CAMS Practice Test

CAMS Practice Test practice questions, page 16 of 26, with answer review and explanations.

Question 76

Which method is used to launder money in casinos?

  1. Purchase chips with cash and play at a table
  2. Purchase chips with cash and redeem for cash
  3. Purchase chips with cash and redeem for a check
  4. Purchase chips with cash and sell to another person for cash

Question 77

Financial Action Task Force (FATF)-style regional bodies are created and obliged to understand the inherent money laundering and terrorist financing risks in the region of the world they serve. What is one of the methods they use to understand these risks?

  1. They require member countries to develop statistical metrics over money laundering and terrorist financing crimes
  2. They require participating financial institutions of their members to file suspicious transaction reports to the regional body
  3. They conduct global research on money laundering and terrorist financing trends and report their findings in their own typologies report
  4. They conduct regional-level research and analysis of the money laundering and terrorist financing methods and trends using standards and templates used for FATF typologies reports

Question 78

A bank's anti-money laundering section receives an anonymous tip that a customer might be engaging in possible money laundering. Which two facts should be considered during the course of an investigation into this matter? (Choose two.)

  1. The customer has had a long-standing account at the bank
  2. The customer is on the exempt list for currency transaction reporting requirements
  3. The customer is issuing a number of wires to several relatively high-risk jurisdictions
  4. The customer's account has had a large volume of activity, but the month-end balance is usually low

Question 79

A bank employee reviews wire transactions looking for indications of wire stripping. Which two actions should the employee take to complete appropriate bank procedures? (Choose two.)

  1. Compare the wire transaction as it enters and after it leaves the bank
  2. Check for suspicious phrases usually used to conceal originator or beneficiary identity
  3. Identify large incoming wire transactions received on behalf of a foreign client with no explicit reason
  4. Identify wire transaction activity to or from a financial institution located in a higher risk jurisdiction

Question 80

Who has the ultimate responsibility within a bank for ensuring that the bank has a comprehensive and effective Bank Secrecy Act / anti-money laundering (BSA/ AML) program and oversight framework that is reasonably designed to ensure compliance with applicable regulations?

  1. Senior management
  2. Board of directors
  3. Business line managers
  4. BSA/AML compliance officer