Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition)
Last Update Nov 1, 2025
Total Questions : 313
We are offering FREE CAMS ACAMS exam questions. All you do is to just go and sign up. Give your details, prepare CAMS free exam questions and then go for complete pool of Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) test questions that will help you more.
Which of the following are potential financial crime-related red flags when obtaining client data? (Choose three.)
The owner of a real estate investment company deposits multiple cashier's checks that were bought using cash over a three-month period, from the sale of two apartments. This account also receives several electronic transfers from other financial institutions for US$10,000 each.
What activity is considered suspicious of money laundering?
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?
What key element contributes to the effectiveness of AML training programs'?
The compliance officer at a casino in Taiwan discovers that the casino received multiple cash deposits from a customer just below the Large-Amount Transaction Report (LTR) limit on consecutive days. The customer used three different betting accounts.
What is the appropriate next step?
The supply of goods and services can be vulnerable to corruption within a company, particularly the solicitation and receipt of bribes and kickbacks, because: (Choose two.)
What should a financial institution (FI) do in response to a formal law enforcement request to produce documents?
Assessing the money laundering risk related to a product within the financial sector includes assessing the: (Select Two.)
At a high level, the risk assessment process involves identifying and rating the inherent risks associated with customers, products, countries, and delivery channels, and then:
The goal of the Egmont Group of Financial Intelligence Units (FIUs) is to provide a forum for FIUs to: (Select Three.)
A financial institution's (FI's) policy is to apply enhanced due diligence (EDD) for every new client to ensure the effectiveness of the program.
How should a consultant advise the FI's management team?
According to the Financial Action Task Force (FATF) report on terrorism financing, charities and nonprofit organizations are often vulnerable to terrorist financing because they: (Select Two.)
Which techniques are most commonly used in a rules-based approach to transaction monitoring for detecting suspicious activities? (Choose two.)
Reference data screening includes the screening of which types of datasets? (Select Two.)
Which of the following AML/CFT arrangements should a bank have in place at minimum before opening for business? (Choose three.)
How should risk-related issues be addressed to ensure the effectiveness of the three lines of defense model?
Which suspicious activity may be the strongest indicator of money laundering through a casino?
Using artificial intelligence (Al) and machine learning-based techniques tn adverse media screening can: (Choose three.)
Which of the following are key financial crime risks associated with real estate companies? (Choose four.)
In the context of terrorist financing, which of the following are potential indicators of the abuse of non-profit organizations (NPOs)? (Choose two.)
According to PinCEN. when a financial institution (PI) identities a suspicious activity that necessitates suspicious activity report (SAR) filing, the SAR supporting documentation should (Select Two.)
A bank received a subpoena regarding one of its clients. The financial intelligence unit of the bank should review the subpoena and:
A large international bank is conducting a comprehensive review of its risk management framework to ensure it effectively addresses various financial crime risks, including AML, CFT,
sanctions, fraud, anti-bribery and corruption (ABC), and tax evasion.
The bank’s compliance team is responsible for evaluating the current risk assessment processes, identifying potential gaps, and recommending enhancements to better mitigate these risks. During this review, the team needs to consider the different types of risk assessments and how to integrate findings into the overall risk management strategy.
Which approach should the compliance team prioritize to enhance the bank’s ability to identify, assess, and mitigate the identified risks?
How can public-private partnerships (PPPs) foster collaboration in the fight against financial crime? (Choose two.)
Which services provided by an accounting firm could be considered as higher risk from a financial crime perspective? (Choose three.)
Which statements regarding using network analysis tools to determine links to criminality are true? (Choose three.)
Which of the following measures can help maintain the independence of BSA/AML compliance staff to ensure effective compliance controls?
A law enforcement agency submits several requests to a financial institution.
Which request is legitimate and requires the bank to respond?
A multinational corporation is considering expanding into a new market with a history of political instability and corruption.
Which strategy would be most effective in mitigating reputational risk from a financial crime perspective associated with such an expansion?
Which of the following is a broader risk specific to casinos and gambling?
Which techniques would be most efficient for a complex investigation of unusual patterns of activity involving multiple businesses, triggered by an automated monitoring system alert? (Select Two.)
