CAMS7 Practice Test

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

Question 51

The transaction monitoring system of a bank generated an alert for a car wash client. After making large cash deposits, the client orders international wire transfers. Which additional circumstances would make the case more suspicious?

  1. The beneficiary of the wire transfers is a foreign company whose shareholders and director are other companies
  2. The wire transfers are for different amounts but with the same beneficiary
  3. The beneficiary of the wire transfer is a resident of a grey-list country
  4. The beneficiary of the wire transfers is a resident of a foreign country bearing the same family name as the business owner

Question 52

Which of the following are benefits of the latest KYC solutions, including but not limited to digital onboarding, eKYC, digital identity, facial recognition, liveness checks, biometrics, and geolocation? (Choose three.)

  1. Guaranteeing 100% accuracy in regulatory compliance across all jurisdictions
  2. Improving customer satisfaction by offering personalized recommendations
  3. Reducing identity theft effectively
  4. Providing reliable customer authentication to enhance trust
  5. Decreasing the time required for customer authentication

Question 53

The chief compliance officer at a global bank that operates in the US, EU, and other countries is responsible for navigating the US and EU regulations related to anti-money laundering (AML) and sanctions as well as any local regulations in the countries where it operates. What should be the primary compliance concern of the bank?

  1. US anti-money laundering regulations are stricter than the EU AML Directives, making it easier for the global bank to be compliant in the EU
  2. US and EU regulations require the bank to build separate compliance teams, making it necessary to establish completely separate systems for US and EU operations
  3. The EU's sanctions regime is stricter than that of the US Office of Foreign Assets Control (OFAC), so the bank must prioritize compliance with EU regulations over US laws and train the staff in Europe accordingly
  4. Balancing compliance with the US BSA and OFAC sanctions while ensuring adherence to EU AML directives and the GDPR, which complicates cross-border data sharing