ACAMS PRACTICE QUESTIONS WITH ALL CORRECT &
100% VERIFIED ANSWERS|ACTUAL COMPLETE EXAM|
ALREADY GRADED A+ (JUST RELEASED)
The USA PATRIOT Act was passed in:
A) 1970
B) 1985
C) 2001
D) 2007 ✔Correct Answer-C
The three stages of money laundering are:
A) Layering, Placement, Refining
B) Placement, Refining, Integration
C) Refining. Integration, Layering
D) Integration, Layering, Placement ✔Correct Answer-D
Which of the following would be satisfactory elements of an Anti-Money Laundering Program?
I - A CAMS certified employee in the Investigations Unit writes up a few policies and procedures and
posts them on the department bulletin board.
II - Shortly after attaining their CAMS certification, the individual provides AML training to the
Investigations Unit.
III - The CAMS certified individual routinely reviews the work of the Investigations Unit.
IV - The CAMS certified individual assumes the responsibility of a compliance watchdog.
A) All of the above would be satisfactory
B) II and IV would be satisfactory
C) I and III would be satisfactory
D) None of the above would be satisfactory
,The correct answer would be "D - None of the above would be satisfactory."
I - The AML program must be approved by the Board of Directors.
II - An AML training program is required of all personnel (and contrac ✔Correct Answer-D
In determining what risks a customer poses, which consideration should NOT be a major factor?
A) Where the customer resides or where the business is headquartered.
B) What is the size of your financial institution.
C) What occupation or type of business does the customer derive their income from.
D) What are the customer's ethnic heritage, sexual orientation and political beliefs.
,The correct answer would be "D." The customer's ethnic heritage, sexual orientation and political
beliefs are more discriminatory factors, and while they may help frame the context of certain
transactions, they should not be a major factor in assessing risk.
The size of your financial institution is a critical element in determining the level of sensitivity to risks
for certain customers.
Analysis questions require one to synthesize information, arrive at solutions and/or evaluate the
usefulness of solutions. One ✔Correct Answer-D
In general, the three phases of money laundering are said to be: Placement:
A. Structuring and manipulation.
B. Layering and integration.
C. Layering and smur ng.
D. Integration and in ltration. ✔Correct Answer-B
Which of the following is the most common method of laundering money through a legal money
services business?
A. Purchasing structured money instruments.
B. Smuggling bulk-cash.
C. Transferring funds through Payable Through Accounts (PTAs).
D. Exchanging Colombian pesos on the black market. ✔Correct Answer-A
Which statement is true?
A. Bust-out schemes are popular in creating large bankruptcy frauds where businesses secure
increasing loans in excess of the actual value of the company or property and then run with the
money, leaving the lender to foreclose and take a substantial loss.
B. Cuckoo smur ng is a signi cant money laundering technique identi ed by the Financial Action Task
Force, where a form of structuring uses nested accounts with shell banks in secrecy havens.
C. In its 40 Recommendations, the FATF issued a list of "designated categories of offense" that asserts
crimes for a money laundering prosecution.
D. E-cash is not attractive to the money launderer because it cannot be completely anonymous and
does not allow for large amounts to be "transported" quickly and easily. ✔Correct Answer-A
Which three of the following is an indication of possible money laundering in an insurance industry
scenario?
A. Insurance products sold through intermediaries, agents or brokers.
B. Single-premium insurance bonds, redeemed at a discount.
C. Policyholders who are unconcerned about penalties for early cancellation.
D. Policyholders who make full use of the "free look" period. ✔Correct Answer-BCD
Which two activities are typically associated with the black market peso exchange (BMPE) money
laundering system?
A. Converting illicit drug proceeds from dollars or Euros to Colombian pesos.
B. Converting illicit drug proceeds from Colombian pesos to dollars or Euros.
C. Facilitating purchases by Colombian importers of goods manufactured in the United States or
Europe through peso brokers.
, D. Facilitating purchases by European or U.S. importers of goods manufactured in Colombia through
peso brokers. ✔Correct Answer-AC
What is the Right of Reciprocity in the eld of international cooperation against money laundering?
A. The legal principle that nancial institutions that have referred customers to other nancial
institutions can share information about these customers with the other institutions.
B. A rule of the Basel Committee allowing properly regulated nancial institutes of another member
state of the Basel Committee to do business without additional supervision to the degree that the
other state grants the same right.
