CAMS7 by ACAMS Valid Free Exam Practice Test

Question 1

A compliance officer reviews an alert involving unusually high cryptocurrency transfers. What is the MOST important consideration?

A. Whether blockchain technology eliminates AML risk B. Whether the customer prefers mobile applications C. Whether customer activity aligns with expected profile and source of wealth D. Whether the transfers occur during business hours

Correct Answer: C

Explanation: Only visible for ExamsLabs members. You can sign-up / login (it's free).

Question 2

An EU Trust and Company Service Provider analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?

A. Inter-company loans from the holding company to the subsidiary company to finance the shipment of machinery B. The payment of company secretarial retainer fees to a foreign company in a tax-efficient jurisdiction C. The payment of virtual offices services overseas D. The payment of consultancy fees to unrelated companies and service providers established in a foreign jurisdiction

Correct Answer: B

Question 3

A customer from a high-risk jurisdiction uses complex trusts and nominees during onboarding.
What should the institution do?

A. Automatically reject the customer B. Permit anonymous transactions temporarily C. Apply enhanced due diligence measures D. Ignore ownership complexity if funds are substantial

Correct Answer: C

Explanation: Only visible for ExamsLabs members. You can sign-up / login (it's free).

Question 4

A company is rapidly expanding into several international markets, including jurisdictions considered high risk in terms of regulatory oversight. The board has requested the Money Laundering Reporting Officer (MLRO) to review and adjust the company's anti-financial crime (AFC) compliance framework to align with the evolving regulatory landscape and expansion strategy. During this process, the MLRO identifies vulnerabilities, particularly in markets with AML deficiencies, and updates the framework to mitigate these risks. Which element of the AFC compliance program does this process describe?

A. Transaction monitoring B. Governance arrangements C. Risk assessment D. Training and awareness

Correct Answer: C

Explanation: Only visible for ExamsLabs members. You can sign-up / login (it's free).

Question 5

Which of the following are common indicators of possible money laundering within the securities industry? (Select Two.)

A. Engaging in transactions involving nominees or third parties B. Using brokerage accounts like deposit accounts C. Receiving securities into an existing brokerage account following the death of a spouse D. Allowing fixed income securities to mature

Correct Answer: A,B

Question 6

The Wolfsberg Group's AML Principles on Private Banking:

A. Advise banks to accept only those clients whose source of funds and beneficial ownership is understood B. Assist financial institutions conducting business in jurisdictions with high data privacy standards in working with industries susceptible to money laundering C. Establish rules for private bankers on how to deal with politically exposed persons (PEPs) and persons residing in high-risk countries D. Require banks to better manage reputational risk and protect the privacy of wealthy clients

Correct Answer: A

Question 7

According to Basel Committee guidelines, which level of the organization should determine whether or not to enter business relationships with higher risk customers?

A. Senior management B. Account opening staff C. Middle management D. First-level management

Correct Answer: A

Question 8

In which of the following situations would it be most crucial for the designated AML compliance officer of a company to perform a complete review of the company's AML program, including identifying the risks and commensurate controls?

A. A high-profile money laundering case involving another industry is publicized B. The company is merging with or acquiring another entity C. Extensive AML legislation is proposed by a legislative body in the company's jurisdiction D. An external audit highlights several deficiencies

Correct Answer: B

Question 9

Which statement about terrorist financing is MOST accurate?

A. It only occurs through cash smuggling B. It always involves large transaction amounts C. Legitimate funds can also finance terrorism D. It is unrelated to sanctions compliance

Correct Answer: C

Explanation: Only visible for ExamsLabs members. You can sign-up / login (it's free).

Question 10

Which control would be most effective as part of a risk-based approach (RBA) to managing AML/CFT risk for a bank established in the EU that also has a branch in a high-risk third country outside of the EU?

A. Automatically apply enhanced customer due diligence measures to all customers in the high-risk third-country branch regardless of risk level B. Monitor every cross-border transaction in real time, flagging all for enhanced scrutiny due to the country risk level C. Fully rely on central beneficial owner registry records in the high-risk third country to determine the ultimate beneficial owners of all customers D. Apply tailored due diligence measures, based on the level of risk posed by each customer following risk assessment

Correct Answer: D

Explanation: Only visible for ExamsLabs members. You can sign-up / login (it's free).

ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) - CAMS7 Exam Practice Test