Which of the following are best practices to raise awareness and train staff regarding the risks related to financial crime? (Select Three.)
Which of the following statements is true regarding the 2012 Financial Action Task Force (FATF) 40 Recommendations and'or 11 Immediate Outcomes?
According to Basel Committee guidelines, which level of the organization should determine whether or not to enter business relationships with higher risk customers?
When a multinational organization develops its anti-financial crime (AFC) program, what is the most important consideration for ensuring compliance across different jurisdictions?
A law enforcement action alleged that on several trading days over the course of two months, defendants engaged in a series of copper gold, crude oil. and natural gas futures transactions on an electronic trading platform One defendant repeatedly bought future contracts at low prices from the other, and then immediately sold them back at higher prices. As a result, one defendant effectively pocketed the same amount as the other lost even though there were no changes in the open positions held by either defendant.
What is a name for this typology?
An agent of a wealthy individual residing in Country A, which is on the EU list of high-risk third jurisdictions, approaches a notary in Country B, which is in the EU. The agent wants to complete a disposal of assets recently acquired at auction by the wealthy individual through an offshore company. The agent also has a power of attorney to act on behalf of the offshore company issued by a respectable law firm from Country C, which is also in the EU. The agent asks the notary to proceed with the disposal as quickly as possible without paying any specific attention to related costs or taxes to be paid as a result of this transaction. The notary notices the intended transfer price is significantly lower than the one recorded at auction, but the agent does not want to discuss this matter and claims that it is not covered by the power of attorney.
Which red flags should the notary consider? (Select Two)
Which of the following best describes the use of fuzzy logic in customer screening systems?
A compliance analyst has recently investigated an account where money was deposited in amounts below the reporting limit and almost entirely withdrawn in a foreign country.
Which type of money laundering is the compliance analyst potentially identifying?
Interactions between the compliance department and other functions or departments within an organization contribute to making the anti-financial crime (AFC) compliance program more robust by addressing specific risk areas.
Which departments play a crucial role in enhancing the AFC compliance program of an organization? (Select Two.)
Arecruitment manager in the human resources departmentof a bank hasshortlisted a candidate for the position of relationship manager in its private banking division.
Thebank’s compliance policyrequiresproper background checksto protect againstfraud and money laundering risks.
Whichresourceswould bemost usefulfor identifying potential negative information regarding the shortlisted candidate? (Select Three.)
An employee at a financial institution (Fl) suspects that one of their co-workers is involved in a financial investment scam syndicate. Which step should be taken next by the employee who has the suspicion?
Which risks are specifically associated with the misuse of gaming accounts in financial crime? (Choose three.)
Which of the following processes or tools contribute to AML compliance despite being seemingly unrelated? (Choose two.)
A US bank recently received a regulatory order to remediate its AML programs, which included several violations of law.
What degree of accountability is it possible for the bank's senior management and employees to face?
The manager of a bank's KYC team discovers that a high-risk customer's activity was not reviewed last quarter as the bank's internal schedule required.
What should the KYC team manager do?
Which of the following are important AML controls for a compliance manager of a regulated asset management company in the European Union to implement? (Select Two.)
A financial institution's US Branch receives a subpoena from law enforcement requesting detailed records of a customer's account activity. The customer is part of an ongoing investigation into a money laundering operation. At the same time, the institution has received a FinCEN 314(b) information-sharing request from another bank seeking details on transactions linked to the same customer. The compliance team is tasked with responding to both the subpoena and the FinCEN 314(b) request.
What should the compliance officer prioritize in responding to these requests while ensuring that all legal and regulatory obligations are met?
The new KYC lead at a bank is particularly focused on enhancing the risk management component of its KYC program and refers to the Basel Committee's customer due diligence (CDD) principles.
Which of the following describe key improvements to a KYC program established in the Basel Committee's CDD principles? (Select Two.)
According to the Financial Action Task Force's (FATF's) "Guidance for a Risk-Based Approach Life Insurance Sector," which of the following are money laundering red flags relating to the involvement of a third party in a life insurance product? (Select Two.)
A bank is completing a periodic KYC profile review for a customer that is a small digital marketing company based in New York City.
Which of the following would be a red flag?
Common risks and red flags associated with trade finance clients may include: (Choose four.)
