CAMS POST ASSESSMENT EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|UPDATED TO PASS|ALREADY
GRADED A+
Which is an economic impact of money laundering on countries?
Draws attention away from fraud and corruption crimes
Allows the private sector to grow without regulations
Provides opportunities for economic growth
Undermines the legitimate financial system and markets ✔Correct Answer-Undermines the
legitimate financial system and markets
Which of the following is a necessary policy for correspondent banking to ensure a robust AML/CFT
framework?
Empower respondent banks to terminate relationships with high-risk correspondent customers.
Adequately monitor respondent banks and their AML/CFT framework.
Provide practical guidance to staff on how to verify the correspondent's ultimate beneficial owners.
Instruct respondents to escalate red flags to the correspondent's compliance officer before taking
action. ✔Correct Answer-Adequately monitor respondent banks and their AML/CFT framework.
How do PTAs expose correspondent banks to money laundering risk?
They are used by subaccount holders that are multinational financial institutions.
Subaccount holders can possess currency deposit and withdrawal privileges.
They use checks with a numeric code to identify the subaccount and its owner.
They are used by respondent banks, which have no due diligence requirements. ✔Correct Answer-
Subaccount holders can possess currency deposit and withdrawal privileges.
How can private banking relationships leave an organization vulnerable to money laundering?
A high level of confidentiality
Frequent transactions
Lower compliance requirement
Enhanced due diligence is usually not required ✔Correct Answer-A high level of confidentiality
How do money launderers use structuring to avoid threshold transaction reporting requirements?
Move funds only in jurisdictions without compulsory currency reporting requirements.
Transfer funds to offshore accounts immediately after making a deposit.
Make deposits over a period of time.
Split deposits or withdrawals into small amounts to avoid reporting thresholds. ✔Correct Answer-
Split deposits or withdrawals into small amounts to avoid reporting thresholds.
Which aspect of a MSB can increase its financial crime risk?
The relatively small size
Support areas underserved by banking sector
The requirement to obtain licenses
More modern systems compared with banks ✔Correct Answer-The relatively small size
Which of the following is a method of facilitating money laundering via securities and broker-
dealers?
Buying and selling shares through the same broker
, Wash trading
Exposing beneficial ownership
Late reporting of third parties ✔Correct Answer-Wash trading
Which is a key AML control necessary to mitigate the high risks associated with the precious metal
industry?
Confirm suppliers' identities.
Perform KYC on backend customers.
Maintain confidentiality regarding origin of metal.
Designate a compliance officer. ✔Correct Answer-Confirm suppliers' identities.
What legislation requires participants in the EU member state art markets to register with regulatory
supervisors and undertake a risk-based approach to money laundering and terrorist financing
threats?
The Anti-Money Laundering Act of 2020
The EU 5th Money Laundering Directive
The FATF 40 Recommendations
The Responsible Art Market 2019 Guidelines ✔Correct Answer-The EU 5th Money Laundering
Directive
Which channel of money laundering is associated with car dealerships?
Failure to create dealer invoices
Selling drugs at the dealership location
Exchanging drugs for shares in dealership enterprise
Unreported cash payments for vehicles ✔Correct Answer-Unreported cash payments for vehicles
What can professional service providers such as lawyers, accountants, financiers, and other
professional enablers provide for organized crime groups and terrorists?
Fake identification documents that enable the criminals to travel to other countries when needed
A level of knowledge and skill that the criminals do not possess
Professional training in red flags and how to avoid detection
A guarantee that the criminals will not be prosecuted ✔Correct Answer-Professional training in red
flags and how to avoid detection
To what group of typologies does the black-market peso exchange (BMPE) scheme belong?
Trade-based money laundering
Sanctions evasion
Bulk cash smuggling
Structuring ✔Correct Answer-Trade-based money laundering
Which element is often present in criminal activities involving cryptocurrencies?
Cryptographically secured transactions, identifiable through a user's exchange account,
cryptocurrency wallet address, and the central bank authority
Use of cryptocurrency exchange services to hide transaction amounts and balances
Discussions regarding criminality between the financial organization and cryptocurrency exchange
Transactions take place in a matter of seconds, across exchanges and jurisdictions, often from
cryptocurrency to fiat currency ✔Correct Answer-Transactions take place in a matter of seconds,
across exchanges and jurisdictions, often from cryptocurrency to fiat currency
Which of the following is a useful tool for detecting and assessing cross-border terrorist financing
risks?