C. The right of each FATF member country to delegate prosecution of a case of money laundering to
another member that is already investigating the same case.
D. A rule in the law of a country allowing its authorities to cooperate with authorities of other
countries to the degree that their law allows them to do the same. ✔Correct Answer-D
The greatest risk for money laundering is for casinos that
A. Provide their customers with a wide array of gambling services.
B. Operate in a non-Egmont member country.
C. Allow customers with credit balances to withdraw funds by check in another jurisdiction.
D. Only send suspicious transaction reports to the nancial intelligence unit of the country it operates
in. ✔Correct Answer-C
Which statement is true regarding the risk of Politically Exposed Persons (PEPs)?
A. PEPs provide access to third parties on whom the nancial institution has not conducted suf cient
due diligence.
B. PEPs have signi cantly greater exposure to the politically corrupt funds, including accepting bribes
or misappropriating government funds.
C. PEPs are foreign customers who inherently present additional risk as they are engaged in cross-
border transactions.
D. PEPs generally do not pose enhanced risks to an institution due to their political standing; rather,
PEPs increase the prestige of an institution. ✔Correct Answer-B
Dirty money, derived from criminal activities of
Belgian Criminal A, is sent to a foreign bank account
of Corporation B. Then in Belgium, a new investment Company C is incorporated. Criminal A is
appointed as a director of Company C. Company C borrows money from the foreign Company B and
buys real estate in Belgium. The real estate is rented to third parties. Director (Criminal) A also rents
an apartment in the building. With the funds generated by the rent, Company C pays off
the loan to Corporation B, and the salary of Director A. Criminal A now converted his dirty money in
legal funds. This laundering method is commonly referred to as what?
A. Offsetting real estate transactions.
B. Loan back.
C. Cuckoo smur ng.
D. Loan manipulation. ✔Correct Answer-B
A new customer approaches a bank to open a commercial account. The customer provides an
address for the account located across the city from the branch. When asked by the account
representative if the customer requires any additional banking services, the customer responds she
is also interested in opening a personal investment account. The account representative refers the
customer to their broker-dealer. The customer tells the rm representative she has never had a
brokerage account before and has a few questions about how an investment account works. The
customer asks how deposits can be made into her account, if there are any reporting requirements,
100% VERIFIED ANSWERS|ACTUAL COMPLETE EXAM|
ALREADY GRADED A+ (JUST RELEASED)
The USA PATRIOT Act was passed in:
A) 1970
B) 1985
C) 2001
D) 2007 ✔Correct Answer-C
The three stages of money laundering are:
A) Layering, Placement, Refining
B) Placement, Refining, Integration
C) Refining. Integration, Layering
D) Integration, Layering, Placement ✔Correct Answer-D
Which of the following would be satisfactory elements of an Anti-Money Laundering Program?
I - A CAMS certified employee in the Investigations Unit writes up a few policies and procedures and
posts them on the department bulletin board.
II - Shortly after attaining their CAMS certification, the individual provides AML training to the
Investigations Unit.
III - The CAMS certified individual routinely reviews the work of the Investigations Unit.
IV - The CAMS certified individual assumes the responsibility of a compliance watchdog.
A) All of the above would be satisfactory
B) II and IV would be satisfactory
C) I and III would be satisfactory
D) None of the above would be satisfactory
,The correct answer would be "D - None of the above would be satisfactory."
I - The AML program must be approved by the Board of Directors.
II - An AML training program is required of all personnel (and contrac ✔Correct Answer-D
In determining what risks a customer poses, which consideration should NOT be a major factor?
A) Where the customer resides or where the business is headquartered.
B) What is the size of your financial institution.
C) What occupation or type of business does the customer derive their income from.
D) What are the customer's ethnic heritage, sexual orientation and political beliefs.
,The correct answer would be "D." The customer's ethnic heritage, sexual orientation and political
beliefs are more discriminatory factors, and while they may help frame the context of certain
transactions, they should not be a major factor in assessing risk.
The size of your financial institution is a critical element in determining the level of sensitivity to risks
for certain customers.
Analysis questions require one to synthesize information, arrive at solutions and/or evaluate the
usefulness of solutions. One ✔Correct Answer-D
In general, the three phases of money laundering are said to be: Placement:
A. Structuring and manipulation.
B. Layering and integration.
C. Layering and smur ng.
D. Integration and in ltration. ✔Correct Answer-B
Which of the following is the most common method of laundering money through a legal money
services business?
