ACAMS STUDY GUIDE PRACTICE ACTUAL COMPLETE
EXAM|WITH ACCURATE QUESTIONS AND VERIFIED
ANSWERS|GRADED A
39. According to the European Union's Fourth Directive, the threshold
for entities obliged to report suspicious transactions decreased to
A. $5,000 euros.
B. $10,000 euros.
C. $15,000 euros.
D. $20,000 euros. Ans✓✓✓ b
A compliance officer is looking to improve a compliance program for a
financial institution that operates in several countries. The institution has
developed consistent customer due diligence (CDD) requirements for all
customers of the institution that exceed each of the individual country's
requirements. When looking to provide management reporting on the
CDD compliance efforts of the
institution, which of the following would make the most sense?
A. Report by each country's compliance with the legal requirements
within their country.
B. Report on compliance with the company's stated requirements.
C. Report on compliance with each country's requirements only for
those customers that are serviced by branches in multiple countries; all
others should be reported on the company's stated
requirements.
D. Report on the level of monitoring performed on the activity in the
accounts. Ans✓✓✓ b
,A compliance officer is looking to provide some way to report on the
effectiveness of the AML program to senior management. Which of the
following would be the most appropriate means to keep senior
management informed of these efforts?
A. Develop a report containing metrics that reflect the effectiveness of
various key program elements.
B. Rely on the regulatory examinations.
C. Provide a summary of all reported suspicious activity.
D. Provide detailed training to senior management on their AML
obligations. Ans✓✓✓ a
A customer at a brokerage firm indicated that he was primarily a
conservative, long-range investor. The customer has recently been
engaging in day trading in penny stocks. What should an AML
compliance officer do in such a situation?
A. Check with the account officer to see if the customer has indicated a
change in his investment strategy.
B. Report the customer as suspicious due to investing in penny stocks.
C. Contact the customer and ask why he is engaged in high-risk day-
trading activity.
D. Refer the customer to senior management for approval. Ans✓✓✓ a
A customer wants to establish a sizable relationship with a financial
institution. The AML officer is not comfortable with the client's
explanation for the source of the funds, but the client manager vouches
,for the client and is eager to open the relationship quickly. What should
the AML officer do to validate the client's sources of funds?
A. Accept the client manager's approval of the client.
B. Allow the account to be opened but be sure to monitor the account
activity.
C. Perform a background investigation to determine whether the client's
source of funds is credible.
D. Decline the account. Ans✓✓✓ c
A financial institution branch manager who has been in place for over 10
years has not taken a vacation for almost four years. The company does
not allow employees to roll vacation over from year to year.
An AML compliance officer has noticed unusual activity in several
accounts at the branch location. What should the AML officer do?
A. Fire the manager for violation of bank policy.
B. Report the manager to authorities for engaging in suspicious activity.
C. Conduct an investigation to establish whether the manager has
engaged in transactions in the accounts where the unusual activity has
occurred.
D. Conduct a background check to see if the manager has been
convicted of criminal activity. Ans✓✓✓ c
A financial institution is concerned about the possibility of the proceeds
from human trafficking being funneled through the institution. What are
three things the institution should look out for?
, A. Multiple wire transfers, often below the reporting thresholds, sent
from foreign countries
B. Multiple, unrelated individuals sending wires to the same beneficiary
C. Accounts for foreign workers for which the employment agency is
the custodian for the accounts
D. A group of four women who come into the financial institution to
open separate accounts Ans✓✓✓ a, b & c
A financial institution is looking to establish an online account opening
service. The institution plans to offer this product to new and existing
customers within the country. Which of the following would
be the best plan of action for an AML specialist to recommend enabling
the institution to verify the customer's identity?
A. Do not offer the product, because it is too high risk because the
customers cannot be seen to verify their identities.
B. Require all customers to send a copy of valid photo identification to
the institution.
C. Ensure that the institution has a reliable third-party source that will
enable verification of the customers.
D. Allow customers to enter required information but require all
customers to come to the institution in person for verification. Ans✓✓✓
c
A law enforcement representative calls up the compliance officer and
urgently requests information pertaining to a particular account in
connection with an on-going terrorist financing investigation. What
should the compliance officer do?
