ACAMS - Association of Certified Anti-Money Laundering Specialists Customer Due Diligence (CDD) Questions and Answers

Question 1

Which of the following is considered a core requirement of a Customer Due Diligence (CDD) program according to the FinCEN CDD Final Rule?

Accepted Answer

Conducting ongoing monitoring to identify and report suspicious transactions.

Answer

Processing all customer transactions within 24 hours.

Answer

Reporting all cash transactions exceeding $5,000 to the board of directors.

Answer

Obtaining a credit report for every new customer.

Question 2

A financial institution is onboarding a new corporate customer. According to the FATF Recommendations, identifying and verifying the identity of which of the following is a mandatory part of Customer Due Diligence?

Accepted Answer

The beneficial owner(s) of the corporation.

Answer

All senior managers of the corporation.

Answer

The customer's primary legal counsel.

Answer

The corporation's largest supplier.

Question 3

A bank determines that a new customer relationship presents a low risk of money laundering or terrorist financing. Under a risk-based approach, which level of due diligence would be most appropriate to apply at the start of the relationship?

Accepted Answer

Simplified Due Diligence (SDD)

Answer

Enhanced Due Diligence (EDD)

Answer

Standard Customer Due Diligence (CDD)

Answer

No due diligence is required for low-risk customers.

Question 4

An anti-money laundering analyst is reviewing a customer's account. Which of the following scenarios would most likely trigger the need for Enhanced Due Diligence (EDD)?

Accepted Answer

The customer makes a large, unusual transaction that is inconsistent with their established profile and has no apparent economic purpose.

Answer

The customer deposits a regular, fixed-amount paycheck every two weeks from a well-known local employer.

Answer

The customer opens a basic savings account with a low initial deposit and plans to make infrequent, small transactions.

Answer

The customer changes their mailing address to a new location within the same city.

Question 5

A key element of developing a customer risk profile as part of the CDD process involves:

Accepted Answer

Understanding the nature and purpose of the customer relationship.

Answer

Requiring the customer to maintain a minimum account balance.

Answer

Understanding the customer's political affiliation.

Answer

Limiting the number of transactions the customer can perform.

Question 6

What is the primary purpose of ongoing monitoring within a Customer Due Diligence (CDD) program?

Accepted Answer

To detect transactions that are inconsistent with the customer's known profile and report suspicious activity.

Answer

To ensure all customer data is encrypted.

Answer

To market new financial products to existing customers.

Answer

To conduct annual performance reviews of compliance staff.