ACAMS Exam Questions with Correct Answers 100% Verified By Experts| Latest Update
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Which of the following statements is true?
A. Credit cards are not likely to be used in the layering phrase of money laundering because of
restrictions in cash payments
B. Credit cards are effective instruments for laundering money because the transactions do not
create an audit trail
C. A laundered can launder money by prepaying his credit card using funds that are already in
the banking system, creating a credit balance on the account, and requesting a credit refund
D. A launderer can use illicit funds that are already in the banking system to pay his credit card
bill for goods purchased, which is an example of placement C. A laundered can launder
money by prepaying his credit card using funds that are already in the banking system, creating
a credit balance on the account, and requesting a credit refund
Why is a payable through account (PTA) vulnerable to money laundering?
A. It can be very difficult to conduct due diligence on the foreign institution customers who are
ultimately using these accounts
B. These are concentration accounts located in a domestic branch of a foreign bank
C. These are nested correspondent accounts located in a domestic branch of a foreign bank
D. These are master escrow accounts on which a domestic bank generally does not conduct
periodic verification A. It can be very difficult to conduct due diligence on the foreign
institution customers who are ultimately using these accounts
What is the reasoning behind implementing a "risk based money laundering approach"?
A. It will keep the regulators focused on money laundering controls in sectors beyond banks
B. Institutions can best use their limited resources to focus on matters where the money
laundering risks are highest
.C. A quantitative approach will generate better results than a qualitative approach
,D. It allows the institution to focus on selling products that have a better return on investment
B. Institutions can best use their limited resources to focus on matters where the money
laundering risks are highest
According to the FATF 40 Recommendations, "designated non-financial business and
professions" include:
A. Casinos, real estate agents and dealers in precious stones
B. Money service businesses, gatekeepers, and issues of electronic money
C. Dealers in precious metals, lawyers, commodity futures traders
D. Life insurance companies, real estate agents and notaries A. Casinos, real estate agents
and dealers in precious stones
According to the FATF 40 Recommendations, the threshold for identifying occasional customers
at financial institutions is:
A. EURO/US $5,000
B EURO/US $10,000
C. EURO/US $15,000
D. EURO/US $20,000 C. EURO/US $15,000
Tom works as a compliance officer at ABC Bank. He is looking at the transactions of one of the
bank's customers, Mr. Brown, the owner of a check cashing company. Over the last six months,
Mr. Brown has not made withdrawals of cash against check deposits. He also deposited two
checks for $2,000 each that were issued by a casino. When checking the KYC file, Tom sees that,
when opening the account, Mr. Brown had requested detailed information about fees and
commission that are charged by the bank .What should arouse Tom's suspicion the most? Mr.
Brown:
A. Deposited checks from casinos
B. Did not make withdrawals of cash against check deposits
, C. Showed uncommon curiosity about commissions and fees charged
D. Does not have an escrow account B. Did not make withdrawals of cash against check
deposits
A small broker dealer has an AML Compliance program that addresses procedures for filing
SARs and includes policies, procedures, and internal controls for customer identification,
monitoring accounts, and identifying money laundering red flags. Every employee of another
broker dealer is trained via the Internet in January and in July on AML issues. The board does
not take the internet training. Instead, the compliance officer organizes a luncheon for them
where an outsider comes in and trains them. The program provides for the appointment of a
compliance officer, and once a year the compliance officer conducts an audit to test the
program. In what respect does the program need improvement?
A. The AML program should be tested by an independent person, not the compliance officer
B. The AML program should be tested more than once per year
C. The board should receive the same training provided to the employees
D. Employ A. The AML program should be tested by an independent person, not the
compliance officer.
Susan works as a senior Money Laundering Reporting Officer at XYZ Bank. She is taking a closer
look at the activities of several customers. What would arose her suspicion the MOST?
A. A customer who owns several check cashing companies in town and rents safe deposit boxes
at different branches
B. A customer who avoids taking vacations
C. A small business that provides financial statements which are not prepared by an accountant
D. A customer involved in investment management who guarantees a very high rate of return,
well above what other competitors can offer D. A customer involved in investment
management who guarantees a very high rate of return, well above what other competitors can
offer
Which of the following best describes the "alternative remittance system"?
