ACAMS - Association of Certified Anti-Money Laundering Specialists International AML/CFT Standards Questions and Answers

Question 1

According to the FATF 40 Recommendations, the cornerstone of an effective AML/CFT system, which allows for the flexible and efficient allocation of resources, is known as what?

Accepted Answer

The Risk-Based Approach (RBA)

Answer

The Prescriptive Compliance Framework

Answer

The Checklist-Based Model

Answer

The Transactional Limitation System

Question 2

A global bank is conducting its annual review of its correspondent banking relationships. To align with international best practices for collecting due diligence information, which standardized tool, developed by a major industry group, would be most appropriate to use?

Accepted Answer

The Wolfsberg Group's Correspondent Banking Due Diligence Questionnaire (CBDDQ)

Answer

The Basel Committee's Core Principles for Effective Banking Supervision

Answer

The FATF Public Statement on High-Risk Jurisdictions

Answer

The Egmont Group's Secure Web System

Question 3

Which of the following situations would mandate a financial institution to conduct customer due diligence (CDD) measures, according to FATF Recommendation 10?

Accepted Answer

When there is a suspicion of money laundering, regardless of any transaction threshold.

Answer

Only when establishing a new business relationship.

Answer

Only when a transaction exceeds a very high, pre-defined internal threshold set by the bank's board.

Answer

Only when a customer requests to open an account for a trust or legal arrangement.

Question 4

A country is undergoing an assessment by FATF to evaluate the implementation and effectiveness of its AML/CFT measures against the 40 Recommendations. This peer review process is officially known as a:

Accepted Answer

Mutual Evaluation

Answer

National Risk Assessment

Answer

Regulatory Compliance Audit

Answer

Financial System Stability Assessment

Question 5

A compliance officer at a bank identifies a new client from a jurisdiction publicly identified by the FATF as having strategic AML/CFT deficiencies. According to international standards, which of the following actions is most appropriate?

Accepted Answer

Apply enhanced due diligence measures to the business relationship.

Answer

Immediately decline the business relationship without further review.

Answer

Apply simplified due diligence as the risk has been identified by a third party.

Answer

Report the client to law enforcement for attempting to open an account.

Question 6

Which international body, primarily focused on banking supervision, works to strengthen the regulation and supervision of banks worldwide and has published guidelines on the sound management of AML/CFT risks that complement the FATF standards?

Accepted Answer

The Basel Committee on Banking Supervision (BCBS)

Answer

The Wolfsberg Group

Answer

The International Monetary Fund (IMF)

Answer

The Egmont Group of Financial Intelligence Units