CAMS7 Practice Test

CAMS7 Practice Test practice questions, page 8 of 11, with answer review and explanations.

Question 36

Which of the services provided by Trust and Company Service Providers (TCSPs) present the greatest financial crime risks? (Choose three.)

  1. Providing clear procedures to ensure compliance with local tax regulations
  2. Using trusts to obscure the identity of beneficial owners
  3. Promoting the use of complex corporate structures
  4. Maintaining accurate and updated beneficial ownership details for all customers registered for their services
  5. Establishing shell companies for holding financial assets

Question 37

The purpose of a risk appetite statement is to:

  1. clearly define the level of risk exposure to financial crime which a financial institution is willing to take.
  2. help investors understand the risk a financial institution is willing to take.
  3. help customers understand which financial institutions may be willing to bank their business.
  4. eliminate high-risk business types from a financial institution.

Question 38

Unusual wire transfer transactions can include: (Choose two.)

  1. wire transfers in different currencies between accounts held at different banks for the same client.
  2. an incoming third-party wire transfer followed by the purchase of real estate in the client's name.
  3. an incoming wire transfer followed by the loan payment to a third party that is a business associate of the client.
  4. multiple wire transfers sent to counterparties associated with the client as per KYC documentation.

Question 39

Perpetual KYC includes: (Choose two.)

  1. triggers identifying static data changes and data based on client's behaviors in real time.
  2. periodic refreshing at one-, three- and five-year cycles.
  3. ability to prioritize better based on client data rather than driven by schedules alone.
  4. classification of clients into categories of risk.

Question 40

A financial institution is exploring automation to assist investigators in reviewing flagged transactions. Currently, investigators spend a significant amount of time gathering data from multiple sources. Which of the following automation features would be most effective in improving investigator efficiency?

  1. Pre-populated templates for SAR filing
  2. Integration of open-source tools to gather real-time intelligence
  3. Automated case prioritization based on risk scoring
  4. AI-powered dashboards summarizing flagged transactions