FREE CAMS Transaction Monitoring Questions and Answers

Question 1

Which statement (or statements) about money laundering is/are true?

Accepted Answer

Using money obtained through criminal activity and hiding its source in order to use it for either legitimate or illicit purposes.

Answer

To evade paying taxes by hiding potential government earnings

Answer

Cleaning up financial records by legal means in order to do more immoral business.

Question 2

Which of the following best describes the definition of money laundering included in the United Nations 2000 Convention Against Transnational Organized Crime, also known as the "Palermo Convention"?

Accepted Answer

The purchasing, holding, or using of property with knowledge at the time of receipt that it was obtained through criminal activity or involvement in criminal activity.

Answer

The hiding of the funding source, a change in format, or relocation of the funds to a location less likely to draw notice.

Question 3

Which of these describes an integration transaction in the cycle of money laundering?

Accepted Answer

Entering other markets where money can be invested in commercial projects

Answer

Using dummy corporations to conceal the true beneficial owner and assets

Question 4

Which of the following memos advises prosecutors to concentrate on the people who actually committed the wrongdoing while conducting criminal and civil investigations into corporate misconduct?

Accepted Answer

Yates memo

Answer

Penn State memorandum

Answer

UN document

Answer

Memorandum Regime

Question 5

Which of the following is a reasonable purpose of the Final Rule that the New York State Department of Financial Services (DFS) published, requiring regulated institutions to have "Transaction Monitoring and Filtering Programs"?

Accepted Answer

Stop illicit transactions with entities that are subject to economic sanctions that are managed by the Office of Foreign Assets Control of the US Treasury Department.

Answer

Examine any rules for reporting suspicious activities that the Office of Foreign Assets Control of the US Treasury Department may have.

Answer

In order to comply with the Office of Foreign Assets Control of the US Treasury Department, facilitate the transactions prior to their implementation.

Answer

Verify transactions for compliance with anti-money laundering laws and regulations once they are completed.

Question 6

When it comes to the electronic transfers that a bank receives from its current clientele, which kind(s) of transactions will be subject to scrutiny by a group AML officer?

Accepted Answer

Everything mentioned

Answer

Computers used in Automated Clearing House

Answer

Transactions with automated teller machines

Answer

Both mobile phones and landlines

Answer

Computerized terminals

Question 7

Which of the following measures to integrate RDC processing into other controls must be performed in order to control the risks related to RDC?

Accepted Answer

Systems for preventing fraud

Answer

Connected accounts

Answer

Straightforward exchanges

Answer

Maintainable goods

Question 8

There would be certain requirements for a person holding a (Payable-Through-Account) PTA in the names of respondent banks. Of the following, which would you consider to be one of them?

Accepted Answer

An identifier for the sub-account in numerical form

Answer

The correspondent account holder's signature

Answer

The checks have linked bank logos.

Answer

English abbreviation for the sub-account's identification

Question 9

Which of the following PEPs' suspicious actions is causing issues for many financial institutions?

Accepted Answer

Utilizing shell corporations to launder approximately $400 million in money worldwide and to enable drug trafficking, gun smuggling, embezzlement, and money laundering.

Answer

Possessing more than 30 businesses worldwide through BVI entities.

Answer

Obtaining more than three banks' combined USD 50 million in import line facilities at once to support the expansion of its business.

Question 10

Which of the following services does Credit Union Central handle and perform?

Accepted Answer

Processing of electronic funds transfers (EFT)

Answer

Settlement of Special Drawing Rights (SDR)

Answer

Verify the clearance