ACAMS Basic 2

Question 1

Under the Bank Secrecy Act, at what dollar threshold must a financial institution file a Currency Transaction Report (CTR)?

Accepted Answer

$10,000

Answer

$5,000

Answer

$15,000

Answer

$25,000

Question 2

Which international body is primarily responsible for setting global AML/CFT standards and conducting mutual evaluations of member countries?

Accepted Answer

The Financial Action Task Force (FATF)

Answer

The World Bank

Answer

The International Monetary Fund

Answer

The Basel Committee on Banking Supervision

Question 3

What is 'tipping off' in the context of AML compliance?

Accepted Answer

Alerting a subject that they are under investigation or a SAR has been filed

Answer

Providing financial intelligence to law enforcement proactively

Answer

Informing regulators about a compliance program deficiency

Answer

Training staff about emerging money laundering typologies

Question 4

The FinCEN 314(a) program allows which of the following?

Accepted Answer

Law enforcement to request financial institutions to search records for named subjects

Answer

Banks to share customer data with credit bureaus without consent

Answer

Institutions to file joint SARs for shared customers

Answer

Regulators to access real-time transaction data from all banks

Question 5

What is the primary purpose of a Suspicious Activity Report (SAR)?

Accepted Answer

To alert financial intelligence units to potentially illicit activity

Answer

To document routine high-value cash transactions for tax purposes

Answer

To notify a customer that their account is being closed

Answer

To record all wire transfers above $3,000

Question 6

In correspondent banking, what is a 'nested' correspondent relationship?

Accepted Answer

A bank using another bank's correspondent account to access financial services

Answer

A direct relationship between two central banks

Answer

A bank opening sub-accounts for its individual retail customers

Answer

A relationship where two banks share the same compliance officer

Question 7

Which of the following best describes the concept of a 'risk-based approach' in AML compliance?

Accepted Answer

Allocating resources and controls proportionate to the level of money laundering risk identified

Answer

Applying identical controls to all customers regardless of their risk profile

Answer

Refusing service to all high-risk customers to eliminate risk entirely

Answer

Filing a SAR for every transaction that exceeds $1,000