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ACAMS Practice Questions with Verified Answers, Exams of Nursing

The College of New Jersey (TCNJ)Nursing

A set of practice questions and answers related to the anti-money laundering (aml) certification exam. It covers various aspects of aml, including the usa patriot act, money laundering stages, aml program elements, risk assessment, and common money laundering methods. The questions are multiple-choice and provide insights into the key concepts and principles of aml.

Typology: Exams

2024/2025

Available from 02/07/2025

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⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
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⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
ACAMS Practice Questions with verified
answers
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
The USA PATRIOT Act was passed in:
A) 1970
B) 1985
C) 2001
D) 2007 - correct answer ✔C
The three stages of money laundering are:
A) Layering, Placement, Refining
B) Placement, Refining, Integration
C) Refining. Integration, Layering
D) Integration, Layering, Placement - correct answer ✔D
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
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Partial preview of the text

Download ACAMS Practice Questions with Verified Answers and more Exams Nursing in PDF only on Docsity!

ACAMS Practice Questions with verified

answers

⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ

The USA PATRIOT Act was passed in:

A) 1970

B) 1985

C) 2001

D) 2007 - correct answer ✔C

The three stages of money laundering are:

A) Layering, Placement, Refining

B) Placement, Refining, Integration

C) Refining. Integration, Layering

D) Integration, Layering, Placement - correct answer ✔D

Which of the following would be satisfactory elements of an Anti-Money

Laundering Program?

I - A CAMS certified employee in the Investigations Unit writes up a few policies

and procedures and posts them on the department bulletin board.

II - Shortly after attaining their CAMS certification, the individual provides AML

training to the Investigations Unit.

III - The CAMS certified individual routinely reviews the work of the

Investigations Unit.

IV - The CAMS certified individual assumes the responsibility of a compliance

watchdog.

A) All of the above would be satisfactory

B) II and IV would be satisfactory

C) I and III would be satisfactory

D) None of the above would be satisfactory

A) Where the customer resides or where the business is headquartered.

B) What is the size of your financial institution.

C) What occupation or type of business does the customer derive their income

from.

D) What are the customer's ethnic heritage, sexual orientation and political

beliefs.

The correct answer would be "D." The customer's ethnic heritage, sexual

orientation and political beliefs are more discriminatory factors, and while they

may help frame the context of certain transactions, they should not be a major

factor in assessing risk.

The size of your financial institution is a critical element in determining the level

of sensitivity to risks for certain customers.

Analysis questions require one to synthesize information, arrive at solutions

and/or evaluate the usefulness of solutions. One - correct answer ✔D

In general, the three phases of money laundering are said to be: Placement:

A. Structuring and manipulation.

B. Layering and integration.

C. Layering and smur ng.

D. Integration and in ltration. - correct answer ✔B

C. Policyholders who are unconcerned about penalties for early cancellation.

D. Policyholders who make full use of the "free look" period. - correct answer

✔BCD

Which two activities are typically associated with the black market peso

exchange (BMPE) money laundering system?

A. Converting illicit drug proceeds from dollars or Euros to Colombian pesos.

B. Converting illicit drug proceeds from Colombian pesos to dollars or Euros.

C. Facilitating purchases by Colombian importers of goods manufactured in the

United States or Europe through peso brokers.

D. Facilitating purchases by European or U.S. importers of goods manufactured

in Colombia through peso brokers. - correct answer ✔AC

What is the Right of Reciprocity in the eld of international cooperation against

money laundering?

A. The legal principle that nancial institutions that have referred customers to

other nancial institutions can share information about these customers with the

other institutions.

B. A rule of the Basel Committee allowing properly regulated nancial institutes

of another member state of the Basel Committee to do business without

additional supervision to the degree that the other state grants the same right.

C. The right of each FATF member country to delegate prosecution of a case of

money laundering to another member that is already investigating the same

case.

D. A rule in the law of a country allowing its authorities to cooperate with

authorities of other countries to the degree that their law allows them to do the

same. - correct answer ✔D

The greatest risk for money laundering is for casinos that

A. Provide their customers with a wide array of gambling services.

B. Operate in a non-Egmont member country.

C. Allow customers with credit balances to withdraw funds by check in another

jurisdiction.

D. Only send suspicious transaction reports to the nancial intelligence unit of

the country it operates in. - correct answer ✔C

Which statement is true regarding the risk of Politically Exposed Persons (PEPs)?

A. PEPs provide access to third parties on whom the nancial institution has not

conducted suf cient due diligence.

B. PEPs have signi cantly greater exposure to the politically corrupt funds,

including accepting bribes or misappropriating government funds.

C. PEPs are foreign customers who inherently present additional risk as they are

engaged in cross-border transactions.

