Pass ACAMS Certified Anti-Money Laundering Specialists Exam in First Attempt Guaranteed Updated Dump from Real4Prep!
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NEW QUESTION 205
Which three elements should be considered in an institution's enhanced due diligence process to assure itself that it has secured sufficient understanding of its higher risk respondent bank customers according to the Wolfsberg Principles on Correspondent Banking?
- A. Whether a Politically Exposed Person (PEP) has an interest or management role in therespondent
- B. The quality of the respondent's AML and client identification controls
- C. The sources of wealth for all significant ownership interests
- D. A risk-based determination as to whether or not the respondent is a shell bank
Answer: B,C,D
NEW QUESTION 206
A financial institution located within the European Union has historically allowed anonymous accounts.
Which of the following is the best method for this institution to use to ensure compliance with the European Union Money LaunderingDirectives?
- A. Close these accounts immediately and send funds to account holder.
- B. Alert local law enforcement authorities of activities observed in these accounts.
- C. Perform the required customer due diligence on these accounts before accepting or completing any transaction.
- D. Freeze these accounts and remit funds to the appropriate Financial Intelligence Unit before completing any transaction.
Answer: C
Explanation:
Explanation
Explaination: TO BE RECHECKED
NEW QUESTION 207
Which element is generally required of all anti-money laundering programs?
- A. A qualified compliance officer to manage the program
- B. Annual in-person AML training for all employees
- C. An enhanced due diligence program for all new customers
- D. A computer-based suspicious activity monitoring system
Answer: A
NEW QUESTION 208
An anti-money laundering officer is conducting employee reviews.
Which employee action warrants enhanced due diligence?
- A. The bank chief executive officer lives in a lavish home and has requested the board to approve a membership payment at an exclusive country club.
- B. The teller reviews customer profiles and makes notations of personal information to reportedly become familiar with bank customers.
- C. The branch manager reviews the daily hold report and releases holds on non-cash items once the bank receives credit from the paying bank.
- D. The private banker has recently taken long vacations which caused staff members to fall behind in their work to help cover bank duties.
Answer: A
NEW QUESTION 209
Federal law requires all U.S. financial institutions to secure and maintain all records and supporting documentation used m suspicious activity reporting for how many years?
- A. 2 years
- B. 5 years
- C. 10 years
- D. No requirement
Answer: B
NEW QUESTION 210
Which key aspect of the Office of Foreign Assets Control's extraterritorial reach specifically relates to prohibited transactions?
- A. Prohibit or reject unlicensed trade and financial transactions with specified countries, entities, and individuals
- B. Prohibit or reject licensed trade and financial transactions with specified countries, entities and non-U.S.
individuals - C. Prohibit or reject unlicensed foreign trade and financial transactions with specified countries, entities, and individuals
- D. Prohibit or reject licensed trade and financial transactions with specified countries, entities and U.S.
individuals
Answer: A
NEW QUESTION 211
A bank is preparing for its anti-money laundering independent review, which is performed every two years under the direction of the compliance officer. The bank's corporate audit department will conduct the review.
The compliance officer will review the final report before it is released to the Board of Directors.
What is the issue with this situation?
- A. The final report must be presented directly to the board of directors
- B. The review must be performed by a group outside of the bank
- C. There is a conflict of interest with the management of the review process
- D. Independent reviews must be performed annually
Answer: D
NEW QUESTION 212
After review of the financial institution's enterprise-wide anti-money laundering risk assessment, the new compliance officer identifies several deficiencies that need attention.
Which deficiency could lead to the highest potential for unmitigated risk?
- A. The risk assessment is several years old and does not cover all current products and services.
- B. The risk assessment does not anticipate potential risks even though the financial institution has no immediate plans involving those risks.
- C. The risk assessment is revisited too frequently thereby diverting critical resources from other compliance tasks.
- D. The risk assessment is managed by a different team from the previous assessment therefore disrupting continuity of institutional knowledge.
