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ACAMS-PREP-MOCK EXAM WITH CORRECT ANSWERS: Anti-Money Laundering (AML) Practice Questions, Exams of Nursing

The College of New Jersey (TCNJ)Nursing

A series of multiple-choice questions and answers related to anti-money laundering (aml) practices. It covers various aspects of aml regulations, including indicators of money laundering, responsibilities of financial institutions, customer due diligence, and international cooperation. The questions are designed to test knowledge and understanding of aml principles and procedures.

Typology: Exams

2024/2025

Available from 02/07/2025

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⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
ACAMS-PREP-MOCK EXAM WITH CORRECT
ANSWERS
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸ ⪛⪴⪴⪷⪱⪘⪞⪴⪸
What are three indicators of money laundering associated with using electronic
funds transfers? - correct answer ✔Funds transfers to or from financial secrecy
haven without an apparent business reason.
Funds transfers are received or sent from the same person to or from different
accounts.
Payments or receipts with no apparent link to legitimate contract goods or
services
On who does the ultimate responsibility for an institution's anti-money
laundering program rest? - correct answer ✔FI board of directors.
Federal law requires all U.S. financial institutions to secure and maintain all
records and supporting documentation used in suspicious activity reporting for
how many years? - correct answer ✔5 years
The marketing department presents a business plan targeting individuals
holding important public positions. What are some steps the financial
institution should implement as part of the plan to target such individuals? -
correct answer ✔Investigate the source of funds.
Determine the purpose of the account.
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ
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Download ACAMS-PREP-MOCK EXAM WITH CORRECT ANSWERS: Anti-Money Laundering (AML) Practice Questions and more Exams Nursing in PDF only on Docsity!

ACAMS-PREP-MOCK EXAM WITH CORRECT

ANSWERS

⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸ εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ ⪛⪴⪴⪷⪱⪘⪞⪴⪸εΘΙΙμλΜιΙππππ ιΤΜΜτλμτΧ

What are three indicators of money laundering associated with using electronic

funds transfers? - correct answer ✔Funds transfers to or from financial secrecy

haven without an apparent business reason.

Funds transfers are received or sent from the same person to or from different

accounts.

Payments or receipts with no apparent link to legitimate contract goods or

services

On who does the ultimate responsibility for an institution's anti-money

laundering program rest? - correct answer ✔FI board of directors.

Federal law requires all U.S. financial institutions to secure and maintain all

records and supporting documentation used in suspicious activity reporting for

how many years? - correct answer ✔5 years

The marketing department presents a business plan targeting individuals

holding important public positions. What are some steps the financial

institution should implement as part of the plan to target such individuals? -

correct answer ✔Investigate the source of funds.

Determine the purpose of the account.

Take all reasonable steps to check the background of the individual based on

public information.

Which statement is true about banking regulatory agencies having the authority

to obtain information from regulated institutions? - correct answer ✔The

agencies authority to conduct examinations negates the need for a warrant or

subpoena.

A customer comes into the bank and appears to be ill-at-ease waiting in the

teller line. When the customer gets to the teller, he become exceedingly

nervous and asks for a large cashier's check to be cashed and disbursed to him

in $100 bills.

What should the teller do after completing the transaction? - correct answer

✔File a SAR on the customer

What is the term for trading through multiple accounts, where an individual

generates offsetting profits and losses and transfers of positions through

accounts that do not appear to be commonly controlled? - correct answer

✔Wash Trading

In performing a risk analysis, which factor(s) should a financial institution

review? - correct answer ✔Its customer base, location, products and services.

How should a financial institution deter money laundering through new

accounts? - correct answer ✔Document the identity of the party opening the

account.

Determine the beneficial owners of the account.

Which three circumstances are indicators for defining a customer as required

additional diligence according to the Wolfsberg Principles on Private Banking? -

correct answer ✔Persons residing in and having funds from countries with

inadequate AML standards.

Persons engaged in business activities known to be susceptible to money

laundering

Persons who receive funds from correspondent banking relationship

What is the Black Market Peso Exchange? - correct answer ✔

Which customer transaction with a securities dealer would indicate the highest

suspicion of money laundering? - correct answer ✔High level of account activity

with very low levels of securities transactions.

