CAMS AML Compliance Programs

Question 1

What are the four pillars of a Bank Secrecy Act (BSA) compliance program?

Accepted Answer

Internal controls, independent testing, designated compliance officer, training

Answer

Policies, procedures, audits, reporting

Answer

KYC, CDD, EDD, transaction monitoring

Answer

Risk assessment, governance, technology, staffing

Question 2

Which U.S. law is the cornerstone of the anti-money laundering regulatory framework and requires financial institutions to maintain records and file reports?

Accepted Answer

Bank Secrecy Act (BSA)

Answer

USA PATRIOT Act

Answer

Dodd-Frank Act

Answer

Foreign Corrupt Practices Act

Question 3

What is the primary purpose of an independent AML audit function?

Accepted Answer

To objectively assess the effectiveness of the AML compliance program

Answer

To generate revenue for the compliance department

Answer

To train new employees on AML procedures

Answer

To file Suspicious Activity Reports on behalf of the institution

Question 4

Under the USA PATRIOT Act, which section requires financial institutions to establish a Customer Identification Program (CIP)?

Accepted Answer

Section 326

Answer

Section 312

Answer

Section 314

Answer

Section 352

Question 5

What does a risk-based approach to AML compliance primarily mean?

Accepted Answer

Allocating compliance resources proportional to the identified level of money laundering risk

Answer

Applying the same level of scrutiny to all customers regardless of risk

Answer

Focusing AML efforts exclusively on high-net-worth customers

Answer

Eliminating lower-risk customers from the customer base

Question 6

Which federal agency is primarily responsible for enforcing the Bank Secrecy Act and AML regulations for banks in the U.S.?

Accepted Answer

FinCEN

Answer

SEC

Answer

CFTC

Answer

FDIC