Answer: A
NEW QUESTION 213
What was cited by the Wolfsberg Group in its Statement on the Suppression of the Financing of Terrorism as being vulnerable to terrorist financing?
- A. Alternative remittance
- B. Correspondent banking
- C. Trade finance
- D. Private banking
Answer: A
NEW QUESTION 214
Since its last regulatory examination, a financial institution has aggressively grown by adding profitable new products and services. The institution has not historically received regulatory criticism regarding its anti-money laundering compliance program.
However, a recent regulatory examination cited significant deficiencies in the anti-money laundering program that were attributed primarily to the lack of oversight by the institution's leadership in implementing adequate controls over the new products and services.
Which area of international control should leadership first address to correct the weaknesses in the program?
- A. Anti-money laundering compliance staff
- B. Anti-money laundering policy
- C. Anti-money laundering policy
- D. Money laundering risk assessment
Answer: D
NEW QUESTION 215
What should an institution in their AML policies and procedures?
- A. Names of individuals currently on the OFAC list
- B. A description of money laundering trends and methodologies
- C. Copies of the institutions testing and monitoring results
- D. A component on when and how employees will be trained
Answer: D
NEW QUESTION 216
Why are Money Services Business (MSBs) frequently accused of being high risk for money laundering?
- A. MSBs generally charge lower commission rates than banks charge making them attractive to criminals
- B. A MSB should be used to hide money from a regulated entity
- C. MSBs can route funds to more high risk countries than banks
- D. MSBs are subject to regulatory scrutiny which varies greatly from country to country
Answer: A
NEW QUESTION 217
Which method is used to launder money via wire remittances sent through a bureau de change or money services business?
- A. A customer in country A makes a weekly small wire transfer to the bank account of an individual in country B.
- B. A large number of wire transfers are sent from a large number of senders in country A to a large number of recipients in country B during the period of December 1 to December 15.
- C. A customer in country A receives four small wire transfers from four different individuals located in country B on December 21. The aggregate of the wire transfers falls below the legal reporting threshold.
- D. A customer in country A makes frequent wire transfers to a single customer in country B that are slightly under the legal reporting threshold.
Answer: D
NEW QUESTION 218
What is the result of an increased awareness of the potential for gatekeepers to assist in money laundering in recent years?
- A. The FATF recommendations cover lawyers performing financial transactions
- B. Lawyers who represent money launderers can more easily be prosecuted
- C. The IMF has raised the profile of gatekeepers, requiring that countries regulate them
- D. Accountants are no longer considered gatekeepers, since they are not permitted to set up companies or trusts
Answer: B
NEW QUESTION 219
How does the Financial Action Task Force (FATF) communicate its findings regarding jurisdictions with strategic anti-money laundering / Counter Financing of Terrorism deficiencies?
- A. By issuing informal communication to FATF members
- B. By issuing two formal documents three times per year
- C. By issuing four formal documents to the deficient jurisdictions
- D. By issuing documentation to the private sector
Answer: C
NEW QUESTION 220
In some instances, a financial institution may receive a warrant from law enforcement authorities to search its premises. A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and seize specific categories of items or information. Generally, what is the required threshold for the requesting agency to establish in order to obtain a search warrant of a financial institution?
- A. A preponderance of the evidence
- B. Clear and convincing proof
- C. Probable cause
- D. Reasonable belief
Answer: C
Explanation:
Explanation
Explanation/Reference:
A search warrant is a grant of permission from a court for a law enforcement agency to search certain designated premises and to seize specific categories of items or documents. Generally requesting agency is required to establish that probable cause exists to believe that evidence of a crime will be located. Warrant is authorized based on information contained in an affidavit submitted by a law enforcement officer.
NEW QUESTION 221
An anti-money laundering specialist at a large institution is responsible for informing senior management about the status of the anti-money laundering program across the organization. The global institution handles retail banking, commercial banking, global markets, private banking and has an affiliated securities dealer.
