CAMS7 Practice Test

CAMS7 Practice Test practice questions, page 6 of 11, with answer review and explanations.

Question 26

Which techniques are most commonly used in a rules-based approach to transaction monitoring for detecting suspicious activities? (Choose two.)

  1. Using predefined rules to flag specific transaction patterns
  2. Randomly flagging transactions for further investigation
  3. Statistical tuning of monitoring scenarios to improve accuracy
  4. Using advanced machine learning models to detect outliers
  5. Setting transaction thresholds for automated alerts

Question 27

Which of the following presents the highest money laundering risk from a money services business (MSB)?

  1. Some MSBs provide bureau de change services to retail customers after they complete a due diligence process.
  2. Some MSBs process large, individual cash transactions on behalf of customers.
  3. Some MSBs allow regular and frequent transactions to the same family members based in another country.
  4. Some MSBs process small remittance payments on behalf of workers based abroad sending money home.

Question 28

When considering purchasing AFC tools from a vendor to implement into the customer lifecycle, which of the following measures should be taken during the process? (Choose two.)

  1. Ensuring the tools are compatible and integration with current systems is possible
  2. Assessing whether internal staff members can provide training on the tools
  3. Assessing the cost of implementation and cost of maintaining the tools
  4. Basing business requirements on the features offered by the vendor's tools

Question 29

Beyond the physical and mental harm caused to individuals, which of the following problems can be linked to significant costs from unregulated online gambling and gaming?

  1. Economic and societal
  2. Political and regulatory
  3. Governance and compliance
  4. Sectoral and jurisdictional

Question 30

During a routine periodic KYC refresh of a policyholder and client of an insurance company, updated business registry documentation has highlighted that the policyholder's business has changed addresses five times during the last year and that the ultimate beneficial owner (UBO) changed two weeks ago. What actions should be taken immediately?

  1. Investigate the changes of address and change of UBO and in the meantime decline payment and withdrawal instructions from the policy until completion of the investigation and next steps are agreed upon
  2. Request the relationship manager set up a meeting with the policyholder to update their address and submit details of the new UBO in the name of good customer service
  3. Investigate the changes of address and change of UBO and in the meantime freeze the client's policy
  4. File a suspicious transaction report because the insurance company was not made aware of the business' change of UBO