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 key advantage of privacy enhancing technologies (PETs) in anti-money laundering is that they offer:
Which changes at a financial institution (FI) should trigger an enterprise-wide reassessment of its inherent AML risk exposure? (Select Three.)
There are three types of factors that can be used to authenticate someone ownership, knowledge, and inherent factors.
Which of the following factors falls under inherent factors?
A financial institution is designing an enterprise-wide risk assessment (EWRA).
According to the guidance issued by the Wolfsberg Group regarding a risk-based approach to identifying and managing money laundering risks, an effective approach should:
Which of the following controls is typically implemented at customer onboarding to mitigate the risk of onboarding high-risk customers?
Which of the following laws or regulations can impact the application of AML/CFT programs and require financial institutions (r" Is) to balance multiple compliance requirements?
When assessing and managing money laundering risks while operating in foreign jurisdictions different from that of the head office, an effective AML monitoring program should:
The relationship manager in the corporate banking department at a bank is required to take specialized AML training tailored to the risks the department is most likely to encounter.
Which types of content are most appropriate for this training? (Select Two.)
Which statement best describes a key money laundering risk associated with virtual asset service providers (VASPs), cryptoassets, and related products?
Country A's anti-corruption authority has been investigating the movement of potential proceeds of bribery and corruption to Country B and is now preparing to take the case to a local court.
Which method of obtaining the required evidence to prosecute the case would be most effective?
Which of the following are considered best practices for effective AML/CFT training programs? (Select Three.)
Which money laundering risks are posed by the misuse of trust and asset management services? (Select Three.)
An institution is looking to alter an existing threshold-based monitoring scenario because it is generating too many alerts that do not yield suspicious activity reports.
Documentation submitted to the relevant committee for supporting this proposal should include details on: (Choose three.)
Which of the following is a critical consideration for private sector firms when sharing data and intelligence to combat financial crime?
The transaction monitoring system of a bank generated an alert for a car wash client. After making large cash deposits, the client orders international wire transfers.
Which additional circumstances would make the case more suspicious?
In a large US bank, an individual leads a team in charge of overseeing the governance and effectiveness of the bank's transaction monitoring approach.
Which strategies should the team implement? (Select Two.)
Which benefits are most commonly associated with transitioning from a rules-based approach to artificial intelligence (AI) and machine learning-based tools in transaction monitoring? (Choose three.)
A key factor in the independence of an AML audit is that the auditor should.
Common risks associated with cryptocurrency and convertible virtual currencies include: (Choose three.)
Which ancillary departments or operational areas can play an essential role in supporting a larger organization's Anti-Money Laundering and Economic Sanctions compliance program? (Choose three.)
An AML analyst at a financial institution is examining an alert generated by the automated transaction monitoring system to determine whether the alert should be escalated to the AML unit for further investigation or whether it can be archived as a false positive.
Which action might be reasonable for the AML analyst to take?
The degree of attraction that a company holds to criminal organizations is influenced by the (Select Two.)
Which of the below would be relevant money laundering red flags for life insurance companies? (Select Two.)
Which key metric would provide the most valuable data to the senior management of a financial institution about the effectiveness of its AML controls?
An AML compliance officer receives an independent audit report with a number of findings.
An appropriate response to the report would include:
A high volume of incoming wire transfers generates an alert about a client. The funds are immediately debited by cash withdrawals and outgoing wire transfers.
Which information should be reviewed first to investigate this alert/case?
What are the primary advantages of using open-source tools in financial crime investigations? (Choose two.)
When the Financial Action Task Force (FATF) places a jurisdiction on the list of "jurisdictions under increased monitoring," also known as the "grey list," the jurisdiction:
A financial institution is conducting an enterprise-wide risk assessment (EWRA) and has identified a high inherent risk of money laundering associated with its private banking division due to the clientele's high net worth and complex financial structures. However, the institution has implemented robust customer due diligence (CDD) and enhanced due diligence (EDD) procedures, along with sophisticated transaction monitoring systems.
How would these controls impact the assessment of residual risk?
Which risk factors are associated with acquiring and servicing the banking activities of customers considered higher risk for financial crime activities? (Select Three.)
TESTED 01 Nov 2025
