CAMS Practice Test

CAMS Practice Test practice questions, page 15 of 26, with answer review and explanations.

Question 71

The compliance officer for a bank is reviewing on-boarding documents for a new business account for a domestic corporation. The officer is unable to verify the identity of the beneficial owners of the company. Only information on the nominee owners was provided, and none of the listed addresses are local. The purpose of the business and future expected activity was disclosed to include cash letters, money orders and international remittance transfers. Which red flag identifies a heightened money laundering risk?

  1. Expected activity was advised to include cash letter and money orders
  2. The nature and purpose of the business include international remittance transfers
  3. The names provided at account opening are identified as the corporation's representative nominees
  4. Account signer's government issued identification lists addresses outside of where the branch account was opened

Question 72

Law enforcement submitted a request to a bank for information regarding one of its customers. How should the bank respond according to Financial Action Task Force Guidance?

  1. Provide all information requested to support the investigation
  2. Ensure that the request will not violate any local privacy regulations or legislation
  3. Ensure the information is necessary to the investigation before responding to the request
  4. Contact the customer informing the person of the investigation to ensure the bank provides correct information

Question 73

How should a financial institution respond to a verbal request from a law enforcement agency to keep an account open to assist in an investigation?

  1. Agree to keep the account open
  2. Request a subpoena to maintain the account
  3. Request a letter on the agency's letterhead
  4. Request a search warrant from the local court

Question 74

A bank operates in multiple countries and offers a variety of products and services. The compliance officer recently joined the bank and wants to better understand the inherent level of anti-money laundering risk across the entire organization. Which two factors should be considered? (Choose two.)

  1. The Transaction Monitoring program
  2. The Customer Due Diligence program
  3. Countries that the bank operates in
  4. Products and services offered by the bank

Question 75

A bank is preparing for its anti-money laundering independent review, which is performed every two years under the direction of the compliance officer. The bank's corporate audit department will conduct the review. The compliance officer will review the final report before it is released to the Board of Directors. What is the issue with this situation?

  1. Independent reviews must be performed annually
  2. The review must be performed by a group outside of the bank
  3. The final report must be presented directly to the board of directors
  4. There is a conflict of interest with the management of the review process