CAMS Practice Test

CAMS Practice Test practice questions, page 20 of 26, with answer review and explanations.

Question 96

A bank employee recently opened an account for a new restaurant. Daily cash deposits over a three-month period are close to $9,500. What are two red flags that indicate possible money laundering or terrorist financing? (Choose two.)

  1. The restaurant is located in a different city
  2. The daily cash deposits are so close in amount
  3. It is a new account that has daily cash deposits
  4. The new account demonstrates a steady flow of income

Question 97

A customer has held an account at a bank and has lived locally for over 25 years. Historically he has come into the bank monthly to deposit a $1,500 retirement check from the company where he worked. He is well known at the bank and often brings the staff cookies. Over the past four months, he has come into the bank every Monday, Wednesday, and Thursday to make $3,000 cash deposits into his account. A review of his account shows that an $8,500 check made out to cash clears his account each week. The bank has decided to file a suspicious transaction report (STR). What is the important fact to include in the STR?

  1. The recent change in the timing of deposits and withdrawals in the account
  2. The customer's work history and the amount of his monthly retirement check
  3. The fact that the account holder is well known to the bank staff
  4. The fact that the customer has lived in the area and has banked at this bank for 25 years

Question 98

A financial institution receives a regulatory enforcement action because of deficiencies in its anti-money laundering program. Which action should the board of directors take?

  1. Terminate the compliance officer and staff
  2. Purchase and install a new suspicious activity monitoring system
  3. Hire an attorney with instructions to protest the enforcement action
  4. Instruct the compliance officer to develop a plan to remediate the institution's anti-money laundering program

Question 99

A banker in the credit department wants to assess the risk of all customers, and contacts the compliance officer to request a list of customers with suspicious transaction report filings. What should be done to protect suspicious transaction report information?

  1. Provide the suspicious transaction report information to the credit department
  2. Decline to provide the suspicious transaction report information to the credit department
  3. Seek approval from the board of directors to disclose the suspicious transaction report information
  4. Contact the credit department manager to determine how the suspicious transaction report information can be provided

Question 100

Which two aspects of precious metals pose the highest risk of money laundering? (Choose two.)

  1. Some precious metals can be formed into other objects, making them easier to transport
  2. Precious metals have high intrinsic value in a relatively compact form and are easy to convert into currency
  3. The value of precious metals can be inflated easily, making it easy to increase the amount of money laundered
  4. Precious metals can be readily used in many high-tech commercial applications, making them all the more valuable