CAMS Practice Test

CAMS Practice Test practice questions, page 8 of 26, with answer review and explanations.

Question 36

A non-U.S. bank wants to open an account at Bank A, which is a U.S.-based bank. Which information must Bank A obtain under the USA PATRIOT Act?

  1. A complete client list from the non-U.S. bank
  2. The identity of owners and percentage of ownership of the non-U.S. bank
  3. The structure and identity of the management team at the non-U.S. bank
  4. The details of the non-U.S. bank's anti-money laundering compliance training program

Question 37

Which insurance product is particularly vulnerable to money laundering?

  1. Annuity
  2. Casualty
  3. Collateral
  4. Regulated pension

Question 38

What is an essential element of Know Your Customer (KYC) standards according to the Basel Committee's Customer Due Diligence for Banks paper?

  1. Annual staff training
  2. A customer acceptance policy
  3. The same KYC requirements must be applied in all cases
  4. All completed KYC documents must be reviewed by a senior manager not involved in the account opening process

Question 39

A foreign bank operating under an offshore license wants to open a correspondent account with a United States (U.S.) bank. The foreign bank plans to provide payable through account services to some of its customers. What must the foreign bank provide to the U.S. bank under the USA PATRIOT Act?

  1. A list of politically exposed persons who are owners of the correspondent bank
  2. A list of account holders at the financial institution who will use the payable through account
  3. The person in the United States who can receive service of legal process for the correspondent bank
  4. A list of anti-money laundering training records for the financial institution employees monitoring payable through account transactions

Question 40

An institution has made the decision to exit a client relationship due to anti-money laundering concerns. Prior to starting the close out process, the institution receives a written request from a law enforcement agency to keep the account open. The client is the subject of an ongoing investigation and law enforcement wants the institution to continue to monitor the account and report any suspicious activity. What is a primary consideration the institution should keep in mind when deciding whether to agree to this request?

  1. The anticipated cost of complying with the law enforcement request
  2. The number of suspicious transaction reports previously filed on the client
  3. The fact that the institution has a solid record in complying with law enforcement requests
  4. Whether the institution can continue to meet its regulatory obligations with the accounts open