CAMS - CHAPTER 2 - PRACTICE
QUESTIONS & ANSWERS
Under the FATF Recommendations, when should a bank perform a risk assessment on
issuing a new product to market?
A. 30 days from the official launch date
B. 90 days from the official launch date
C. During the product testing phase, but before final details on the product are defined
D. Prior to launching the product into the market to identify appropriate measures to
mitigate identified risks. - ANSWER D
The scope of the 3rd EU ML Directive differs from the 2nd EU ML Directive in that:
A. It specifically excludes the category of trust and company service providers
B. It covers all dealers trading in goods who trade in cash over 25,000 Euros.
C. It brought money remittance offices under AML coverage.
D. The definition of financial institution includes certain insurance intermediaries -
ANSWER D
According to the Basel Committee, banks without due diligence requirements can be
subject to the following:
A. Organizational risk
B. Transactional risk
C. Legal risk
D. Confiscation risk - ANSWER C
According to the Basel Committee, banks should perform the following customer due
diligence measures?
1. Develop customer acceptance policies and procedures describing the customers
background, country of origin, and business activities.
2. Establish policies and procedures to accommodate protecting the identity of private
banking accounts.
3. Develop clear and concise description of who is an acceptable customer.
According to the Basel Committee, A critical way to mitigate money laundering risk is by
using the transaction monitoring system to?
QUESTIONS & ANSWERS
Under the FATF Recommendations, when should a bank perform a risk assessment on
issuing a new product to market?
A. 30 days from the official launch date
B. 90 days from the official launch date
C. During the product testing phase, but before final details on the product are defined
D. Prior to launching the product into the market to identify appropriate measures to
mitigate identified risks. - ANSWER D
The scope of the 3rd EU ML Directive differs from the 2nd EU ML Directive in that:
A. It specifically excludes the category of trust and company service providers
B. It covers all dealers trading in goods who trade in cash over 25,000 Euros.
C. It brought money remittance offices under AML coverage.
D. The definition of financial institution includes certain insurance intermediaries -
ANSWER D
According to the Basel Committee, banks without due diligence requirements can be
subject to the following:
A. Organizational risk
B. Transactional risk
C. Legal risk
D. Confiscation risk - ANSWER C
According to the Basel Committee, banks should perform the following customer due
diligence measures?
1. Develop customer acceptance policies and procedures describing the customers
background, country of origin, and business activities.
2. Establish policies and procedures to accommodate protecting the identity of private
banking accounts.
3. Develop clear and concise description of who is an acceptable customer.
According to the Basel Committee, A critical way to mitigate money laundering risk is by
using the transaction monitoring system to?
