CAMS7 Practice Test

CAMS7 Practice Test practice questions, page 4 of 11, with answer review and explanations.

Question 16

Which statement best describes a key money laundering risk associated with virtual asset service providers (VASPs), cryptoassets, and related products?

  1. Cryptoassets can be transferred across borders quickly, but the volatility of their value still makes them less attractive for money laundering compared to traditional assets
  2. Mandatory reporting requirements have been implemented for certain types of crypto transactions, but gaps in regulation and enforcement still leave room for money laundering activities.
  3. The transparency of blockchain technology helps law enforcement trace transactions, but it can also provide criminals with ways to obscure their financial activities through complex layering techniques.
  4. The pseudonymous nature of transactions allows criminals to hide their identities while transferring large sums of money globally, making it difficult to trace the ultimate beneficial owner.

Question 17

Which role within private banking has the best placement to identify and report money laundering risk?

  1. Investment advisor
  2. Relationship manager
  3. Operations manager
  4. Compliance officer

Question 18

When deciding on the fuzzy matching threshold for sanctions screening, consideration should be given to:

  1. the operational burden of dealing with potential matches.
  2. the value of fines for non-compliance.
  3. the experience of the team dealing with potential matches.
  4. whether the data to be screened is reliable and verified.

Question 19

Which of the following is a primary objective of public sector groups in the fight against money laundering?

  1. Advising private financial institutions on how to enhance their profitability through AML efforts
  2. Establishing and enforcing legal frameworks to detect, prevent, and punish money laundering and related financial crimes
  3. Providing funding to private and non-governmental organizations (NGOs) for the development of advanced compliance technologies
  4. Acting as intermediaries between private sector firms and non-governmental organizations (NGOs) to streamline AML compliance programs

Question 20

Which external data source is most reliable for verifying beneficial ownership during onboarding?

  1. Adverse media databases
  2. Publicly available information on non-government data repositories
  3. Credit reference agencies
  4. Beneficial ownership registers available in country of incorporation of entity