CAMS Study Guide & CAMS Guide Torrent & CAMS Practice Test
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ACAMS CAMS Certification is an essential credential for professionals working in the field of AML/CFT. CAMS exam assesses the candidate's understanding of the latest international AML/CFT principles, standards, and practices and provides professionals with several benefits, including enhanced credibility, marketability, and earning potential. Certified Anti-Money Laundering Specialists (the 6th edition) certification also provides professionals with access to a network of peers and resources, making it an invaluable investment in one's career.
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ACAMS CAMS (Certified Anti-Money Laundering Specialists) Certification Exam is a globally recognized certification exam designed for professionals in the anti-money laundering (AML) industry. Certified Anti-Money Laundering Specialists (the 6th edition) certification exam is a rigorous and comprehensive assessment that measures an individual’s knowledge and skills in the AML field. Certified Anti-Money Laundering Specialists (the 6th edition) certification is valuable for AML professionals looking to advance their careers and enhance their professional credibility.
The CAMS Certification is increasingly becoming a requirement for professionals who work in the financial services industry, including bankers, compliance officers, auditors, and regulators. Certified Anti-Money Laundering Specialists (the 6th edition) certification program is designed to help these professionals stay up-to-date with the latest AML regulations and best practices. It also provides a way for individuals to demonstrate their expertise and commitment to AML compliance to employers and clients.
ACAMS Certified Anti-Money Laundering Specialists (the 6th edition) Sample Questions (Q512-Q517):
NEW QUESTION # 512
Combating the Financing of Terrorism (CFT)]
A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?
- A. The provision of payable through accounts
- B. The provision of remote check deposit services
- C. The provision of cash services
- D. The provision of brokerage services
Answer: C
Explanation:
Retail banks typically have a high inherent risk of money laundering due to their provision of cash services.
This is because cash is a preferred medium of exchange for criminals and terrorists, and retail banks provide a convenient way for them to move large sums of money without detection. Retail banks are also vulnerable to money laundering through the use of false identities and other deceptive practices. (CAMS Manual, 6th Edition, Page 8).
NEW QUESTION # 513
Which methods are typically used to launder money using insurance companies? (Choose two.)
- A. The policy holder uses an offshore company to pay the insurance installments.
- B. The policy holder overpays the policy and moves the funds out of the policy despite paying early withdrawal penalties.
- C. The policy holder is strongly interested in how many costs are incurred when taking out an insurance policy.
- D. The policy holder enters a sibling as a beneficiary of the insurance policy rather than themselves.
- E. The policy holder purchases a bond and redeems it at a discount prior to its full term.
Answer: A,B
Explanation:
The methods that are typically used to launder money using insurance companies are:
* The policy holder overpays the policy and moves the funds out of the policy despite paying early withdrawal penalties. This method involves placing large amounts of illicit funds into an insurance policy, usually a life insurance or an annuity, and then requesting a refund or a surrender of the policy.
The policy holder may incur some fees or penalties for the early withdrawal, but they will receive a check or a wire transfer from the insurance company that appears to be a legitimate source of income.
This method allows the launderer to layer and integrate the funds into the financial system.
* The policy holder uses an offshore company to pay the insurance installments. This method involves setting up a shell company or a trust in a jurisdiction with low or no tax and weak or no anti-money laundering regulations. The launderer then uses the offshore entity to purchase an insurance policy or a bond from a reputable insurance company. The offshore entity pays the premiums or the installments using the illicit funds, and the launderer can claim the benefits or the returns from the policy or the bond as clean money. This method allows the launderer to hide the true ownership and origin of the funds.
The other options are not typical methods of money laundering using insurance companies, because:
* The policy holder enters a sibling as a beneficiary of the insurance policy rather than themselves. This method does not involve any movement or disguise of the illicit funds, and it does not generate any income or return for the launderer. The beneficiary of the policy will only receive the payout upon the death of the policy holder, and the insurance company will conduct due diligence on the beneficiary before releasing the funds.
* The policy holder purchases a bond and redeems it at a discount prior to its full term. This method does not make sense for a money launderer, because it involves losing money rather than gaining money. A bond is a fixed-income instrument that pays a regular interest and a principal amount at maturity. If the bond is redeemed before its full term, the bond holder will receive less than the face value of the bond, and will also forfeit the future interest payments. This method does not help the launderer to conceal or legitimize the source of the funds.
* The policy holder is strongly interested in how many costs are incurred when taking out an insurance policy. This method does not indicate any money laundering activity, but rather a prudent and rational behavior of a potential customer. The policy holder may want to compare different insurance products and providers, and to understand the fees, charges, commissions, and taxes associated with the policy.
This method does not involve any placement, layering, or integration of the illicit funds.