The specialist and the team provide corporate strategic direction to these areas on anti-money laundering related subjects. The following information is reported to executive management on a regular basis:
* Total number of suspicious transactions identified and reported
* Suspicious transaction trends
* Training that has occurred for the various units
* Status report on the anti-money laundering regulatory environment
* Summary of exception reports
Which of the following additional elements is the most useful?
- A. Notification of management changes in the different major divisions.
- B. Results of related audits and examinations.
- C. Details on inquiries received from law enforcement.
- D. The total credit exposure for non-cooperative countries and territories.
Answer: C
NEW QUESTION 222
Which statement is true about when an institute becomes aware that a particular employee is under investigation by law enforcement as a result of a subpoena or warrant?
- A. The institute has a duty as an employer to inform the employee he or she is under investigation by law enforcement, buy must not inform them that a warrant or subpoena has been received
- B. If an independent investigation provides grounds to interview the employee, they can be interviewed and, if necessary, terminated buy not advised that they are under investigation
- C. Under no circumstances can the employee be interviewed by the institution without the consent of law enforcement for fear of tipping the employee off
- D. The employee can and should be interviewed, as well as notified of the investigation to demonstrate the seriousness of the offence and to get the employee's full attention and cooperation
Answer: D
NEW QUESTION 223
What are some red flags financial institutions should be aware of when trying to verify the identity of a customer? Choose 3 answers
- A. Customer not having a connected phone
- B. Customer having unusual documents from a foreign country
- C. Customer having no permanent address
- D. Customer being new to the community
Answer: A,B,C
NEW QUESTION 224
In addition to monitoring for suspicious activity, what are electronic monitoring systems also valuable for?
- A. Identifying how customers are using products
- B. Meeting mandatory regulatory requirements for system implementation
- C. Highlighting the skills of the system analysts
- D. Proving to the Board of Directors that the FIU is doing its job
Answer: B
NEW QUESTION 225
A European Union (EU) bank has a correspondent banking relationship with a U.S. bank. Under USA PATRIOT Act Section 311, the U.S. government has enacted special measures against a designated entity that has a payable-through account with the EU bank. Which of the following actions might the U.S. bank be required to take regarding the EU bank's services for the designated entity?
- A. Obtain additional information about customers permitted to use this account.
- B. Verify that the EU bank serves the designated entity.
- C. Perform enhanced due diligence on the EU bank.
- D. Ensure the designated entity's confidential information is not shared with other entities.
Answer: A
NEW QUESTION 226
Because financial institutions must sort through thousands of transactions each day, which risk-based factors should an institution's system for monitoring and reporting suspicious activity focus on?
- A. Local regulator's guidelines, economies of scales and budgetary provisions
- B. Drawing on uncollected funds and depositing of third-party instruments
- C. The institution's size, nature of business and type and location of its customers
- D. Whether a bank accepts cash deposits at its ATMs
Answer: B
NEW QUESTION 227
An existing customer at a bank has recently expanded its services to provide check cashing for its customers.
Which factor indicates the bank should terminate this relationship?
- A. The business has no previous experience with this service.
- B. The business is now a Money Service Business and has not registered with FinCEN.
- C. The bank has not updated its automated monitoring system.
- D. The business has not updated its anticipated activity with the bank.
Answer: C
NEW QUESTION 228
Which activity is most likely to facilitate money laundering through on-line systems with inadequate controls?
- A. Conducting a large volume of transactions
- B. Providing continuous worldwide access
- C. Conducting anonymous transactions
- D. Conducting large value transactions
Answer: B
NEW QUESTION 229
A prospective AML officer comes highly recommended by a bank's up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?
- A. Hire the individual, relying on the recommendation of its correspondent
- B. Do a thorough background check
- C. Hire the individual on a probationary basis so that the institution can determine if the individualis sufficiently experienced and capable
- D. Confer with its regulatory agency to determine whether it is appropriate to hire the person
Answer: B
NEW QUESTION 230
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