CAMS Quiz

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?

• 5 years

• 2.5 years

• 10 years

• forever

Which three are the most commonly used risk criteria?

• Country Risk

• Customer Risk

• Reputation Risk

• Product Risk

Annual audits should be done by the compliance officer who just also be a Certified Anti Money Laundering Specialist

• True

• False

Answer explanation

They mut be done by an independant party

It is mandatory for all countries to follow FATF 40 recommendations

• True

• False

What are three elements of a sound Customer Due Diligence Program?

• Determination of what type of customer the financial institution will accept

• Training as to how and to what extent to identify prospective customers

• Obtaining date of birth and address of a prospective customer

• Determination of who in the institution should be assigned to the prospective customer as aliaison

What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers

• The country or location where the customer is from or does business

• The type and size of the business the customer runs

• The legal structure of the customer's business

• The previous financial institutions where the customer has banked

A bank employee reviews wire transactions looking for indications of wire stripping. Which action should the employee take to complete appropriate bank procedures?

• Compare the wire transaction as it enters and after it leaves the bank

• Check for suspicious phrases usually used to conceal originator or beneficiary identity

• Identify small incoming wire transactions received on behalf of a foreign client

• Identify wire transaction activity to or from a financial institution located in a higher risk jurisdiction

What is the currency threshold under the European Union Fourth Anti-Money Laundering Directive?

• 3000 Euros

• 15000 Euros,

• 10,000 Euros

• 5000 Euros

Which product is considered to be of highest money laundering risk?

• Wire transfer

• Credit cards

• Savings account

• Travelers Cheques

A politically exposed person (PEP) maintains an account at a bank. Last month a money laundering analyst filed a suspicious transaction report about unusual wire deposits originated by unknown individuals in the home country of the official. To whom should this situation be escalated?

• The board of directors

• Bank's legal department

• The bank's AML Officer

• FATF