References:
* ACAMS Study Guide for the CAMS Certification Examination - 6th Edition, Chapter 1: Risks and Methods of Money Laundering and Terrorism Financing, Section 1.2: Methods of Money Laundering, Subsection 1.2.5: Insurance Products, pp. 19-20
* AML in Insurance: How to Detect & Combat Money Laundering, Section: Common Money Laundering Methods in Insurance, Paragraphs 1-3
* Discuss Acams CAMS Exam Topic 1 Question 43, Suggested Answer by Deeanna at May 04, 2022, 10:
16 PM
NEW QUESTION # 514
Which red flag indicates high potential for money laundering in a real estate purchase?
- A. The purchaser had a previous bankruptcy
- B. The purchaser is a nominee
- C. The purchaser is not a resident where the property is located
- D. The purchaser owns a cash intensive business
Answer: B
Explanation:
The purchaser being a nominee is a red flag that indicates high potential for money laundering in a real estate purchase. A nominee is a person or entity that acts on behalf of another person or entity, usually to conceal the identity or beneficial ownership of the real owner. Money launderers may use nominees to purchase real estate with illicit funds, and then transfer the property to the real owner or sell it for a profit. This way, they can obscure the source and ownership of the funds, and integrate them into the legitimate economy12.
:
ACAMS, CAMS Examination Study Guide, 6th Edition, Chapter 3, pp. 77-78
FATF, Money Laundering and Terrorist Financing through the Real Estate Sector, June 20073, pp. 19-20
NEW QUESTION # 515
What are two aspects of the Wolfsberg Anti-Money Laundering (AML) Principles for Correspondent Banking? (Choose two.)
- A. Factors such as politically exposed person involvement and downstream (nested) correspondents increase the risk inherent in a correspondent relationship.
- B. At least one person, aside from the person sponsoring the relationship, should approve the correspondent relationship.
- C. Correspondent banking is an inherently high risk business and all correspondent bank relationships should be reviewed on an annual basis.
- D. An Institution may assign a low risk rating to a correspondent bank located in a jurisdiction deemed to have an adequate AML environment (e.g., Financial Action Task Force member country) without needing to consider other factors
Answer: A,B
Explanation:
According to the Wolfsberg Anti-Money Laundering (AML) Principles for Correspondent Banking, one of the key aspects of establishing and maintaining a correspondent relationship is to conduct a risk-based due diligence on the respondent bank, which includes obtaining approval from at least one person other than the person sponsoring the relationship12. This is to ensure that the correspondent bank has a clear understanding of the nature, purpose, and expected activity of the relationship, as well as the respondent bank's ownership, governance, AML policies, and customer base12.
Another aspect of the Wolfsberg AML Principles is to recognize and assess the factors that may increase the risk inherent in a correspondent relationship, such as the involvement of politically exposed persons (PEPs), the presence of downstream (nested) correspondents, the geographic location of the respondent bank and its customers, and the types of products and services offered by the respondent bank12. These factors may require enhanced due diligence, monitoring, and reporting of suspicious activities by the correspondent bank, as well as the application of appropriate risk mitigation measures12.
References:
* 1: Wolfsberg Correspondent Banking Principles 20221
* 2: Wolfsberg Anti-Money Laundering Principles for Correspondent Banking2 Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/wolfsberg-standards/8.%
20Wolfsberg-Correspondent-Banking-Principles-2014.pdf
NEW QUESTION # 516
What are two reasons physical certificates present a money laundering risk to broker-dealers? (Choose two.)
- A. The trade information on a physical certificate can be easily altered
- B. There is little information readily available to the broker confirming the source of the funds
- C. Physical certificates may be provided to nominees for deposit or settled in off-market transactions
- D. Physical certificates do not expire and may be held by the owner for perpetuity
Answer: A,C
Explanation:
Physical certificates are documents that represent ownership of securities, such as stocks or bonds, that are issued by a company or a government. Physical certificates present a money laundering risk to broker-dealers for two reasons:
The trade information on a physical certificate can be easily altered, such as the name of the owner, the date of issuance, or the number of shares. This can facilitate the concealment or falsification of the origin, ownership, or value of the securities, and enable the laundering of illicit funds through the purchase or sale of the securities.
Physical certificates may be provided to nominees for deposit or settled in off-market transactions, such as private placements, bearer bonds, or direct transfers. This can bypass the normal reporting or recordkeeping requirements of the broker-dealer, and avoid the scrutiny or verification of the identity, source of funds, or beneficial ownership of the securities.
References:
Two Reasons Physical Certificates Pose Money Laundering Risks to Broker ...
CAMS Certifications: How to Get CAMS Certified | ACAMS
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NEW QUESTION # 517
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