D. PEPs generally do not pose enhanced risks to an institution due to their

political standing; rather, PEPs increase the prestige of an institution. - correct

answer ✔B

Dirty money, derived from criminal activities of

Belgian Criminal A, is sent to a foreign bank account

of Corporation B. Then in Belgium, a new investment Company C is

incorporated. Criminal A is appointed as a director of Company C. Company C

borrows money from the foreign Company B and buys real estate in Belgium.

The real estate is rented to third parties. Director (Criminal) A also rents an

apartment in the building. With the funds generated by the rent, Company C

pays off

D. To use high-value assets such as luxury cars or boats. - correct answer ✔A

Which of the following statements is true? Correspondent banking is MOST

vulnerable to money laundering when the correspondent account is:

A. Maintained for foreign nancial institutions that are banks.

B. Not used to provide services directly to third parties.

C. Maintained for a foreign bank that does not have a physical presence in any

country.

D. Maintained for a foreign private bank that is publicly traded and is a quali ed

intermediary. - correct answer ✔C

Which statement is true? Lawyers:

A. In FATF member countries can generally not be used to serve as formation

agents to set up trusts, front companies or shell companies.

B. And similar professional "gatekeepers" are called money services businesses.

C. Can generally not be used to act as a nominee shareholder for a bene cial

owner.

D. Can be abused by launderers by using the accounts they set up for them for

the placement and layering of funds. - correct answer ✔D

The Third EU Money Laundering Directive of 2005 applies to which of the

following rms?

A. Auditors, estate agents based in the EU.

B. U.S. Financial institutions covered by the USA

Patriot Act.

C. Shell rms inside and outside the EU.

D. EU based high value good dealers who deal in cash of 10,000 Euro or more. -

correct answer ✔A

According to the EU Directives of 2001, an independent legal professional is

obligated to report suspicion of money laundering in a client relationship when:

A. Representing a client in a legal matter.

B. Ascertaining the legal position for a client.

C. Participating in nancial or corporate transactions.

D. Obtaining information associated with a judicial proceeding. - correct answer

✔C

Which of the following is the most dif cult regulatory challenge facing a foreign

nancial institution with a correspondent banking relationship in the U.S.?

A. USA Patriot Act.

B. Basel Due Diligence Principles for Banks.

C. FATF Guidance on Terrorist Financing.

D. UN Security Council Resolution on Correspondent Banking. - correct answer

✔A

Which were the Basel Committee's two main motivations to encourage strong

Know Your Customer programs in its paper "Customer Due Diligence for

Banks?"

A. A.Mirror FATF's KYC Recommendations.

B. Meet European Union guidelines.

C. Protect the safety and soundness of banks.

D. Protect the integrity of banking systems. - correct answer ✔CD

A. Customer sells gold in regions where it carries an important or religious signi

cance that adds to the high intrinsic value.

B. Payments come from third-party accounts.

C. Payments received are in the form of wire transfers instead of cash.

D. Account holder maintains gold bullion rather than nished pieces of jewelry. -

correct answer ✔B

Which of the following should a national legislature consider when criminalizing

money laundering in line with the CFATF 19 Recommendations (choose three)?

A. Do not limit the number of speci c predicate offenses for money laundering.

B. Criminalize conspiracy or association to engage in money laundering.

C. Indicate whether it is relevant that a predicate offense may have been

committed outside the local jurisdiction.

D. Require money laundering offenses to prove that the offender has actual

knowledge of a criminal connection to the funds. - correct answer ✔ABC

Which three statements are true about the 3rd EU Directive on Money

Laundering of 2005? It:

A. A.Was proposed in order to update European Community legislation in line

with the Financial Action Task Force (FATF) 40 Recommendations.

B. Largely replicates the de nitions included in the Second Directive, including

the de nition of a politically exposed person.

C. Repeats the main customer due diligence requirements of the rst and second

Directives, but adds more detail to the requirements by, for example, including

a speci c requirement to identify the bene cial owner if one exists and includes

ongoing monitoring requirements.

D. Requires rms to apply the customer due diligence requirements to existing

customers at appropriate times on a risk sensitive basis. - correct answer ✔ACD

The FATF 40 Recommendations say that countries should:

A. Not allow bearer shares and legal persons that are able to issue bearer

shares.

B. Gather statistics on STRs; prosecutions and convictions; on property frozen,

seized and con scated; and on mutual legal assistance, but not necessarily on

other international requests for co- operation.

C. Consider the feasibility of a system where banks and other nancial

institutions and intermediaries would report currency transactions without

indicating a minimum xed amount.

D. Not approve the establishment or accept the continued operation of shell

banks. - correct answer ✔D

Among the Principles for Information Exchange Between Financial Intelligence

Units for Money Laundering Cases, issued by the Egmont Group on June 13,

2001, we nd which of the following?

A. Information-sharing agreements must be drafted according to a model issued

by the Egmont Group.

B. Information-sharing agreements should not allow room for case-by-case

solutions to speci c problems in case of NCCT countries.

