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ACAMS Practice Exam Test
Which methods are typically used to launder money using insurance companies? (Choose two.) A. The policy holder overpays the policy and moves the funds out of the policy despite paying early withdrawal penalties. B. The policy holder enters a sibling as a beneficiary of the insurance policy rather than themselves. C. The policy holder purchases a bond and redeems it at a discount prior to its full term. D. The policy holder uses an offshore company to pay the insurance installments. E. The policy holder is strongly interested in how many costs are incurred when taking out an insurance policy. - Correct Answer ✔️ ✔️ The policy holder overpays the policy and moves the funds out of the policy despite paying early withdrawal penalties.
The policy holder purchases a bond and redeems it at a discount prior to its full term. Based on studies executed by the Organization for Economic Cooperation and Development (OECD), which occupations are particularly vulnerable to the use of false identities and identity theft? A. Government officers B. Sea port officers C. Lawyers D. Laborers - Correct Answer ✔️ ✔️ Lawyers Which situations would require a financial institution (FI) to update its ML/TF risk assessment? (Choose two.) A. When new products, services or customer types are introduced. B. When new board members are elected. C. When the AML compliance team hires new employees. D. When the institution faces a merger or acquisition.
Which assessments are involved in the processes of mutual evaluation and follow-up by the FATF? A. Risk assessments and technical standards assessments B. Technical compliance assessments and effectiveness assessments C. Sanction risk assessments and the country's National Risk Assessment D. Country audit assessments and transaction monitoring assessments - Correct Answer ✔️ ✔️ Technical compliance assessments and effectiveness assessments. Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group? A. A local wealthy individual wants to become a customer of a local retail bank. B. A beneficial owner of an exchange house wants to open an account with the bank. C. A wealthy individual from a high-risk country wants to open an account with a private bank.
D. A new customer asks to set up an exchange house using the bank as the correspondent. - Correct Answer ✔️ ✔️ A wealthy individual from a high- risk country wants to open an account with a private bank. Which are common types of economic sanctions? (Choose three.) A. Targeted sanctions B. Technological sanctions C. SWIFT network sanctions D. Sectoral sanctions E. Supervisory sanctions F. Comprehensive sanction - Correct Answer ✔️ ✔️ Targeted sanctions.
Sectoral sanctions.
Comprehensive sanction.
A. Collaborate with the financial institution's (FI's) designated department to determine the appropriate course of action to comply with the request. B. Gather all requested documentation and send via secure email to the requesting authority. C. Share details of the investigation with respective colleagues who deal with this customer type on a daily basis. D. Freeze account assets and advise the customer that assets will not be released until the investigation has been completed. - Correct Answer ✔️ ✔ ️ Collaborate with the financial institution's (FI's) designated department to determine the appropriate course of action to comply with the request. Which factor should a financial institution (FI) consider prior to sharing customer records within the same jurisdiction? A. The availability of the institution's information sharing practices. B. The degree to which the collected client data is complete. C. The locally applicable restrictions regarding the disclosure of client information
D. The potential different time zones within the same jurisdiction - Correct Answer ✔️ ✔️ The locally applicable restrictions regarding the disclosure of client information. Which actions should a compliance officer take when implementing an enterprise-wide approach to managing money laundering risks in institutions operating with multiple lines of business and in various jurisdictions? (Choose three.) A. Design systematic controls specific to local regulatory expectations. B. Create processes to obtain and review information in accordance with its global anti-money laundering policies and procedures. C. Adopt policies and procedures that comply with relevant laws and work to identify, monitor, and mitigate group-wide risks. D. Institute a risk-based approach utilizing the most recent risk assessment of only the head office. E. Establish jurisdiction centric committees where relevant laws are reviewed and analyzed to understand their impact on the organization.
B. The respondent has sole responsibility for reporting suspicious activities regardless of the jurisdictions involved. C. The correspondent and the respondent pose the same risk to each other so the level of due diligence would be the same. D. Tier 1 banks can be subject to simplified due diligence provided enhanced due diligence is undertaken on the Directors. E. Through the sharing of information, FI's can help combat and fight against terrorism. - Correct Answer ✔️ ✔️ Funds used in the financing of terrorism and associated activities do not necessarily always come from criminal activity.
Through the sharing of information, FI's can help combat and fight against terrorism. Upon receipt of a law enforcement or government request about a customer, a financial institution (FI) should immediately perform which task? A. Notify the board of directors that the customer is currently under investigation. B. File a suspicious activity report or suspicious transaction report.
