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Pass the ACAMS AML Certifications CAMS Questions and answers with Dumpstech

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Questions # 31:

Artificial intelligence (AI) and machine learning (ML) procedures help in applying a risk-based approach in AML compliance through: (Select Three.)

Options:

Automatically generating Suspicious Activity Reports (SARs) without the need for human review

Advanced customer risk assessments that synthesize client background information with additional data

Identification of links among apparently unrelated clients who have established complex networks for money laundering

Automatically adapting risk thresholds for customers without any human intervention

Detection of complex money laundering patterns in transactions

Questions # 32:

The purpose of a risk appetite statement is to:

Options:

clearly define the level of risk exposure to financial crime which a financial institution is willing to take.

help investors understand the risk a financial institution is willing to take.

help customers understand which financial institutions may be willing to bank their business.

eliminate high-risk business types from a financial institution.

Questions # 33:

Which of the following is a benefit of an institution implementing machine learning to identify suspicious transactions?

Options:

Adaptable to new AFC typologies through continuous model training

Completely unbiased and without error through continuous model training

More consistent and reliable detection outcomes

Transparent and easy to explain algorithms for regulator and compliance purposes

Questions # 34:

A law enforcement agency submits several requests to a financial institution.

Which request is legitimate and requires the bank to respond?

Options:

Keep an account open upon verbal request

Produce documents and testimony without a subpoena

Seize privileged documents upon written request

Freeze an account in terms of a court order

Questions # 35:

A real estate buyer purchases multiple high-value properties in cash through a series of transactions in a short period of time and without any clear economic justification.

Which of the following is the most likely money laundering risk associated with this behavior in the real estate sector?

Options:

The buyer is using high-value real estate transactions to obscure the origin of the funds.

The buyer is quickly diversifying their investment portfolio through structuring payments in order to take advantage of the liquidity of cash transactions in real estate.

The buyer is capitalizing on favorable market conditions and using cash purchases to outbid competitors in a competitive real estate market using insider information.

The buyer is a real estate developer acquiring multiple properties for a potential redevelopment project with a business partner located in a high-risk jurisdiction.

Questions # 36:

Which changes at a financial institution (FI) should trigger an enterprise-wide reassessment of its inherent AML risk exposure? (Select Three.)

Options:

Introduction of new products or services

Mergers or acquisitions

Restructuring of the FI's risk and compliance functions

Use of new technologies for delivering existing products

Changes in the individuals overseeing the FI's product lines and sales strategies

Questions # 37:

The primary objectives of the United Nations in developing sanctions regimes include: (Select Three.)

Options:

to force developing nations to adopt liberal or substantive democracies.

to support governments and regimes in the peaceful resolution of conflict.

to punish governments for having weak financial crime controls.

to deter non-democratic and non-constitutional changes within countries.

to support the protection of human rights.

Questions # 38:

Which of the following programs would most likely be considered part of an effective supervision regime for a regulator?

Options:

Onsite and offsite reviews, cooperating on an international basis with access to a range of sanctions and outreach

Onsite and offsite reviews, cooperating on an international and domestic basis with access to a range of sanctions and outreach

Offsite reviews, cooperating on a domestic basis with access to a range of sanctions and outreach

Onsite reviews, cooperating on an international and domestic basis with outreach and access to a range of sanctions

Questions # 39:

Which of the below statements are supported by the Financial Action Task Force (FATF) 40 Recommendations adopted in 2012? (Select Two.)

Options:

Customer privacy regulations should guide the development of due diligence and other money laundering and terrorist financing preventive measures.

Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.

Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.

Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.

Governments must work toward developing identical administrative and operational frameworks for investigating and prosecuting crime.

Regulators should direct Financial Institutions to establish appropriate frameworks to avoid banking higher risk customers.

Questions # 40:

Which of the following are red flags pertaining to potentially suspicious transactions by a customer? (Select Three.)

Options:

A customer deposits a large number of consecutively numbered money orders.

A customer requests loans made to local companies or secured by obligations of local banks.

A customer has regular deposits and withdrawals primarily in wire transfers.

A customer receives wire transfers from different unknown accounts which are immediately wired onwards to a third party.

A customer withdraws cash in amounts just under the reporting threshold.

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