Page 1 of 74
“CAMS EXAM PRACTICE QUESTIONS.”LATEST
EXAM SOLVED QUESTIONS & ANSWERS
VERIFIED 100% GRADED A+ (LATEST VERSION)
WELL REVISED 100% GUARANTEE PASS
CAMS Exam Practice Questions
An AML compliance officer is investigating unusual activity that she has
noticed in a customer's
accounts. The customer has a retirement account, a savings account in trust
for his son, a joint
checking account with his wife, a company checking account and an
individual brokerage account. The
compliance officer believes the customer may be embezzling funds from his
business. Which is the best
path for her to follow up on her suspicions?
A. Focus on the checking accounts, as the checking accounts allow the fastest
movement of funds.
B. Ignore the savings and brokerage accounts, as these are not used in the
placement stage of money
laundering.
C. Look at the movement of funds in all the accounts, as the customer may be
using all of them to
launder money.
D. Focus on the business account, as the customer is embezzling money from
the company.
, Page 2 of 74
C
Identify three risks to financial institution employees for violations of AML
laws.
A. Civil penalties
B. Termination of employment
C. Criminal penalties
D. Loss of passport
A, B, C
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.
A
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.
, Page 3 of 74
D. Conduct a background check to see if the manager has been convicted of
criminal activity.
C
An AML compliance officer is looking to establish a suspicious activity
reporting process at her small
institution. Which of the following should be incorporated into the
procedures?
A. Allow employees to refer suspicious activity directly to the government
authorities to file as quickly
as possible.
B. Have employees refer all unusual activity to the internal independent audit
department to assess
whether the activity should be reported.
C. Have employees refer all unusual activity to senior management to ensure
they are aware of all
unusual activity within the organization.
D. Have employees refer all unusual activity to her so that she may conduct an
investigation into what
needs to be reported to authorities.
D
After reporting suspicious activity to the appropriate authorities, they request
additional follow-up on
the reports. Which of the following actions should an AML compliance officer
take?
A. Inform the customer that his or her activity has been reported as suspicious
and the authorities are
asking about him or her.
B. Indicate to the authorities that you have fulfilled your regulatory duty by
referring the matter to
them.
C. Give the authorities everything they request.
D. Cooperate fully with the authorities, as permitted by law.
D
, Page 4 of 74
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.
B
What is the best way to establish compliance as a key responsibility for every
employee of a financial
institution?
A. Have senior management require compliance as a condition of employment.
B. Have auditors conduct testing on employee compliance.
C. Point out the regulatory consequences of non-compliance in training.
D. Have the AML officer personally tell associates of their responsibilities.
A
The Annex IV General Guide to Account Opening Consultative Document
published in February 2016
by the Basel Committee lists information that should be obtained for the
identification of legal persons.
Which three items are recommended?
A. Name, legal form, status and proof of incorporation of the legal person
B. Permanent address of principal place of the legal person's activities
“CAMS EXAM PRACTICE QUESTIONS.”LATEST
EXAM SOLVED QUESTIONS & ANSWERS
VERIFIED 100% GRADED A+ (LATEST VERSION)
WELL REVISED 100% GUARANTEE PASS
CAMS Exam Practice Questions
An AML compliance officer is investigating unusual activity that she has
noticed in a customer's
accounts. The customer has a retirement account, a savings account in trust
for his son, a joint
checking account with his wife, a company checking account and an
individual brokerage account. The
compliance officer believes the customer may be embezzling funds from his
business. Which is the best
path for her to follow up on her suspicions?
A. Focus on the checking accounts, as the checking accounts allow the fastest
movement of funds.
B. Ignore the savings and brokerage accounts, as these are not used in the
placement stage of money
laundering.
C. Look at the movement of funds in all the accounts, as the customer may be
using all of them to
launder money.
D. Focus on the business account, as the customer is embezzling money from
the company.
, Page 2 of 74
C
Identify three risks to financial institution employees for violations of AML
laws.
A. Civil penalties
B. Termination of employment
C. Criminal penalties
D. Loss of passport
A, B, C
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.
A
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.
, Page 3 of 74
D. Conduct a background check to see if the manager has been convicted of
criminal activity.
C
An AML compliance officer is looking to establish a suspicious activity
reporting process at her small
institution. Which of the following should be incorporated into the
procedures?
A. Allow employees to refer suspicious activity directly to the government
authorities to file as quickly
as possible.
B. Have employees refer all unusual activity to the internal independent audit
department to assess
whether the activity should be reported.
C. Have employees refer all unusual activity to senior management to ensure
they are aware of all
unusual activity within the organization.
D. Have employees refer all unusual activity to her so that she may conduct an
investigation into what
needs to be reported to authorities.
D
After reporting suspicious activity to the appropriate authorities, they request
additional follow-up on
the reports. Which of the following actions should an AML compliance officer
take?
A. Inform the customer that his or her activity has been reported as suspicious
and the authorities are
asking about him or her.
B. Indicate to the authorities that you have fulfilled your regulatory duty by
referring the matter to
them.
C. Give the authorities everything they request.
D. Cooperate fully with the authorities, as permitted by law.
D
, Page 4 of 74
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.
B
What is the best way to establish compliance as a key responsibility for every
employee of a financial
institution?
A. Have senior management require compliance as a condition of employment.
B. Have auditors conduct testing on employee compliance.
C. Point out the regulatory consequences of non-compliance in training.
D. Have the AML officer personally tell associates of their responsibilities.
A
The Annex IV General Guide to Account Opening Consultative Document
published in February 2016
by the Basel Committee lists information that should be obtained for the
identification of legal persons.
Which three items are recommended?
A. Name, legal form, status and proof of incorporation of the legal person
B. Permanent address of principal place of the legal person's activities
