CAMS Exam UPDATED ACTUAL Exam Questions and CORRECT Answers
10 views 0 purchase
Course
CAMS - Certified Anti-Money Laundering Specialist
Institution
CAMS - Certified Anti-Money Laundering Specialist
CAMS Exam UPDATED ACTUAL Exam
Questions and CORRECT Answers
What is money laundering? - CORRECT ANSWER- taking CRIMINAL proceeds and
disguising their illegal sources to USE the funds for LEGAL or ILLEGAL acts.
Give an example of the SECOND stage of money laundering. - CORRECT ANSWER-
Layerin...
CAMS Exam UPDATED ACTUAL Exam
Questions and CORRECT Answers
What is money laundering? - CORRECT ANSWER✔✔- taking CRIMINAL proceeds and
disguising their illegal sources to USE the funds for LEGAL or ILLEGAL acts.
Give an example of the SECOND stage of money laundering. - CORRECT ANSWER✔✔-
Layering - Electronically moving funds between countries; moving funds between financial
institutions; and converting cash placed into the system into monetary instruments.
Give an example of the THIRD stage of money laundering. - CORRECT ANSWER✔✔-
Integration - Purchasing luxury assets; and investing in business enterprises.
Give an example of the FIRST stage of money laundering. - CORRECT ANSWER✔✔-
Placement - Co-mingling ILLEGITIMATE and LEGITIMATE funds; foreign exchange
transactions with illegal funds; and depositing small amounts of cash into multiple accounts.
What does the (Sally Yates - Then-Deputy Attorney General of the Department of Justice)
Yates memo say? - CORRECT ANSWER✔✔- It reminds prosecutors that criminal and civil
corporate misconduct investigations should also focus on the individuals who perpetrated the
wrongdoing.
What are some indicators of money laundering using electronic funds transfers? - CORRECT
ANSWER✔✔- Funds transfers to or from a financial secrecy haven; large, incoming fund
transfers from a foreign client with little or no explanation or apparent reason; and fund
transfers that have no apparent link to legitimate business.
What is REMOTE DEPOSIT CAPTURE and what risk is associated with it? - CORRECT
ANSWER✔✔- A product offered by banks that allows customers to SCAN A CHECK AND
TRANSMIT an electronic image to the bank FOR DEPOSIT. Associated risks include
ENABLING a money launderer to deposit checks without visiting the bank thus avoiding
detection.
What are some of the money laundering RISKS pertaining to the use of Payable Through
Accounts (PTAs)? - CORRECT ANSWER✔✔- Where foreign institutions licensed in
,offshore centers, each bank having its own supervision; where the respondent bank (the
foreign bank) fails to conduct adequate customer due diligence; and where the sub-account
holders have currency deposit and withdrawal privileges.
What is a money laundering RISK pertaining to the use of CONCENTRATION
ACCOUNTS? - CORRECT ANSWER✔✔- The fact that CUSTOMER IDENTIFYING
INFORMATION MAY NOT BE INCLUDED, making the audit trail difficult or impossible
to follow.
What is a PEP or Politically Exposed Person, and what is the PRIMARY RISK in dealing
with a PEP? - CORRECT ANSWER✔✔- A person who has or has had a prominent
government or quasi-public position in a country. The PRIMARY RISK is that THEIR
SOURCE OF FUNDS MAY BE FROM CORRUPTION.
What is structuring? - CORRECT ANSWER✔✔- Taking a large cash deposit and breaking it
into smaller amounts deposited into separate banks, accounts or on separate days to avoid
currency transaction reports.
When are CREDIT CARDS most likely used for money laundering and give an example of
money laundering using credit cards? - CORRECT ANSWER✔✔- NOT likely INITIAL
PLACEMENT. More LIKELY in LAYERING or INTEGRATION. For EXAMPLE,
OVERPAYING on the BALANCE and THEN ASKING FOR A REFUND. Receiving a
check from a reputable company makes the funds appear legitimate.
What are some of the risks posed by Third-Party Payment Processors (TPPPs)? - CORRECT
ANSWER✔✔- Multiple financial institution relationships whereby their suspicious
ACTIVITY CANNOT BE Entirely SEEN by one institution; engaging in ACH transactions
from overseas whereby the suspicious TRANSACTIONS GET HIDDEN by the large number
of other transactions they engage in; and the possibility of higher than average return rates
stemming from unauthorized transactions.
What are some ways MONEY SERVICES BUSINESSES can be used for money laundering?
- CORRECT ANSWER✔✔- Cashing checks without obtaining adequate proof of identity;
failing to file Currency Transaction Reports when required; and transmitting funds overseas
without sufficient due diligence.
