Certified Anti–Money Laundering
Specialist (Cams) Exam Question And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A Instant Download
Pdf
1. Money laundering is best described as:
A. The movement of funds across borders
B. The process of concealing the origin of illegally obtained money
C. Tax avoidance through legal means
D. Investment of funds in high-risk assets
Rationale: Money laundering involves disguising the illicit origin of funds
to make them appear legitimate.
2. The three traditional stages of money laundering are:
A. Collection, transfer, spending
B. Smurfing, layering, integration
C. Placement, layering, integration
D. Deposit, withdrawal, concealment
Rationale: Placement introduces illicit funds, layering obscures the trail,
and integration reintroduces funds as legitimate.
3. Which stage of money laundering involves complex financial transactions to
hide the source of funds?
A. Placement
B. Layering
C. Integration
D. Smurfing
, Rationale: Layering uses multiple transactions to distance funds from their
illegal source.
4. Which activity is most associated with the placement stage?
A. Purchasing luxury goods
B. Wire transfers through shell companies
C. Depositing cash into financial institutions
D. Investing in real estate
Rationale: Placement typically involves introducing illicit cash into the
financial system.
5. The primary goal of integration is to:
A. Break large sums into smaller amounts
B. Transfer funds internationally
C. Make illicit funds appear legitimate
D. Avoid reporting thresholds
Rationale: Integration allows criminals to use laundered money openly.
6. Which organization administers the CAMS certification?
A. FATF
B. Basel Committee
C. IMF
D. ACAMS
Rationale: The Association of Certified Anti-Money Laundering Specialists
(ACAMS) awards the CAMS credential.
7. FATF stands for:
A. Federal Anti–Terrorism Force
B. Financial Action Trade Forum
C. Financial Action Task Force
D. Fiscal Accountability Task Framework
Rationale: FATF is the global standard-setter for AML and CFT.
8. FATF Recommendations primarily address:
A. Tax compliance
, B. Money laundering and terrorist financing
C. Market manipulation
D. Consumer protection
Rationale: FATF Recommendations set international AML/CFT standards.
9. Customer Due Diligence (CDD) is best defined as:
A. Ongoing transaction monitoring
B. Reporting suspicious activity
C. The process of identifying and verifying customers
D. Auditing financial statements
Rationale: CDD establishes customer identity and risk profile.
10.Enhanced Due Diligence (EDD) is required for:
A. All customers
B. Low-risk customers
C. High-risk customers
D. Dormant accounts
Rationale: EDD applies when higher ML/TF risk is identified.
11.A Politically Exposed Person (PEP) is:
A. Any government employee
B. An individual with a prominent public function
C. A private-sector executive
D. A foreign national
Rationale: PEPs pose higher corruption and ML risk due to their position.
12.Which customer presents the highest inherent AML risk?
A. Local salaried employee
B. Retired pensioner
C. Foreign PEP with complex business interests
D. University student
Rationale: Foreign PEPs with complex structures are high risk.
13.Suspicious Activity Reports (SARs) are filed when:
A. Transactions exceed reporting thresholds
Specialist (Cams) Exam Question And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A Instant Download
1. Money laundering is best described as:
A. The movement of funds across borders
B. The process of concealing the origin of illegally obtained money
C. Tax avoidance through legal means
D. Investment of funds in high-risk assets
Rationale: Money laundering involves disguising the illicit origin of funds
to make them appear legitimate.
2. The three traditional stages of money laundering are:
A. Collection, transfer, spending
B. Smurfing, layering, integration
C. Placement, layering, integration
D. Deposit, withdrawal, concealment
Rationale: Placement introduces illicit funds, layering obscures the trail,
and integration reintroduces funds as legitimate.
3. Which stage of money laundering involves complex financial transactions to
hide the source of funds?
A. Placement
B. Layering
C. Integration
D. Smurfing
, Rationale: Layering uses multiple transactions to distance funds from their
illegal source.
4. Which activity is most associated with the placement stage?
A. Purchasing luxury goods
B. Wire transfers through shell companies
C. Depositing cash into financial institutions
D. Investing in real estate
Rationale: Placement typically involves introducing illicit cash into the
financial system.
5. The primary goal of integration is to:
A. Break large sums into smaller amounts
B. Transfer funds internationally
C. Make illicit funds appear legitimate
D. Avoid reporting thresholds
Rationale: Integration allows criminals to use laundered money openly.
6. Which organization administers the CAMS certification?
A. FATF
B. Basel Committee
C. IMF
D. ACAMS
Rationale: The Association of Certified Anti-Money Laundering Specialists
(ACAMS) awards the CAMS credential.
7. FATF stands for:
A. Federal Anti–Terrorism Force
B. Financial Action Trade Forum
C. Financial Action Task Force
D. Fiscal Accountability Task Framework
Rationale: FATF is the global standard-setter for AML and CFT.
8. FATF Recommendations primarily address:
A. Tax compliance
, B. Money laundering and terrorist financing
C. Market manipulation
D. Consumer protection
Rationale: FATF Recommendations set international AML/CFT standards.
9. Customer Due Diligence (CDD) is best defined as:
A. Ongoing transaction monitoring
B. Reporting suspicious activity
C. The process of identifying and verifying customers
D. Auditing financial statements
Rationale: CDD establishes customer identity and risk profile.
10.Enhanced Due Diligence (EDD) is required for:
A. All customers
B. Low-risk customers
C. High-risk customers
D. Dormant accounts
Rationale: EDD applies when higher ML/TF risk is identified.
11.A Politically Exposed Person (PEP) is:
A. Any government employee
B. An individual with a prominent public function
C. A private-sector executive
D. A foreign national
Rationale: PEPs pose higher corruption and ML risk due to their position.
12.Which customer presents the highest inherent AML risk?
A. Local salaried employee
B. Retired pensioner
C. Foreign PEP with complex business interests
D. University student
Rationale: Foreign PEPs with complex structures are high risk.
13.Suspicious Activity Reports (SARs) are filed when:
A. Transactions exceed reporting thresholds
