CAMS Practice Test

CAMS Practice Test practice questions, page 4 of 26, with answer review and explanations.

Question 16

What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee's paper on Customer Due Diligence for Banks?

  1. Determining that a local figure is a PEP
  2. Reviewing when a relationship is established
  3. Reviewing relationships at account opening and on a periodic basis
  4. Requiring that the customer discloses that they are a PEP or an associate of a PEP

Question 17

What are two sources for maintaining up-to-date sanctions information? (Choose two.)

  1. U.S. Federal Bureau of Investigation's National Security Letters
  2. U.S. Department of the Treasury Office of Foreign Assets Control
  3. U.S. Department of the Treasury ג€" Section 311 ג€" Special Measures
  4. Financial Action Task Force's list of High Risk and Non-Cooperative Jurisdictions

Question 18

A bank has maintained an account for a European charity for several years. The charity provides clothing to persons in need in various countries with active terrorists' cells. Which action by the charity indicates possible terrorist financing?

  1. The charity frequently withdraws cash from the bank
  2. The charity has branch locations located in various countries
  3. The charity receives cash donations primarily from European countries
  4. The charity maintains a bank account for non-business-related expenses

Question 19

A politically exposed person (PEP) maintains an account at a bank. Last month a money laundering analyst filed a suspicious transaction report about unusual wire deposits originated by unknown individuals in the home country of the official. Recently a negative news search revealed political corruption in the home country of the official. To whom should this situation be escalated?

  1. The board of directors
  2. The line of business executive
  3. The bank's anti-money laundering officer
  4. The Financial Action Task Force's PEP Hotline

Question 20

Which two individuals are ordinarily beneficial owners of a private banking account according to the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)

  1. Those who are authorized signers on the account
  2. Those who have legal title to a controlling share interest in the customer
  3. Those who generally have ultimate control through ownership or other means over the funds in the account
  4. Those who are the ultimate source of funds for the account and whose source of wealth should be subject to due diligence