CAMS7 Practice Test

CAMS7 Practice Test practice questions, page 10 of 11, with answer review and explanations.

Question 46

In the context of terrorist financing, which of the following are potential indicators of the abuse of non-profit organizations (NPOs)? (Choose two.)

  1. Involvement in community development and humanitarian aid projects
  2. Large and unaccounted cash donations from anonymous sources
  3. Operating in high-risk jurisdictions with limited oversight
  4. Frequent changes in leadership and mission statements
  5. Extensive transparency in financial reporting and governance practices

Question 47

Which action could be taken by an organization to better understand the threats faced from proliferation financing?

  1. Work with the front-line to understand their strategic growth targets specifically aimed at increasing their market share around military technology and dual-use products
  2. Review the organization’s sanction risk assessment to better understand the potential for exposure to Russia and the Democratic People's Republic of Korea
  3. Read and analyze the most recent National Proliferation Financing Risk Assessment produced by the relevant body of the organization’s jurisdiction
  4. Undertake a detailed review of all payment-related transactions to any clients identified as defense contractors, paying special attention to the beneficial owners of those clients

Question 48

Common risks and red flags associated with trade finance clients may include: (Choose four.)

  1. account activity that is not consistent with the purpose of the account
  2. bills of lading matching the description of goods, quantities, and values with transshipment details justified
  3. transaction structures that appear unnecessarily complex
  4. trade documents, such as invoices and letters of credit, that are not clearly worded or are in foreign languages
  5. invoices with prices that are much higher than market price
  6. fluctuations in the pricing of standard goods and services

Question 49

The supply of goods and services can be vulnerable to corruption within a company, particularly the solicitation and receipt of bribes and kickbacks, because: (Choose two.)

  1. certain contractors may receive preferential treatment, allowing them opportunities to inflate margins during the tender process
  2. unsuccessful bidders are informed of decisions and provided detailed justifications for awarding the contracts
  3. procurement and contracting processes involve the management of the tender process, which may lack sufficient oversight
  4. bids are solicited and disseminated to a wide audience through advertising and other channels.

Question 50

A compliance officer is completing a case and has determined that the events do not merit filing a suspicious activity report (SAR). Which of the following should be included in the case notes to justify not filing a SAR? (Choose two.)

  1. Who made the decision not to file the SAR
  2. Why the officer deemed that the case did not merit filing a SAR
  3. How much money was involved in the case
  4. How the money flowed through the institution
  5. When the unusual activity occurred