CAMS Practice Exam Questions and Answers

A.  

PPPs improve financial crime detection and prevention by sharing intelligence between banks and law enforcement.

B.  

PPPs help banks reduce compliance costs by automating information sharing.

C.  

PPPs allow banks to manage their own suspicious activity report (SAR) filing process without the need to involve the Financial Intelligence Unit (FIU).

D.  

PPPs maximize the efficiency of the bank's compliance program by providing real-time intelligence from law enforcement.

A.  

Periodic and ad hoc cooperation with the legal team to appropriately investigate and monitor the transactions of subjects of subpoenas or government inquiries

B.  

Periodic review of client profiles to ensure that the most up-to-date information is on file for high-risk clients in line with the bank's internal policies and procedures

C.  

Periodic review of suspicious activity reports (SARs) filed with FinCEN to determine whether any should be withdrawn

D.  

Periodic review of the transaction monitoring scenarios and their productivity to ensure that appropriate AML typologies are reflected

A.  

Concealing sources of funds

B.  

Allowing for third-party custody safekeeping of funds

C.  

Adding a layer of anonymity to transactions

D.  

Concealing true legal and beneficial owners

E.  

Establishing escrow accounts for real estate transactions

A.  

Appointing individuals to serve in official capacities of the company

B.  

Annual maintenance services

C.  

Provision of a local business address

D.  

Company incorporation services

A.  

Ensure that the second line reviews, monitors, and escalates risk-related issues as needed to senior management while maintaining independent oversight from the third line

B.  

Have senior management handle risk-related issues directly when possible because they are ultimately responsible for the organisation's overall risk management strategy

C.  

Delegate some risk-related issues to the first line to avoid overwhelming the second line and to ensure operational efficiency

D.  

Assign risk-related oversight duties to the third line to provide an independent review and address issues more effectively by avoiding conflicts of interest in the first and second lines

A.  

Mandatory participation in all regulatory inspections

B.  

Mandatory attendance and review of alt financial crime trainings

C.  

Setting clear criteria for escalations to senior management

D.  

Setting tone from the top

A.  

Guaranteeing 100% accuracy in regulatory compliance across all jurisdictions

B.  

Improving customer satisfaction by offering personalized recommendations

C.  

Reducing identity theft effectively

D.  

Providing reliable customer authentication to enhance trust

E.  

Decreasing the time required for customer authentication

A.  

Prioritizing resources towards lower-risk areas to reduce workload

B.  

Regularly reassessing risks to adjust resource allocation

C.  

Allocating more resources to areas with higher financial crime risk

D.  

Providing equal resources to all departments to maintain consistency

E.  

Using a fixed resource allocation plan without adjustments

A.  

difficulty in tracking the originator, recipient, and source of transactions.

B.  

remote verification of identity by third-party program managers.

C.  

heavy usage by senior political figures.

D.  

informal networks used for cross-border transactions outside of the formal banking system.

E.  

heightened risks of returned transactions.

A.  

generative copilots.

B.  

small language models.

C.  

privacy coins.

D.  

crypto-mixers.