CAMS7 Practice Test

CAMS7 Practice Test practice questions, page 5 of 11, with answer review and explanations.

Question 21

The primary objectives of the United Nations in developing sanctions regimes include: (Choose three.)

  1. to force developing nations to adopt liberal or substantive democracies.
  2. to support governments and regimes in the peaceful resolution of conflict.
  3. to punish governments for having weak financial crime controls.
  4. to deter non-democratic and non-constitutional changes within countries.
  5. to support the protection of human rights.

Question 22

A client advisor at a bank contacts a member of the compliance team for guidance on how to proceed with a client who wants to transfer US$250,000 from the sale of cryptoassets into their savings account at the bank. What guidance should the compliance team provide?

  1. Advise further clarification is necessary, including which coins or tokens were sold and whether the crypto exchange conducts due diligence on its clients
  2. Advise that the transaction should be stopped because cryptoassets in general are not regulated and by definition pose an unacceptable AML risk for the bank
  3. Confirm to the advisor that the customer can proceed with the transaction if the client's KYC is up to date and a search on a public blockchain explorer does not provide any adverse media hits
  4. Confirm to the advisor that the customer can proceed with the transaction because clients are already correctly onboarded KYC is complete and the source of funds is transparent

Question 23

At a high level, the risk assessment process involves identifying and rating the inherent risks associated with customers, products, countries, and delivery channels, and then:

  1. comparing these risks with industry benchmarks to determine the residual risk.
  2. implementing new controls to eliminate all risks.
  3. rating the effectiveness of the related controls in order to calculate the residual risk.
  4. documenting the historical risk incidents for future reference.

Question 24

Which of the following is a broader risk specific to casinos and gambling?

  1. Low thresholds for transactions
  2. Frequent use of cash
  3. Cross-border transactions
  4. Weak KYC policies and procedures

Question 25

Which of the following processes or tools contribute to AML compliance despite being seemingly unrelated? (Choose two.)

  1. Customer loyalty program tracking
  2. Product usage analysis
  3. Customer satisfaction surveys
  4. Customer support ticket tracking
  5. Credit risk assessment