CAMS Practice Test

CAMS Practice Test practice questions, page 22 of 26, with answer review and explanations.

Question 106

Which method is used to launder money via wire remittances sent through a bureau de change or money services business?

  1. A customer in country A makes a weekly small wire transfer to the bank account of an individual in country B.
  2. A customer in country A makes frequent wire transfers to a single customer in country B that are slightly under the legal reporting threshold.
  3. A large number of wire transfers are sent from a large number of senders in country A to a large number of recipients in country B during the period of December 1 to December 15.
  4. A customer in country A receives four small wire transfers from four different individuals located in country B on December 21. The aggregate of the wire transfers falls below the legal reporting threshold.

Question 107

Historically, a tour guide has made monthly cash deposits averaging $10,000. Over the past three months, the monthly deposits have averaged $100,000. When the financial institution questions the increased deposits, the tour guide explains that there have been numerous conventions in town so business has increased substantially. Which further action(s) should the financial institution take?

  1. Immediately terminate the relationship
  2. Schedule a periodic review of activity
  3. Perform further investigation, if appropriate report the activity to the authorities and consider terminating the relationship
  4. Perform further investigation, if appropriate report the activity to the authorities and place a limit on future transactions

Question 108

One key aspect of the Office of Foreign Assets Control's extraterritorial reach includes the blocking of certain non-United States initiated transactions for or through the United States (U.S.) for benefit of a restricted person or entity. Under which three circumstances are U.S. banks required to block transactions? (Choose three.)

  1. The transactions are to, or go through, a blocked entity
  2. Those that are by, or on behalf of, a blocked individual or entity
  3. Those that are by or on behalf of a blocked individual and a licensed entity
  4. Those that are in connection with a transaction in which a blocked individual or entity has an interest
  5. Those that are in connection with a transaction in which a blocked individual or entity has no interest

Question 109

To ensure compliance with economic sanctions established by governmental authorities in the jurisdictions where it operates, a financial institution requires that all new and existing customers be screened at onboarding and quarterly thereafter. Is this step sufficient to ensure compliance?

  1. No, screening should occur promptly after list updates
  2. Yes, this is recommended by the international guidance
  3. No, it is necessary to screen and perform enhanced due diligence on new relationships
  4. Yes, screening all existing customer relationships ensures the institution is not dealing with a sanctioned individual or entity

Question 110

What is the currency threshold under the European Union Fourth Anti-Money Laundering Directive?

  1. 3,000 Euros
  2. 5,000 Euros
  3. 10,000 Euros
  4. 15,000 Euros