CAMS Exam Practice Questions

CAMS Exam Practice Questions How do drug traffickers and other criminals use the fine art industry to disguise illicit proceeds? A. They use forged or fraudulent invoicing of priceless works of art by auction houses B. They commingle legitimate and illicit proceeds by principals for payment of fine art C. They immediately resell priceless works of art after purchase from a foreign auction house D. They use anonymous agents to buy the art and have the payment wired from offshore havens - ✔✔D An anti-money laundering specialist at a large institution is responsible for informing senior management about the status of the anti-money laundering program across the organization. Which report is the most useful? A. The total credit exposure for non-cooperative countries and territories B. Results of related audits and examinations C. Details on inquiries received from law enforcement D. Notification of management changes in the different major divisions - ✔✔B What is most valuable when using the internet as an investigative source? A. A team of AML investigators B. A reference list of websites known to yield credible information C. A combination of independent thinking and technical skills D. A powerful search engine - ✔✔B What should senior management do in order to promote a culture of anti-money laundering compliance? A. They should include compliance with AML procedures as condition of employment B. They should attend all training sessions with front-line employment C. They should have close ties with the independent auditors of the AML program D. They should base employee compensation on the amount of suspicious activity they detect - ✔✔A What is the result of an increased awareness of the potential for gatekeepers to assist in money laundering in recent years? A. The IMF has raised the profile of gatekeepers, requiring that countries regulate them B. Lawyers who represent money launderers can more easily be prosecuted C. Accountants are no longer considered gatekeepers, since they are not permitted to set up companies or trusts D. The FATF recommendations cover lawyers performing financial transactions - ✔✔B Which three are principles found in the document "Principles of information Exchange between Financial Intelligence Units (FIUs)"? A. The exchange of information between FIUs should take place as informally and as rapidly as possible and with no prerequisites, while guaranteeing protection of privacy and confidentiality of the shared data B. Differences in the definition of offenses that fall under the competence of FIUs should be before free exchange of information takes place C. The Egmont principle of free exchange of information at the FIU level should be possible on the basis of reciprocity, including spontaneous exchange D. It should be possible for communication between FIUs to take place directly and without intermediaries - ✔✔A,C,D What are three risk factors a financial institution should examine with regard to a proposed new product? A. The complexity of the product B. The need to verify the identification of the customer C. Whether the product is easily transferable D. Whether other financial institutions are marketing the product - ✔✔A,B,C