types warrant investigation? (Choose two.)

  1. Regular cash deposits
  2. The wires to foreign countries
  3. Repeated checks to the same payees
  4. Checks drawn on banks in foreign countries

Question 48

Which three methods are commonly used by an accountant to launder money? (Choose three.)

  1. Representing a client in court
  2. Understating income to take a tax loss
  3. Overstating income to hide excess cash
  4. Acting as a conduit for transferring cash between accounts
  5. Acting as a designee for someone who wishes to hide their identity

Question 49

A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida. The loan will be in the name of a limited liability company (LLC) whose ownership is not disclosed to the bank. The LLC was established by a New York-based attorney. The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly payment. Which aspect indicates the potential for money laundering?

  1. The LLC's ownership is not disclosed to the bank
  2. The collateral, a property in Florida, is not located in Arizona
  3. The repayment in the amount of $9,000 indicates potential structuring
  4. The attorney associated with the account is outside the bank's lending area

Question 50

What is a key risk associated with Correspondent Accounts according to the Basel Customer Due Diligence paper?

  1. It is not used on a daily basis
  2. The service fees are insufficient to cover the cost of managing the account
  3. The respondent bank's customer acceptance and know your customer policies are ineffective
  4. The volume and value of transactions passing through the account may not be in line with the original correspondent agreement