,What are some of the money laundering risks associated with securities broker-dealers? -
CORRECT ANSWER✔✔- Its international nature, speed of transactions, ease of converting
holdings into cash without significant loss of principal; large volume of wires; competitive,
commission-driven environment; practice of maintaining securities accounts in the name of
nominees or trusts; and weak AML programs.
What are some red flags associated with casinos and gambling? - CORRECT ANSWER✔✔-
Paying off associated debts in cash just under the reporting requirements; purchasing chips,
but engaging in minimal gambling and then cashing the chips back in; using the gambling
house for banking-like financial services, including wiring funds overseas; betting on both
"red" and "black" spaces in roulette; and purchasing chips with cash just under the reporting
requirements.
What were FATF's KEY findings its report on "Money Laundering/Terrorist Financing Risks
and Vulnerabilities Associated With Gold," issued in July, 2015? - CORRECT ANSWER✔✔-
It IS RELATIVELY COMPACT AND EASY TO TRANSPORT; it is LUCRATIVE AND
HOLDS ITS VALUE regardless of form.
List ways in which a TRAVEL AGENCY could be used to launder money. - CORRECT
ANSWER✔✔- Making expensive purchases and then ASKING FOR A REFUND; purchases
made with multiple wires just UNDER THE REPORTING THRESHOLD; and CREATING
FALSE BOOKINGS through tour operator networks to justify significant payments from
foreign travel groups.
Name various ways that a GATEKEEPER - an attorney, notary, accountant or auditor could
assist in a money laundering scheme. - CORRECT ANSWER✔✔- CREATING and
MANAGING corporate vehicles or other COMPLEX LEGAL ARRANGEMENTS; buying
or selling property as a COVER for transfers of illegal funds; PERFORMING financial
TRANSACTIONS, including making deposits, withdrawing funds, engaging in foreign
exchange operations, buying or selling stock and sending international wires; and SETTING
UP or MANAGING a charity.
What is the primary concern with regard to the use of GATEKEEPERS? - CORRECT
ANSWER✔✔- Attorneys, notaries, accountants and auditors CAN BE USED TO
ENHANCE SECRECY and keep the beneficial account owner or transaction hidden.
List reasons why REAL ESTATE can be an attractive method of money laundering,
according to the 2015 report by the Australian Transaction Reports and Analysis Centre
(AUSTRAC). - CORRECT ANSWER✔✔- It can be purchased with CASH; the owner can
, be DISGUISED; it is a relatively STABLE AND RELIABLE investment; and VALUE CAN
BE INCREASED through renovations and improvements.
What are TWO of the most COMMON money laundering techniques involved
with Trade-Based Money Laundering (TBML)? - CORRECT ANSWER✔✔- Over and under
invoicing
In summary form, how does the Black Market Peso Exchange (BMPE) work in
laundering money? - CORRECT ANSWER✔✔- A trafficker SELLS DRUGS FOR
DOLLARS in the US and - to avoid smuggling dollars back to Mexico - the trafficker GIVES
THE PROCEEDS TO A "PESO BROKER." The broker finds businesses in Mexico that want
to buy goods in the US. Then the broker buys the US goods with US dollars and has them
shipped to Mexico. The Mexcican business pays the broker in Mexico in pesos and the broker
gives the pesos - minus a fee - to the traffickers.
What are some of the money laundering risks of pre-paid BANK CARDS? - CORRECT
ANSWER✔✔- ANONYMOUS holders and funding; HIGH value limits; GLOBAL access to
cash through ATMs; LAXED offshore jurisdictions issuing the cards; and they are a
SUBSTITUTE for bulk-cash smuggling.
What are some of the risks listed by FATF in its 2010 report titled "Guidance For A Risk-
Based Approach to Prepaid Cards, Mobile Payments And Internet-Based Payment Services"?
- CORRECT ANSWER✔✔- ANONYMITY; GEOGRAPHIC reach; ALTERNATIVE to
physical cross-transportation; EASY access to CASH; several entities are required to issue
prepaid cards - the program manager, issuer, acquirer, payment network, distributor and
agents - which may be hard to supervise or monitor.
What is one of the PRIMARY concerns with regard to the use of VIRTUAL CURRENCIES?
- CORRECT ANSWER✔✔- Beneficial OWNERSHIP INFORMATION may be difficult to
obtain (ANONYMITY).
What are some EMERGING risks for Terrorist Financing? - CORRECT ANSWER✔✔-
SELF-FUNDING through SOCIAL MEDIA; NEW PAYMENT PRODUCTS and services;
and EXPLOITATION OF NATURAL RESOURCES
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