100% VERIFIED ANSWERS|UPDATED TO PASS|ALREADY
GRADED A+
Which is an economic impact of money laundering on countries?
Draws attention away from fraud and corruption crimes
Allows the private sector to grow without regulations
Provides opportunities for economic growth
Undermines the legitimate financial system and markets ✔Correct Answer-Undermines the
legitimate financial system and markets
Which of the following is a necessary policy for correspondent banking to ensure a robust AML/CFT
framework?
Empower respondent banks to terminate relationships with high-risk correspondent customers.
Adequately monitor respondent banks and their AML/CFT framework.
Provide practical guidance to staff on how to verify the correspondent's ultimate beneficial owners.
Instruct respondents to escalate red flags to the correspondent's compliance officer before taking
action. ✔Correct Answer-Adequately monitor respondent banks and their AML/CFT framework.
How do PTAs expose correspondent banks to money laundering risk?
They are used by subaccount holders that are multinational financial institutions.
Subaccount holders can possess currency deposit and withdrawal privileges.
They use checks with a numeric code to identify the subaccount and its owner.
They are used by respondent banks, which have no due diligence requirements. ✔Correct Answer-
Subaccount holders can possess currency deposit and withdrawal privileges.
How can private banking relationships leave an organization vulnerable to money laundering?
A high level of confidentiality
Frequent transactions
Lower compliance requirement
Enhanced due diligence is usually not required ✔Correct Answer-A high level of confidentiality
How do money launderers use structuring to avoid threshold transaction reporting requirements?
Move funds only in jurisdictions without compulsory currency reporting requirements.
Transfer funds to offshore accounts immediately after making a deposit.
Make deposits over a period of time.
Split deposits or withdrawals into small amounts to avoid reporting thresholds. ✔Correct Answer-
Split deposits or withdrawals into small amounts to avoid reporting thresholds.
Which aspect of a MSB can increase its financial crime risk?
The relatively small size
Support areas underserved by banking sector
The requirement to obtain licenses
More modern systems compared with banks ✔Correct Answer-The relatively small size
Which of the following is a method of facilitating money laundering via securities and broker-
dealers?
Buying and selling shares through the same broker
, Wash trading
Exposing beneficial ownership
Late reporting of third parties ✔Correct Answer-Wash trading
Which is a key AML control necessary to mitigate the high risks associated with the precious metal
industry?
Confirm suppliers' identities.
Perform KYC on backend customers.
Maintain confidentiality regarding origin of metal.
Designate a compliance officer. ✔Correct Answer-Confirm suppliers' identities.
What legislation requires participants in the EU member state art markets to register with regulatory
supervisors and undertake a risk-based approach to money laundering and terrorist financing
threats?
The Anti-Money Laundering Act of 2020
The EU 5th Money Laundering Directive
The FATF 40 Recommendations
The Responsible Art Market 2019 Guidelines ✔Correct Answer-The EU 5th Money Laundering
Directive
Which channel of money laundering is associated with car dealerships?
Failure to create dealer invoices
Selling drugs at the dealership location
Exchanging drugs for shares in dealership enterprise
Unreported cash payments for vehicles ✔Correct Answer-Unreported cash payments for vehicles
What can professional service providers such as lawyers, accountants, financiers, and other
professional enablers provide for organized crime groups and terrorists?
Fake identification documents that enable the criminals to travel to other countries when needed
A level of knowledge and skill that the criminals do not possess
Professional training in red flags and how to avoid detection
A guarantee that the criminals will not be prosecuted ✔Correct Answer-Professional training in red
flags and how to avoid detection
To what group of typologies does the black-market peso exchange (BMPE) scheme belong?
Trade-based money laundering
Sanctions evasion
Bulk cash smuggling
Structuring ✔Correct Answer-Trade-based money laundering
Which element is often present in criminal activities involving cryptocurrencies?
Cryptographically secured transactions, identifiable through a user's exchange account,
cryptocurrency wallet address, and the central bank authority
Use of cryptocurrency exchange services to hide transaction amounts and balances
Discussions regarding criminality between the financial organization and cryptocurrency exchange
Transactions take place in a matter of seconds, across exchanges and jurisdictions, often from
cryptocurrency to fiat currency ✔Correct Answer-Transactions take place in a matter of seconds,
across exchanges and jurisdictions, often from cryptocurrency to fiat currency
Which of the following is a useful tool for detecting and assessing cross-border terrorist financing
risks?
