CAMS Exam Questions with Verified Correct Answers

Moneyval - Answer-Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism GAFISUD - Answer-Financial Action Task Force on Money Laundering in South America MENAFATF - Answer-Middle East and North Africa Financial Action Task Force EAG - Answer-Eur Asian Group GIABA - Answer-Intergovernmental Action Group against Money Laundering in Africa Why is 'refining' critical to a money launderer's efforts? - Answer-If one needs to transport currency across borders, one needs to have the smallest package possible to avoid detection. What does the 'SEC' (US Securities and Exchange Commission) do? Under what authority? - Answer-Among other things, it regulates brokers and dealers, under authority of the Securities Exchange Act of 1934. Respondent Bank - Answer-A bank which uses the services of another bank, such as check clearing, wire transfers, etc. The bank providing the service is the 'Correspondent Bank' What must a financial institution do if they have 'Exempt Accounts'? - Answer-The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions. Who appoints a 'Federal Receiver' (US)? - Answer-A US Federal Court What was the effect of the 1988 Vienna Convention as it relates to extradition? - Answer-If provided for money laundering to be an internationally extraditable offense. In general terms, EDD requires what of a financial institution? - Answer-To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate. What is the goal of the Egmont group? - Answer-To provide a forum for FIU's (Financial Intelligence Unit) to improve support to their respective national AML programs and development protocols for the sharing of information.