CAMS Pre-Exam Practice Tests | (Updated 405 Questions)
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NEW QUESTION 24
A financial institution receives a regulatory enforcement action because of deficiencies in its anti-money laundering program.
Which action should the board of directors take?
- A. Purchase and install a new suspicious activity monitoring system
- B. Instruct the compliance officer to develop a plan to remediate the institution's anti-money laundering program
- C. Hire an attorney with instructions to protest the enforcement action
- D. Terminate the compliance officer and staff
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION 25
How can a financial institution verify the nature and purpose of a business and its legitimacy? Choose 3 answers
- A. By undertaking a company search or other commercial inquires to see that the institution has not been, or is not in the process of being dissolved of terminated
- B. By reviewing a copy of the corporation's latest audited reports and accounts
- C. By reviewing the company's website
- D. By using an independent information verification process, such as by accessing public and private databases
Answer: A,B,D
NEW QUESTION 26
Which activity is most likely to facilitate money laundering through on-line systems with inadequate controls?
- A. Conducting anonymous transactions
- B. Conducting large value transactions
- C. Providing continuous worldwide access
- D. Conducting a large volume of transactions
Answer: C
NEW QUESTION 27
Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)
- A. An affidavit must accompany the freeze order for the bank to comply with the request.
- B. The institution should obtain a copy of the court order to freeze the assets of the named individuals.
- C. The institution does not need to comply with the request if the client's assets make the task unusually difficult or complex to access.
- D. Ensure the client and beneficiaries are unable to access any frozen assets during the freeze order.
- E. Extend the account and asset freeze to the client's family members as a precautionary measure.
- F. Inform other banks in the same geographical area to freeze the client's assets if they are a member of that bank, too.
Answer: B,D
NEW QUESTION 28
You create an Azure Cognitive Services resource.
A data scientist needs to call the resource from Azure Logic Apps by using the generic HTTP connector.
Which two values should you provide to the data scientist? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
- A. Access key
- B. Resource group name
- C. Subscription ID
- D. Resource name
- E. Endpoint URL
Answer: B,C
Explanation:
Explanation/Reference:
References:
https://social.technet.microsoft.com/wiki/contents/articles/36074.logic-apps-with-azure-cognitive-service.aspx
NEW QUESTION 29
What is a key objective of the Egmont Group?
- A. To find ways to promote the development of Financial Intelligence Units and the sharing of expertise.
- B. To safeguard the financial system from illicit use and combat money laundering and promote national security.
- C. To provide best practices for financial institutions on how to report suspicious activity to best share the information with law enforcement.
- D. To issue binding standards that establish consistently operated Financial Intelligence Units in member jurisdictions.
Answer: A
Explanation:
Explanation
https://egmontgroup.org/en/content/about
"The Egmont Group is a united body of 165 Financial Intelligence Units (FIUs). The Egmont Group provides a platform for the secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing (ML/TF). This is especially relevant as FIUs are uniquely positioned to cooperate and support national and international efforts to counter terrorist financing and are the trusted gateway for sharing financial information domestically and internationally in accordance with global Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) standards.
NEW QUESTION 30
Your company recently deployed several hardware devices that contain sensors.
The sensors generate new data on an hourly basis. The data generated is stored on-premises and retained for several years.
During the past two months, the sensors generated 300 GB of data.
You plan to move the data to Azure and then perform advanced analytics on the data.
You need to recommend an Azure storage solution for the data.
Which storage solution should you recommend?
- A. Azure Cosmos DB
- B. Azure SQL Database
- C. Azure Queue storage
- D. Azure Blob storage
Answer: D
Explanation:
Explanation/Reference:
References:
https://docs.microsoft.com/en-us/azure/architecture/data-guide/technology-choices/data-storage
NEW QUESTION 31
An automotive parts company in South America sends multiple $500,000 wire transfers per week to ABC Holdings Ltd. in Asia referencing payment for silk flower shipments. Research reveals Sunrise Holdings, Ltd is registered in the British Virgin Islands with no available ownership information.
What are two red flags that indicate how trade-based money laundering could be occurring in this instance?
(Choose two.)
- A. The type of commodity being shipped appears inconsistent with the exporter or importer's regular business activities
- B. The transaction involves the use of front (or shell) companies
- C. Significant discrepancies appear between the description of the commodity on the bill of lading and the invoice
- D. The packaging is inconsistent with the commodity or shipping method
Answer: A,B
NEW QUESTION 32
Which measure to mitigate risk does the Basel Committee's Customer Due Diligence Principles suggest banks apply when accepting business from non-face-to-face customers?
- A. Requiring additional review of account opening documents by senior management
- B. Certification of documents presented
- C. Imposing a limit on permissible account activity for a defined period of time
- D. Requiring an in person interview with the customer
Answer: B
NEW QUESTION 33
In May 2002, the Wolfsburg Principles on Private Banking were revised and included a section that prohibits the use of internal non-client accounts in a manner that would prevent officials from appropriate monitoring movements of funds or keep clients from being linked to the movement of funds on their behalf. What is another name for these internal, non-client accounts?
- A. Pay through accounts
- B. Trust accounts
- C. Correspondent accounts
- D. Concentration accounts
Answer: D
NEW QUESTION 34
How do payable through accounts (PTAs) differ from normal foreign correspondent accounts?
- A. The customers have the ability to directly control funds at the correspondent bank
- B. The customers can hide their identity through the use of cover payments in U.S. dollars
- C. The customers do not have to worry about sanctions list screening such as OFAC
- D. The customers can contact the correspondent bank directly to send wire transfers
Answer: A
NEW QUESTION 35
Your company has a data team of Transact-SQL experts.
