CAMS Practice Test

CAMS Practice Test practice questions, page 6 of 26, with answer review and explanations.

Question 26

A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer's accounts, you notice that credit card receipts have increased with no explanation. The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction of a patio dining area. Which red flag should trigger additional investigation?

  1. Privately-owned ATM
  2. Lower cash deposits
  3. Increased credit card receipts
  4. Construction of the new patio dining area

Question 27

An organization's automated surveillance system identifies large fluctuations in customer activity. As a result of an audit, the compliance officer is informed that the system is not generating alerts when activity is consistently abnormal over a long period of time. Currently the organization is evaluating new alert scenarios in an attempt to address this problem. Which type of scenario is helpful in mitigating this weakness?

  1. Peer
  2. Income
  3. Mapping
  4. Below-the-line

Question 28

Upon a routine account review a money laundering investigator identified a number of large round dollar wire transfer deposits into a business account owned by a local auto repair shop. The wire transfers all originated from a country that is a known financial secrecy haven with poor anti-money laundering controls. The investigator concludes there appears to be no legitimate business purpose for the wire transfers and files a suspicious transaction report. The owner of the auto repair shop is popular in the community and is a well-known philanthropist. To whom should the investigator escalate these concerns?

  1. Audit committee
  2. Chairman of the Board
  3. The owner of the auto repair shop
  4. The bank anti-money laundering officer

Question 29

A compliance officer learns from an Information Technology (IT) source of a potential new financial service being discussed by the new product approval committee. What is the correct next course of action?

  1. Request that the new product approval committee include the compliance officer.
  2. Go to the board of directors and try to shut the new service down immediately because the committee did not communicate with the compliance officer.
  3. Get as much information as possible from the source so that potential risks can be researched and a report prepared and presented to the head of marketing.
  4. Start initial research into potential risks but wait until notified that the service has been approved by the committee before initiating extensive research.

Question 30

What is the goal of the Egmont Group in providing a forum for Financial Intelligence Units (FIUs) around the world?

  1. To improve international laws to combat money laundering and the financing of terrorism and foster the implementation of domestic programs.
  2. To provide a forum for FIUs to improve cooperation in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
  3. To improve communication with law enforcement in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.
  4. To improve cooperation with state and federal governments in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field.