CAMS Practice Test

CAMS Practice Test practice questions, page 11 of 26, with answer review and explanations.

Question 51

A law enforcement agency is reviewing a suspicious transaction report (STR) filed by a financial institution for suspicious activity on a client's account. Subsequently, the agency requests further information. Which supporting documentation might the law enforcement agency request from the institution to facilitate its investigation?

  1. Previously filed STRs on the same customer
  2. Account opening documents and account statements
  3. Copies of promotional materials sent to the customer
  4. A copy of the institution's STR policy and procedures

Question 52

A new compliance officer is reviewing the bank's anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, re-named the internal records group, and streamlined cash handling procedures. Which factor causes the compliance officer to update the bank's risk assessment?

  1. The bank acquired another institution
  2. The internal records group has been re-named
  3. The cash handling procedures were streamlined
  4. The risk assessment was completed six months ago

Question 53

The Wolfsberg Anti-Money Laundering Principles for Private Banking require new clients to be approved by whom?

  1. The board of directors
  2. Only the private banker
  3. The private banker's supervisor
  4. At least one person other than the private banker

Question 54

Which two factors should increase the risk of a correspondent bank customer and require additional due diligence according to the Wolfsberg Anti-Money Laundering Principles for Correspondent Banking? (Choose two.)

  1. The customer is located in a Financial Action Task Force member country and provides services primarily to a local individual customer.
  2. The customer is located in a Financial Action Task Force member country and the bank's head of information security is a politically exposed person.
  3. The customer is located in a Financial Action Task Force member country and provides services to other correspondent banks in neighboring countries.
  4. The customer is located in a non-Financial Action Task Force member country and services mostly commercial customers who engage in international trade.

Question 55

In which two ways does a government Financial Intelligence Unit interact with public and private sectors? (Choose two.)

  1. It governs the methods of investigation used by competent authorities
  2. It mediates disputes between financial institutions and investigative authorities
  3. It receives and analyzes disclosures filed by financial and non-bank institutions
  4. It disseminates information and the results of its analysis to competent authorities