CERTIFIED ANTI-MONEY LAUNDERING
SPECIALIST (CAMS) QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. The primary objective of an Anti-Money Laundering (AML) program is to:
A. Increase profitability
B. Ensure customer satisfaction
C. Detect and prevent money laundering and terrorist financing
D. Reduce operational costs
Answer: C
Rationale: The core purpose of AML programs is to identify, deter, and report
money laundering and terrorist financing activities.
2. Which stage of money laundering involves introducing illegal funds into the
financial system?
A. Integration
B. Placement
C. Layering
D. Conversion
Answer: B
Rationale: Placement is the initial stage where illicit funds enter the legitimate
financial system.
, 3. Layering in money laundering is best described as:
A. Spending illegal funds openly
B. Conducting complex transactions to obscure the origin of funds
C. Depositing cash into banks
D. Investing funds in real estate
Answer: B
Rationale: Layering involves multiple transactions designed to hide the audit
trail of illicit funds.
4. Integration refers to:
A. Breaking up large transactions
B. Moving funds offshore
C. Reintroducing laundered funds into the economy as legitimate assets
D. Reporting suspicious activity
Answer: C
Rationale: Integration makes illicit funds appear legitimate after placement and
layering.
5. Which organization sets international AML standards?
A. World Bank
B. IMF
C. Financial Action Task Force (FATF)
D. United Nations
Answer: C
Rationale: FATF establishes global AML/CFT standards and recommendations.
, 6. Customer Due Diligence (CDD) primarily involves:
A. Monitoring transactions only
B. Identifying and verifying customer identity
C. Filing regulatory reports
D. Auditing financial statements
Answer: B
Rationale: CDD focuses on knowing who the customer is and understanding
their risk profile.
7. Enhanced Due Diligence (EDD) is required for:
A. Low-risk customers
B. All customers equally
C. High-risk customers
D. Dormant accounts
Answer: C
Rationale: EDD applies additional scrutiny to customers with higher ML/TF risk.
8. A Politically Exposed Person (PEP) is:
A. Any government employee
B. An individual with prominent public functions and higher corruption
risk
C. A private sector executive
D. A foreign investor
Answer: B
Rationale: PEPs pose higher ML risk due to access to public funds and influence.
9. Suspicious Activity Reports (SARs) are filed when:
A. Transactions exceed a threshold
B. Suspicious behavior is detected regardless of amount
SPECIALIST (CAMS) QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. The primary objective of an Anti-Money Laundering (AML) program is to:
A. Increase profitability
B. Ensure customer satisfaction
C. Detect and prevent money laundering and terrorist financing
D. Reduce operational costs
Answer: C
Rationale: The core purpose of AML programs is to identify, deter, and report
money laundering and terrorist financing activities.
2. Which stage of money laundering involves introducing illegal funds into the
financial system?
A. Integration
B. Placement
C. Layering
D. Conversion
Answer: B
Rationale: Placement is the initial stage where illicit funds enter the legitimate
financial system.
, 3. Layering in money laundering is best described as:
A. Spending illegal funds openly
B. Conducting complex transactions to obscure the origin of funds
C. Depositing cash into banks
D. Investing funds in real estate
Answer: B
Rationale: Layering involves multiple transactions designed to hide the audit
trail of illicit funds.
4. Integration refers to:
A. Breaking up large transactions
B. Moving funds offshore
C. Reintroducing laundered funds into the economy as legitimate assets
D. Reporting suspicious activity
Answer: C
Rationale: Integration makes illicit funds appear legitimate after placement and
layering.
5. Which organization sets international AML standards?
A. World Bank
B. IMF
C. Financial Action Task Force (FATF)
D. United Nations
Answer: C
Rationale: FATF establishes global AML/CFT standards and recommendations.
, 6. Customer Due Diligence (CDD) primarily involves:
A. Monitoring transactions only
B. Identifying and verifying customer identity
C. Filing regulatory reports
D. Auditing financial statements
Answer: B
Rationale: CDD focuses on knowing who the customer is and understanding
their risk profile.
7. Enhanced Due Diligence (EDD) is required for:
A. Low-risk customers
B. All customers equally
C. High-risk customers
D. Dormant accounts
Answer: C
Rationale: EDD applies additional scrutiny to customers with higher ML/TF risk.
8. A Politically Exposed Person (PEP) is:
A. Any government employee
B. An individual with prominent public functions and higher corruption
risk
C. A private sector executive
D. A foreign investor
Answer: B
Rationale: PEPs pose higher ML risk due to access to public funds and influence.
9. Suspicious Activity Reports (SARs) are filed when:
A. Transactions exceed a threshold
B. Suspicious behavior is detected regardless of amount
