CAMS Practice Test

CAMS Practice Test practice questions, page 21 of 26, with answer review and explanations.

Question 101

Which two methods have terrorist groups used to diversify their revenue stream and to fund their operations? (Choose two.)

  1. Human trafficking
  2. Engaging in civil conflict
  3. Smuggling cultural artifacts
  4. Engaging in wire transfer activity

Question 102

Which two statements are true regarding the European Union Money Laundering Directives? (Choose two.)

  1. They apply to member states of the European Union
  2. They require member states to enact laws and/or regulations to comply with the directives
  3. They set forth non-binding best practices for financial institutions within the member states
  4. They have extraterritorial impact and apply to states that have diplomatic relations with member states

Question 103

A compliance officer was recently reviewing transactional data for an international charity and found transactions that present a higher risk. Which reason is cause for terminating the banking relationship?

  1. The charity has had a high turnover rate of official positions
  2. The charity has several incoming international funds transfers
  3. The flow of funds both in and out are complex and hard to trace
  4. The charity is headquartered in a country on the Office of Foreign Assets Control list

Question 104

Which action does the Financial Action Task Force (FATF) recommend be taken against jurisdictions that have strategic deficiencies?

  1. Conduct due diligence
  2. Apply counter-measures
  3. Add the jurisdiction to the United Nations' list of sanctioned jurisdictions
  4. Create an action plan to address the deficiencies without the support of the FATF

Question 105

A client opens a bank account for a multi-level marketing company. The debits and credits of the account are numerous and very involved. Further, there are a lot of international transactions. Also, funds are being funneled from the company to the client's personal account in another jurisdiction. Which two steps should law enforcement take in investigating this matter? (Choose two.)

  1. Determine who are the signatories on the account
  2. Ask the bank for the history of this multi-level marketing company
  3. Examine the flow of money from the company to the individual in an effort to determine if it is legitimate
  4. Examine possible Suspicious Activity Report information received from the local Financial Intelligence Units