You plan to ingest data from multiple sources into Azure Event Hubs.
You need to recommend which technology the data team should use to move and query data from Event Hubs to Azure Storage. The solution must leverage the data team's existing skills.
What is the best recommendation to achieve the goal? More than one answer choice may achieve the goal.
- A. Azure Stream Analytics
- B. Azure Notification Hubs
- C. Apache Kafka streams
- D. Azure Event Grid
Answer: D
Explanation:
Event Hubs Capture is the easiest way to automatically deliver streamed data in Event Hubs to an Azure Blob storage or Azure Data Lake store. You can subsequently process and deliver the data to any other storage destinations of your choice, such as SQL Data Warehouse or Cosmos DB.
You to capture data from your event hub into a SQL data warehouse by using an Azure function triggered by an event grid.
Example:
First, you create an event hub with the Capture feature enabled and set an Azure blob storage as the destination. Data generated by WindTurbineGenerator is streamed into the event hub and is automatically captured into Azure Storage as Avro files.
Next, you create an Azure Event Grid subscription with the Event Hubs namespace as its source and the Azure Function endpoint as its destination.
Whenever a new Avro file is delivered to the Azure Storage blob by the Event Hubs Capture feature, Event Grid notifies the Azure Function with the blob URI. The Function then migrates data from the blob to a SQL data warehouse.
References:
https://docs.microsoft.com/en-us/azure/event-hubs/store-captured-data-data-warehouse
NEW QUESTION 36
An organization's automated surveillance system identifies large fluctuations in customer activity. As a result of an audit, the compliance officer is informed that the system is not generating alerts when activity is consistently abnormal over a long period of time. Currently the organization is evaluating new alert scenarios in an attempt to address this problem.
Which type of scenario is helpful in mitigating this weakness?
- A. Income
- B. Peer
- C. Mapping
- D. Below-the-line
Answer: C
NEW QUESTION 37
An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customer learns that many records for the correspondent bank have been requested by law enforcement. In the interest of maintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal request with the customer. The account officer intends to discuss points related to the investigation during the meeting.
What should an anti-money laundering specialist recommend?
- A. Cancelled the meeting as he has already behaved inappropriately by alerting to theinvestigation
- B. Let the account manager's manager know what conversations have taken place with thecustomer and document the account file accordingly
- C. Limit discussions about the investigation with the customer and by satisfied that the accountmanager has provided proper notice to the customer
- D. Discuss all the points being investigated by law enforcement to ensure the correspondent bankis well prepared when approached
Answer: C
NEW QUESTION 38
What is the primary action a financial institution should take before formulating its anti-money laundering program?
- A. It should consult with its correspondent banks to determine the nature and extent of their AMLprograms
- B. It should ensure that its training modules for all employees cover all relevant AML issues
- C. It should determine how extensive and well-trained the compliance staff is
- D. It should perform a comprehensive risk analysis
Answer: A
NEW QUESTION 39
Which two channels can be utilized during a cross-border money laundering investigation to assist in gathering information according to Financial Action Task Force? (Choose two.)
- A. Submitting only formal requests for information to a financial intelligence unit
- B. Contacting the potential suspect or their family members to request information
- C. Contacting existing liaison officers in the foreign jurisdiction
- D. Exchanging information between national law enforcement agencies
Answer: C,D
NEW QUESTION 40
Which of the following is the most common risk with a Personal or Private Investment Company (PIC)?
- A. They are usually established in financial secrecy havens
- B. They are notpubliclytraded
- C. They are almost always owned by politically exposed persons
- D. They often lacktransparentownership
Answer: D
NEW QUESTION 41
Which activity is most likely to facilitate money laundering through on-line banking systems with inadequate controls?
- A. Conducting anonymous transactions
- B. Providing continuous worldwide access
- C. Conducting large value transactions
- D. Conducting a large volume of transactions
Answer: A
NEW QUESTION 42
Which three methods are commonly used by an accountant to launder money? (Choose three.)
- A. Acting as a conduit for transferring cash between accounts
- B. Overstating income to hide excess cash
- C. Acting as a designee for someone who wishes to hide their identity
- D. Representing a client in court
- E. Understating income to take a tax loss
Answer: A,B,C
NEW QUESTION 43
A new compliance officer is reviewing the bank's anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, re-named the internal records group, and streamlined cash handling procedures.
Which factor causes the compliance officer to update the bank's risk assessment?
- A. The bank acquired another institution
- B. The cash handling procedures were streamlined
- C. The risk assessment was completed six months ago
- D. The internal records group has been re-named
Answer: A
NEW QUESTION 44
A local law enforcement officer notifies the bank compliance officer that he is working on an insurance fraud scheme that appears to be running transactions using the account of a bank employee. The law enforcement officer refers to a kiting suspicious transaction report filed by the compliance officer and requests further information.
What action should the compliance officer take?
- A. Call the employee and demand an explanation
- B. Provide the information to the law enforcement in response to a formal written request
- C. Allow access to the bank's documents immediately
- D. Inform the board of directors
Answer: B
NEW QUESTION 45
What should law enforcement provide when asking an institution to keep an account open?
- A. An explanation of the underlying conduct that is being investigated
- B. A written request with an explanation of the scope of the investigation
- C. A written request on government agency letterhead with the appropriate signature
- D. An in-person visit by an investigating official to explain the reasons why the account mustremain open
Answer: C
NEW QUESTION 46
Which are common types of economic sanctions? (Choose three.)
- A. Technological sanctions
- B. Comprehensive sanction
- C. Targeted sanctions
- D. Sectoral sanctions
- E. SWIFT network sanctions
- F. Supervisory sanctions
Answer: B,C,E
NEW QUESTION 47
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