CAMS7 Practice Test

CAMS7 Practice Test practice questions, page 3 of 11, with answer review and explanations.

Question 11

Which line of defense would be tasked with interpreting new AML regulations and revising training for client-facing relationship managers?

  1. The first line
  2. The second line
  3. Senior management
  4. The third line

Question 12

Which of the following statements describe the strengths associated with public-private partnerships (PPPs)? (Choose two.)

  1. Public organizations can better understand what the private sector experiences and inform policy and the enactment of laws
  2. Data-protection privacy policies provide an opportunity to develop information sharing protocols to prevent unauthorized access to information
  3. Data-protection privacy policies prohibit the evolution of PPPs due to restrictions based on legacy government legislation
  4. Small business owners can choose third-party providers or financial institutions to keep their private data safe which can easily be shared within a PPP

Question 13

Which of the following AML/CFT arrangements should a bank have in place at minimum before opening for business? (Choose three.)

  1. Independent compliance testing
  2. Qualified and knowledgeable staff
  3. Third-party screening software
  4. An automated monitoring system
  5. Written policy and procedures

Question 14

When selecting an anti-financial crime (AFC) tool for an organization, the most important factor to consider is whether the tool:

  1. integrates seamlessly with existing systems and processes.
  2. meets budget and cost requirements.
  3. automates all regulatory reporting requirements.
  4. replaces manual compliance training for employees.

Question 15

A sound AML compliance program requires a comprehensive governance framework that addresses key elements to ensure the integrity of the financial system. Which element forms the starting point of an effective AML compliance program?

  1. Ongoing monitoring
  2. Risk assessment
  3. Policies and procedures
  4. Suspicious activity reporting
  5. Customer due diligence (CDD)