EXAM|WITH ACCURATE QUESTIONS AND VERIFIED
ANSWERS|GRADED A
39. According to the European Union's Fourth Directive, the threshold
for entities obliged to report suspicious transactions decreased to
A. $5,000 euros.
B. $10,000 euros.
C. $15,000 euros.
D. $20,000 euros. Ans✓✓✓ b
A compliance officer is looking to improve a compliance program for a
financial institution that operates in several countries. The institution has
developed consistent customer due diligence (CDD) requirements for all
customers of the institution that exceed each of the individual country's
requirements. When looking to provide management reporting on the
CDD compliance efforts of the
institution, which of the following would make the most sense?
A. Report by each country's compliance with the legal requirements
within their country.
B. Report on compliance with the company's stated requirements.
C. Report on compliance with each country's requirements only for
those customers that are serviced by branches in multiple countries; all
others should be reported on the company's stated
requirements.
D. Report on the level of monitoring performed on the activity in the
accounts. Ans✓✓✓ b
,A compliance officer is looking to provide some way to report on the
effectiveness of the AML program to senior management. Which of the
following would be the most appropriate means to keep senior
management informed of these efforts?
A. Develop a report containing metrics that reflect the effectiveness of
various key program elements.
B. Rely on the regulatory examinations.
C. Provide a summary of all reported suspicious activity.
D. Provide detailed training to senior management on their AML
obligations. Ans✓✓✓ a
A customer at a brokerage firm indicated that he was primarily a
conservative, long-range investor. The customer has recently been
engaging in day trading in penny stocks. What should an AML
compliance officer do in such a situation?
A. Check with the account officer to see if the customer has indicated a
change in his investment strategy.
B. Report the customer as suspicious due to investing in penny stocks.
C. Contact the customer and ask why he is engaged in high-risk day-
trading activity.
D. Refer the customer to senior management for approval. Ans✓✓✓ a
A customer wants to establish a sizable relationship with a financial
institution. The AML officer is not comfortable with the client's
explanation for the source of the funds, but the client manager vouches
,for the client and is eager to open the relationship quickly. What should
the AML officer do to validate the client's sources of funds?
A. Accept the client manager's approval of the client.
B. Allow the account to be opened but be sure to monitor the account
activity.
C. Perform a background investigation to determine whether the client's
source of funds is credible.
D. Decline the account. Ans✓✓✓ c
A financial institution branch manager who has been in place for over 10
years has not taken a vacation for almost four years. The company does
not allow employees to roll vacation over from year to year.
An AML compliance officer has noticed unusual activity in several
accounts at the branch location. What should the AML officer do?
A. Fire the manager for violation of bank policy.
B. Report the manager to authorities for engaging in suspicious activity.
C. Conduct an investigation to establish whether the manager has
engaged in transactions in the accounts where the unusual activity has
occurred.
D. Conduct a background check to see if the manager has been
convicted of criminal activity. Ans✓✓✓ c
A financial institution is concerned about the possibility of the proceeds
from human trafficking being funneled through the institution. What are
three things the institution should look out for?
, A. Multiple wire transfers, often below the reporting thresholds, sent
from foreign countries
B. Multiple, unrelated individuals sending wires to the same beneficiary
C. Accounts for foreign workers for which the employment agency is
the custodian for the accounts
D. A group of four women who come into the financial institution to
open separate accounts Ans✓✓✓ a, b & c
A financial institution is looking to establish an online account opening
service. The institution plans to offer this product to new and existing
customers within the country. Which of the following would
be the best plan of action for an AML specialist to recommend enabling
the institution to verify the customer's identity?
A. Do not offer the product, because it is too high risk because the
customers cannot be seen to verify their identities.
B. Require all customers to send a copy of valid photo identification to
the institution.
C. Ensure that the institution has a reliable third-party source that will
enable verification of the customers.
D. Allow customers to enter required information but require all
customers to come to the institution in person for verification. Ans✓✓✓
c
A law enforcement representative calls up the compliance officer and
urgently requests information pertaining to a particular account in
connection with an on-going terrorist financing investigation. What
should the compliance officer do?