A. Purchasing structured money instruments.
B. Smuggling bulk-cash.
C. Transferring funds through Payable Through Accounts (PTAs).
D. Exchanging Colombian pesos on the black market. ✔Correct Answer-A
Which statement is true?
A. Bust-out schemes are popular in creating large bankruptcy frauds where businesses secure
increasing loans in excess of the actual value of the company or property and then run with the
money, leaving the lender to foreclose and take a substantial loss.
B. Cuckoo smur ng is a signi cant money laundering technique identi ed by the Financial Action Task
Force, where a form of structuring uses nested accounts with shell banks in secrecy havens.
C. In its 40 Recommendations, the FATF issued a list of "designated categories of offense" that asserts
crimes for a money laundering prosecution.
D. E-cash is not attractive to the money launderer because it cannot be completely anonymous and
does not allow for large amounts to be "transported" quickly and easily. ✔Correct Answer-A
Which three of the following is an indication of possible money laundering in an insurance industry
scenario?
A. Insurance products sold through intermediaries, agents or brokers.
B. Single-premium insurance bonds, redeemed at a discount.
C. Policyholders who are unconcerned about penalties for early cancellation.
D. Policyholders who make full use of the "free look" period. ✔Correct Answer-BCD
Which two activities are typically associated with the black market peso exchange (BMPE) money
laundering system?
A. Converting illicit drug proceeds from dollars or Euros to Colombian pesos.
B. Converting illicit drug proceeds from Colombian pesos to dollars or Euros.
C. Facilitating purchases by Colombian importers of goods manufactured in the United States or
Europe through peso brokers.
, D. Facilitating purchases by European or U.S. importers of goods manufactured in Colombia through
peso brokers. ✔Correct Answer-AC
What is the Right of Reciprocity in the eld of international cooperation against money laundering?
A. The legal principle that nancial institutions that have referred customers to other nancial
institutions can share information about these customers with the other institutions.
B. A rule of the Basel Committee allowing properly regulated nancial institutes of another member
state of the Basel Committee to do business without additional supervision to the degree that the
other state grants the same right.
C. The right of each FATF member country to delegate prosecution of a case of money laundering to
another member that is already investigating the same case.
D. A rule in the law of a country allowing its authorities to cooperate with authorities of other
countries to the degree that their law allows them to do the same. ✔Correct Answer-D
The greatest risk for money laundering is for casinos that
A. Provide their customers with a wide array of gambling services.
B. Operate in a non-Egmont member country.
C. Allow customers with credit balances to withdraw funds by check in another jurisdiction.
D. Only send suspicious transaction reports to the nancial intelligence unit of the country it operates
in. ✔Correct Answer-C
Which statement is true regarding the risk of Politically Exposed Persons (PEPs)?
A. PEPs provide access to third parties on whom the nancial institution has not conducted suf cient
due diligence.
B. PEPs have signi cantly greater exposure to the politically corrupt funds, including accepting bribes
or misappropriating government funds.
C. PEPs are foreign customers who inherently present additional risk as they are engaged in cross-
border transactions.
D. PEPs generally do not pose enhanced risks to an institution due to their political standing; rather,
PEPs increase the prestige of an institution. ✔Correct Answer-B
Dirty money, derived from criminal activities of
Belgian Criminal A, is sent to a foreign bank account
of Corporation B. Then in Belgium, a new investment Company C is incorporated. Criminal A is
appointed as a director of Company C. Company C borrows money from the foreign Company B and
buys real estate in Belgium. The real estate is rented to third parties. Director (Criminal) A also rents
an apartment in the building. With the funds generated by the rent, Company C pays off
the loan to Corporation B, and the salary of Director A. Criminal A now converted his dirty money in
legal funds. This laundering method is commonly referred to as what?
A. Offsetting real estate transactions.
B. Loan back.
C. Cuckoo smur ng.
D. Loan manipulation. ✔Correct Answer-B
A new customer approaches a bank to open a commercial account. The customer provides an
address for the account located across the city from the branch. When asked by the account
representative if the customer requires any additional banking services, the customer responds she
is also interested in opening a personal investment account. The account representative refers the
customer to their broker-dealer. The customer tells the rm representative she has never had a
brokerage account before and has a few questions about how an investment account works. The
customer asks how deposits can be made into her account, if there are any reporting requirements,