Guaranteed Success
Which of the following statements is true?
A. Credit cards are not likely to be used in the layering phrase of money laundering because of
restrictions in cash payments
B. Credit cards are effective instruments for laundering money because the transactions do not
create an audit trail
C. A laundered can launder money by prepaying his credit card using funds that are already in
the banking system, creating a credit balance on the account, and requesting a credit refund
D. A launderer can use illicit funds that are already in the banking system to pay his credit card
bill for goods purchased, which is an example of placement C. A laundered can launder
money by prepaying his credit card using funds that are already in the banking system, creating
a credit balance on the account, and requesting a credit refund
Why is a payable through account (PTA) vulnerable to money laundering?
A. It can be very difficult to conduct due diligence on the foreign institution customers who are
ultimately using these accounts
B. These are concentration accounts located in a domestic branch of a foreign bank
C. These are nested correspondent accounts located in a domestic branch of a foreign bank
D. These are master escrow accounts on which a domestic bank generally does not conduct
periodic verification A. It can be very difficult to conduct due diligence on the foreign
institution customers who are ultimately using these accounts
What is the reasoning behind implementing a "risk based money laundering approach"?
A. It will keep the regulators focused on money laundering controls in sectors beyond banks
B. Institutions can best use their limited resources to focus on matters where the money
laundering risks are highest
.C. A quantitative approach will generate better results than a qualitative approach
,D. It allows the institution to focus on selling products that have a better return on investment
B. Institutions can best use their limited resources to focus on matters where the money
laundering risks are highest
According to the FATF 40 Recommendations, "designated non-financial business and
professions" include:
A. Casinos, real estate agents and dealers in precious stones
B. Money service businesses, gatekeepers, and issues of electronic money
C. Dealers in precious metals, lawyers, commodity futures traders
D. Life insurance companies, real estate agents and notaries A. Casinos, real estate agents
and dealers in precious stones
According to the FATF 40 Recommendations, the threshold for identifying occasional customers
at financial institutions is:
A. EURO/US $5,000
B EURO/US $10,000
C. EURO/US $15,000
D. EURO/US $20,000 C. EURO/US $15,000
Tom works as a compliance officer at ABC Bank. He is looking at the transactions of one of the
bank's customers, Mr. Brown, the owner of a check cashing company. Over the last six months,
Mr. Brown has not made withdrawals of cash against check deposits. He also deposited two
checks for $2,000 each that were issued by a casino. When checking the KYC file, Tom sees that,
when opening the account, Mr. Brown had requested detailed information about fees and
commission that are charged by the bank .What should arouse Tom's suspicion the most? Mr.
Brown:
A. Deposited checks from casinos
B. Did not make withdrawals of cash against check deposits
, C. Showed uncommon curiosity about commissions and fees charged
D. Does not have an escrow account B. Did not make withdrawals of cash against check
deposits
A small broker dealer has an AML Compliance program that addresses procedures for filing
SARs and includes policies, procedures, and internal controls for customer identification,
monitoring accounts, and identifying money laundering red flags. Every employee of another
broker dealer is trained via the Internet in January and in July on AML issues. The board does
not take the internet training. Instead, the compliance officer organizes a luncheon for them
where an outsider comes in and trains them. The program provides for the appointment of a
compliance officer, and once a year the compliance officer conducts an audit to test the
program. In what respect does the program need improvement?
A. The AML program should be tested by an independent person, not the compliance officer
B. The AML program should be tested more than once per year
C. The board should receive the same training provided to the employees
D. Employ A. The AML program should be tested by an independent person, not the
compliance officer.
Susan works as a senior Money Laundering Reporting Officer at XYZ Bank. She is taking a closer
look at the activities of several customers. What would arose her suspicion the MOST?
A. A customer who owns several check cashing companies in town and rents safe deposit boxes
at different branches
B. A customer who avoids taking vacations
C. A small business that provides financial statements which are not prepared by an accountant
D. A customer involved in investment management who guarantees a very high rate of return,
well above what other competitors can offer D. A customer involved in investment
management who guarantees a very high rate of return, well above what other competitors can
offer
Which of the following best describes the "alternative remittance system"?
