CAMS Practice Test

CAMS Practice Test practice questions, page 18 of 26, with answer review and explanations.

Question 86

Findings from a regulatory examination report states that the job descriptions of personnel outside of the compliance department do not include references to anti- money laundering responsibilities. Which action should the firm take?

  1. Update all job descriptions to include anti-money laundering responsibilities
  2. Respond that only compliance personnel have anti-money laundering responsibilities
  3. Send an email to all staff stating that personnel must observe the anti-money laundering policy
  4. Reply that a description of anti-money laundering responsibilities is included in the annual training

Question 87

What must be materially true regarding transactions for United States (U.S.) sanctions laws to have jurisdiction?

  1. Transactions are traced to illegal proceeds
  2. Transactions are processed by a U.S. person
  3. Transactions are stripped of beneficial owner information
  4. Transactions are identified as proceeds of foreign corruption

Question 88

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

  1. By issuing documentation to the private sector
  2. By issuing two formal documents three times per year
  3. By issuing informal communication to FATF members
  4. By issuing four formal documents to the deficient jurisdictions

Question 89

A recent anti-money laundering audit revealed several regulatory reporting violations and lapses with the organization's anti-money laundering policy. As a result, the compliance officer has created a follow-up matrix to document progress in correcting the identified deficiencies. To whom should the compliance officer provide regular updates of corrective action to help ensure the appropriate oversight?

  1. Audit management
  2. Human Resources
  3. Business line managers
  4. Designated board committee

Question 90

A corporate services provider in a European Union (EU) country has a prospect from an African country who deals in oil and gas. The prospect intends to develop an oil terminal in his home country with a $75 million dollar loan secured by a third party, which is a trust formed in a Caribbean island with a holding company based in a European secrecy haven. A young lady is presented as an ultimate beneficial owner who has gained her wealth through a fitness studio in her home country. What are two red flags that could indicate money laundering or financing terrorism? (Choose two.)

  1. A loan worth $75 million with a third-party guarantor
  2. The guarantor company's ownership structure is overly complex
  3. The prospect wishes to have a corporate structure with a holding company in EU country
  4. The ultimate beneficial owner is young lady who has gained her wealth through a small business