C. Contact the customer to inform them of the request. D. Review account activity for the customer to determine their overall risk. - Correct Answer ✔️ ✔️ Review account activity for the customer to determine their overall risk. Which principles should be included in a FATF-Style Regional Body (FSRB) update? (Choose two.) A. Issue country-specific Mutual Evaluation reports B. Address AML/CFT technical assistance of individual members C. Identify jurisdictions with weak AML/CFT regimes. D. Establish AML/CFT standards and typologies. E. Protect the reputation and standing of FATF. - Correct Answer ✔️ ✔ ️ Address AML/CFT technical assistance of individual members.
Protect the reputation and standing of FATF. A money service business (MSB) has implemented an automated transaction monitoring system. Upon reviewing an alert, an analyst suspects the activity
C. International incoming payments from foreign companies in which the precious metals dealer has an established relationship. D. Multiple daily point of sale transactions from third parties that appear to be individuals. - Correct Answer ✔️ ✔ ️ Payments received on the account reference unknown companies in the instructions. Under the USA PATRIOT Act, in which scenario would the US not have jurisdiction? A. US bank subsidiaries located in foreign jurisdictions. B. Foreign branch of a bank located in the US. C. Foreign bank with a US correspondent account D. Shell banks operating in foreign jurisdictions. - Correct Answer ✔️ ✔ ️ Shell banks operating in foreign jurisdictions.
FATF recommends the incorporation of some measures in customer due diligence (CDD) programs including: A. conducting the risk assessment of products and services.
B. conducting ongoing due diligence on the business relationship and monitoring of transactions. C. identifying the products and services and their suitability to customers. D. identifying the number of beneficial owners without the verification of their true identity. - Correct Answer ✔️ ✔️ Conducting ongoing due diligence on the business relationship and monitoring of transactions. The process of sending mass emails to unsuspecting customers to obtain personal identifiable information via trickery is known as: A. Spear phishing B. Voice phishing C. Bulk phishing D. SMS phishing - Correct Answer ✔️ ✔️ Bulk phishing.
What are four key elements that a KYC program should contain according to the Basel Committee requirements? A. Customer onboarding, sanction monitoring, customer acceptance, customer due diligence
A. Concern over the cancellation of the policy B. Lack of concern about the cost of the policy C. Repayments are consistent with the source of income. D. Identifying beneficiaries of the policy. - Correct Answer ✔️ ✔️ Concern over the cancellation of the policy. A Money Laundering Reporting Officer's (MLRO) lack of action led to deficiencies in the bank's AML program and a civil monetary penalty being levied against the MLRO. Why was this direct action taken against the MLRO? A. The MLRO is the only individual that can be held responsible for AML program deficiencies. B. MLROs can be held to an individual accountability standard and face potential penalties for contributing to AML program deficiencies. C. The MLRO agreed to the civil penalty so that the bank would not be found liable for the AML program deficiencies.
D. Action was brought against the MLRO because banks cannot be found liable for AML program deficiencies. - Correct Answer ✔️ ✔️ MLROs can be held to an individual accountability standard and face potential penalties for contributing to AML program deficiencies What type of information is received by government Financial Intelligence Units (FIUs)? A. STRs B. Client name screening results C. Compliance frameworks D. Politically Exposed Persons (PEPs) registrations - Correct Answer ✔️ ✔ ️ STRs
Which is a key goal of EU Directives on money laundering? A. Establish a consistent regulatory environment across the EU to prevent money laundering. B. Address control of payments in EU countries to reduce money laundering.
B. New lending staff should receive annual training on the preparation of currency transaction reporting. C. New staff should receive training during employee orientation or shortly thereafter on bank procedures. D. New operational staff should receive training shortly after hire on currency transaction reporting exemptions. - Correct Answer ✔ ️ ✔️ New staff should receive training during employee orientation or shortly thereafter on bank procedures. A Money Laundering Reporting Officer (MLRO) was aware that a strategically important client of the bank was sending money to human traffickers. However, the MLRO did not report the activity to law enforcement or move to exit the relationship. What is the legal term for the activity the MLRO engaged in? A. Avoidance B. Circumvention C. Negligent conduct D. Willful blindness - Correct Answer ✔️ ✔️ Willful blindness
Which statement best describes a key aspect of the AML Directive of the EU regarding business relationships and transactions with high-risk third countries? A. Obliged entities should voluntarily consider the implementation of increased external audit requirements for branches and subsidiaries located in high-risk countries. B. Obliged entities, in accordance with the member state regulations, should determine at a national level the measures that can be used for enhanced due diligence. C. Obliged entities should implement additional mitigating measures complementary to the enhanced customer due diligence procedures, in accordance with a risk-based approach. D. Obliged entities should not take into account specific circumstances when performing enhanced due diligence measures. - Correct Answer ✔ ️ ✔ ️ Obliged entities should implement additional mitigating measures complementary to the enhanced customer due diligence procedures, in accordance with a risk-based approach.
