Acams cams practice test

The vice president of the foreign correspondent banking department at a large United States bank
has been notified that a foreign bank with an offshore license wants to open a correspondent
account.
Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)

• A. A list of all the customers of the correspondent bank
• B. A list of the types of businesses served by the correspondent bank
• C. Information relating to the foreign bank’s anti-money laundering program
• D. The identity of 10% owners of the correspondent bank, unless it is publicly traded

What is an example of the integration stage of money laundering involving a bank or another
deposit-taking institution?

• A. Depositing illicit funds into an account set up for a front company
• B. Directing third parties to exchange illicit cash for negotiable instruments
• C. Wiring illicit funds from an account at one bank to an account at another bank
• D. Using illicit funds that had previously been deposited to purchase a luxury vehicle

Which aspect of the USA PATRIOT Act impacts foreign financial institutions?

• A. Requiring enhanced due diligence for foreign shell banks
• B. Expanding sanctions requirements to a U.S. financial institution’s foreign branches
• C. Expanding the anti-money laundering program requirements to all foreign financial institutions
• D. Providing authority to impose special measures on institutions that are of primary money- laundering concern

The compliance officer at a crowd funding website is in charge of monitoring new crowd funding
projects.
Recently, the number of crowd funding projects has significantly increased.
Which red flag indicates the highest anti-money laundering risk?

• A. Those with the largest number of donors
• B. Projects that get funding within days of their start
• C. Projects with the highest monetary success threshold
• D. Projects that start and close and are fully funded within a very short period

Which two statements in the Wolfsberg Groups Suppression of the Financing of Terrorism define
the role financial institutions should play in the fight against terrorism? (Choose two.)

• A. Financial institutions need to assist competent authorities in fighting terrorist financing through prevention, detection and information sharing.
• B. Financial institutions need to continuously analyze the types of activity related to terrorist financing and develop models that in the long term will drive down terrorism.
• C. Financial institutions should have financial intelligence units dedicated to the investigation of activity that would lead to the detection of terrorist financing as a means to decrease global terrorism.
• D. Financial institutions should apply extra due diligence whenever they see suspicious or irregular activities, especially when customers are engaged in sectors or activities that have been identified by competent authorities as being used for the financing of terrorism.

What is the appropriate compliance control for identifying politically exposed persons (PEPs)
according to the Basel Committees paper on Customer Due Diligence for Banks?

• A. Determining that a local figure is a PEP
• B. Reviewing when a relationship is established
• C. Reviewing relationships at account opening and on a periodic basis
• D. Requiring that the customer discloses that they are a PEP or an associate of a PEP

What are two sources for maintaining up-to-date sanctions information? (Choose two.)

• A. U.S. Federal Bureau of Investigation’s National Security Letters
• B. U.S. Department of the Treasury Office of Foreign Assets Control
• C. U.S. Department of the Treasury – Section 311 – Special Measures
• D. Financial Action Task Force’s list of High Risk and Non-Cooperative Jurisdictions

A bank has maintained an account for a European charity for several years. The charity provides
clothing to persons in need in various countries with active terrorists cells.
Which action by the charity indicates possible terrorist financing?

• A. The charity frequently withdraws cash from the bank
• B. The charity has branch locations located in various countries
• C. The charity receives cash donations primarily from European countries
• D. The charity maintains a bank account for non-business-related expenses

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?

• A. The board of directors
• B. The line of business executive
• C. The bank’s anti-money laundering officer
• D. The Financial Action Task Force’s PEP Hotline

Which two individuals are ordinarily beneficial owners of a private banking account according to the
Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)

• A. Those two are authorized signers on the account
• B. Those who have legal title to a controlling share interest in the customer
• C. Those who generally have ultimate control through ownership or other means over the funds in the account
• D. Those who are the ultimate source of funds for the account and whose source of wealth should be subject to due diligence