C. Information exchanged between FIUs may be used only for the speci c

purpose for which the information was sought or provided.

D. The requesting FIU may make use of the information shared by a disclosing

FIU for administrative purposes without the prior consent of the disclosing FIU. -

correct answer ✔C

In which stage of money laundering would you classify depositing small

amounts of cash into several related accounts?

A. Integration.

C. Investing.

D. Structuring. - correct answer ✔D

In which case might a Suspicious Transaction Report NOT be necessary?

A. A customer who deposits money of suspicious origins and refuses to answer

questions from the nancial institution's staff.

B. A customer who tries to move money that is suspected of being derived from

criminal activity.

C. A customer who owns a large supermarket and deposits large amounts of

cash several times a day.

D. A customer whose account is showing transaction activities which are beyond

his known nancial capability. - correct answer ✔C

As part of their role in ghting money laundering, nancial institutions should:

A. Designate a compliance of cer.

B. Depend solely on The State's staff for combating money laundering.

C. Refuse small cash deposits under the reporting threshold.

D. Not open accounts for people from high risk jurisdictions. - correct answer

✔A

What could happen to compliance of cers if they do not comply with the anti-

money laundering laws and regulations?

A. Their employers could face reputation damage, but the employee is immune

from penalty.

B. Loss of job, prison penalties and nes, negative reputation to their employer.

C. Nothing. Only the nancial institution's legal counsel will be responsible for

complying with laws.

D. Nothing. Only the staff directly handling transactions have to worry. - correct

answer ✔B

What is willful blindness de ned as?

A. Failing to le a Suspicious Transaction Report for dealing with companies or

nancial institutions from offshore tax havens.

B. Not following customer identi cation procedures as set out in the institution's

procedures.

C. Deliberate avoidance of knowledge of the facts or ignoring obvious money

laundering red ags.

D. Deliberate avoidance of a customer based on the assumption that his or her

behavior suggested a potential threat as money launderer and/or terrorist. -

correct answer ✔C

In anti-money laundering terminology a "red ag" is:

A. A warning sign used to bring attention to potentially suspicious, risky

transactions or activities.

B. A general banking term used once the balance is negative / overdue.

C. The standard ag of countries not cooperative in ghting money laundering and

terrorist nancing.

D. An indicator that a customer is listed on an economic sanctions list. - correct

answer ✔A

The Reporting Of cer of a nancial institution should:

A. Report everything that comes his way from anyone in the organization.

B. Report everything that comes his way from senior management or Board of

Directors.

What is the reasoning behind implementing a "risk-based anti-money

laundering approach"?

A. It will keep the regulators focused on money laundering controls in sectors

beyond banks.

B. Institutions can best use their limited resources to focus on matters where

the money laundering risks are highest.

C. A quantitative approach will generate better results than a qualitative

approach.

D. It allows the institution to focus on selling products that have a better return

on investment. - correct answer ✔B

According to the FATF 40 Recommendations, "designated non- nancial

businesses and professions" include:

A. Casinos, real estate agents and dealers in precious stones.

B. Money service businesses, gatekeepers, and issuers of electronic money.

C. Dealers in precious metals, lawyers, commodity futures traders.

D. Life insurance companies, real estate agents and notaries. - correct answer

✔A

According to the FATF 40 Recommendations, the threshold for identifying

occasional customers at nancial institutions is:

A. EURO/US$ 5,000.

B. EURO/US$ 10,000.

C. EURO/US$ 15,000.

D. EURO/US$ 20,000. - correct answer ✔C

Tom works as a compliance of cer at ABC Bank. He is looking at the transactions

of one of the bank's customers, Mr. Brown, the owner of a check cashing

company. Over the last six months, Mr. Brown has not made withdrawals of

cash against check deposits. He also deposited two checks for US$2,000 each

that were issued by a casino. When checking the KYC le, Tom sees that, when

opening the account, Mr. Brown had requested detailed information about fees

and commission that are charged by the

bank. What should arouse Tom's suspicion the most? Mr. Brown:

A. Deposited checks from casinos.

B. Did not make withdrawals of cash against check deposits.

C. Showed uncommon curiosity about commissions and fees charged.

D. Does not have an escrow account. - correct answer ✔B

A small broker-dealer has an AML compliance program that addresses

procedures for ling Suspicious Transaction Reports and includes policies,

procedures and internal controls for customer identi cation, monitoring

accounts and identifying money laundering red ags. Every employee of the

broker dealer is trained via the Internet in January and in July on AML issues.

The board does not take the Internet training. Instead,

the compliance of cer organizes a luncheon for them where an outsider comes

in and trains them. The program provides for the appointment of a compliance

of cer, and once a year the compliance of cer conducts an audit to test the

program. In what respect does the program need improvement?

A. The AML program should be tested by an independent person, not the

compliance of cer.

B. The AML program should be tested more than once per year.