ACAMS Certified Anti-Money Laundering Specialist Question Bank: Page 4 • ExamPrepare

302 questions in this view

Page 4 of 51

Question 19

In relation to employee and third-party due diligence, financial institutions (FI) should: (Select Three.)

establish clear policies and procedures that outline the criteria and frequency of third-party assessments.
conduct background checks on employees at the time of hire.
rely on periodic self-declarations from employees and third parties regarding their compliance with AML regulations and supplemented by random audits.
rely on industry reputation for assessing third parties to avoid extensive independent evaluation.
implement risk-based measures and ongoing monitoring to assess and mitigate risks associated with third parties and employees.

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Question 20

Which of the following statements best describes the financial crime risk associated with gatekeepers?

Gatekeepers hold positions that are secretive in nature, often making it difficult to verify their source of wealth.
Gatekeepers are entrusted with prominent functions and code of conduct that can assist laundering illicit funds when compromised.
Gatekeepers can be exploited for illicit purposes through their roles in hiding the origins of illicit funds.
Gatekeepers have unique relationship structures, making it difficult to determine beneficial ownership.

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Question 21

A compliance officer at a bank is reviewing the bank’s inherent risk as part of the AML/CFT risk assessment and notices that the criteria used by the bank to determine the AML/CFT risk exposure are customer type and the jurisdictions the bank is exposed to.

Which additional key factors should be considered to perform the risk assessment? (Select Two.)

Products and services offered
Number of correspondent banking payments
Number of suspicious activity reports (SAR) filed in the last three years
Distribution channels

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Question 22

A high-profile politically exposed person (PEP) has submitted a personal loan application from their bank.

Which of the following factors is considered a red flag for potential money laundering?

Long-standing personal relationships with local community leaders
Lack of clear source of wealth and income despite being well known
Involvement in charitable activities and philanthropic efforts
Established business history with reputable companies

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Question 23

Which of the following is a critical consideration for private sector firms when sharing data and intelligence to combat financial crime?

The cost of the data-sharing system and whether it fits within the existing IT budget
Ensuring that the shared data complies with applicable data protection regulations while maintaining the integrity and accuracy of the information
The preference of upper management regarding which teams should participate in the data-sharing initiative
The potential return on investment (ROI) from the data shared versus the financial crime prevention effort

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Question 24

The real estate sector is especially vulnerable to financial crime because: (Select Two.)

it is an inherently cash-intensive sector, making it difficult to identify unusual activity from legitimate transactions.
purchases allow for the movement of a large amount of funds all at once.
many countries lack adequate and accessible mechanisms for identifying the beneficial owners of real estate.
real estate transactions are more document-based than other banking activities, making the sector susceptible to documentary fraud.
transactions often commingle business and personal funds in a variety of complex transactions.

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Certified Anti-Money Laundering Specialist Practice Questions

Question 19

Question 20

Question 21

Question 22

Question 23

Question 24