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AML Certification CAMS Exam Dumps

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Total 229 questions
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Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Questions and Answers

Question 21

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)

Options:

A.

The agent requested a disposal of assets at a lower price than recently acquired.

B.

The assets acquired through an auction were put in the name of an offshore company

C.

The agent acted on behalf of an individual residing in a country which is on the EU's list of high-risk jurisdictions

D.

The power of attorney was issued by a law firm in a different EU country from where the transaction took place.

Question 22

Money services businesses (MSBs), payment service providers, and e-commerce platforms usually have a high volume of daily transactions.

What are the risks associated with these types of businesses? (Choose two.)

Options:

A.

These businesses are all cash intensive, increasing the risk of financial crime

B.

KYC challenges arise because e-commerce platforms face global customers making customer due diligence complex and resource intensive

C.

These businesses are highly regulated and therefore have no reason to be non-compliant as this would put them at risk of sanctions and fines

D.

Criminals can make use of identify fraud to fulfill KYC processes for layering purposes

E.

The settlement systems of these businesses are not sophisticated enough to cope with the high transaction volume

Question 23

Public-private partnerships (PPPs) that involve the sharing of information between law enforcement authorities. Financial Intelligence Units (FIUs), and the private sector are established to: (Choose two.)

Options:

A.

create a common database of key information and share analysis of suspicious activities with FATF

B.

exchange strategic information between FlUs and obliged entities

C.

exchange strategic information between financial institutions

D.

exchange operational information between public authorities and obliged entities

Question 24

Why is the prevention of financial crime so important?

Options:

A.

Financial crime does enormous damage to society, undermining market integrity and consumers' and market participants' confidence

B.

Financial crime risk incidents always result in fines and losses for the financial firm

C.

Financial crime prevention processes make the onboarding process for clients unnecessarily burdensome and complex but create work

D.

Financial crime prevention is important as it reduces costs and improves customer services.

Page: 6 / 17
Total 229 questions
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