What was cited by the Wolfsberg Group in its Statement on the Suppression of

the Financing of Terrorism as being vulnerable to terrorist financing? - correct

answer ✔Alternative remittance (Hawala)

Which three are principles found in the document "Principles of information

Exchange between Financial Intelligence Units (FIUs)"? - correct answer ✔The

Exchange of information between FIUs should take place as informally and as

rapidly as possible and with no perquisites, while guaranteeing privacy and

confidentiality of the shared data.

The EGMONT principle of free exchange of information at the FIU level should

be possible on the basis of reciprocity, including spontaneous exchange.

It should be possible for communication between FIUs to take place directly and

without intermediaries.

A customer comes into a financial institution and deposits a large amount of

cash. He has never done that before. When asked about the deposit, he

indicates he recently sold a used car and received cash.

He does not trust forms of payment and is wary of counterfeit money orders.

What should the bank do? - correct answer ✔While the explanation appears

plausible, the institution should, for a period of time, monitor the account for

cash transactions and suspicious activity.

Which type of transactions present the highest risk? - correct answer ✔foreign

exchanges

To guard against acquisition or control of a financial institution by money

launderers or their associates, what should supervisory agencies require? -

correct answer ✔Thorough due diligence on prospective owners

The Board of Directors and the senior management of a financial institution

should ensure that which three are established and followed with regard to an

effective AML program? - correct answer ✔there is a strong compliance

program

they are kept informed of all major AML issues

regulatory compliance is made part of all relevant job descriptions

Interviewing knowledgeable employees of the institution

Exploring leads through internet searches

In the FATF 40 recommendations, the focus of AML efforts has been expanded

beyond

Financial Institutions. Which three businesses and/or professions are covered? -

correct answer ✔Real Estate Agents when involved in transactions for clients

concerning buying and selling properties

Dealers in Art, when they deal with cash over a certain amount

TSCP Trust and company service providers.

What is a criterion for FATF membership? - correct answer ✔Should be a

member of a FATF-style regional body

Which three areas do FATF's 40 recommendations cover? - correct answer

✔International Cooperation

Financial Systems and their Regulation

The Criminal Justice System

What is suspicious activity or red flag with regard to a customer's activity? -

correct answer ✔Paying the teller he deals with a regular gratuity

Exchanging small denomination bills for large ones

engaging in wire transactions with an offshore account

A remittance company received a money order from a senior political figure m

the Philippines to transfer a large sum of money to a charity group in the

Philippines. A review of the charity group revealed a director having dose ties

with a known terrorist group primarily financed through kidnapping and

extortion.

What is a key risk indicator associated with terrorism financing? - correct

answer ✔There is a link between the charity group and a known terrorist group

What should an effective anti-money laundering training program include? -

correct answer ✔Real-life money laundering examples

Which two aspects of the security broker dealer industry increase its exposure

to money laundering? - correct answer ✔Disposing of cash through securities

purchases

Which of the following is the most common risk with a Personal or Private

Investment Company (PIC)? - correct answer ✔They often lack transparent

ownership.

International Money laundering Information Network

Regulatory sharing through Supervisory Channels

In addition to monitoring for suspicious activity, what are electronic monitoring

systems also valuable for? - correct answer ✔Meeting mandatory regulatory

requirements for system implementation

Which three are the most commonly used risk criteria? - correct answer

✔Country risk, Customer risk, Product and Service risk

Why do government entities around the world believe that a risk-based

approach to AML/CFT compliance is a preferable prescriptive measure? - correct

answer ✔It is more flexible, effective an proportionate

What is the primary action a financial institution should take before formulating

its antimoney laundering program? - correct answer ✔It should consult with its

correspondent banks to determine the nature and extent of their AML programs

Which activity is most likely to facilitate money laundering through on-line

systems with inadequate controls? - correct answer ✔Providing continuous

worldwide access

A customer has held an account at a local credit institution for 10 years. The

account has received deposits twice weekly for the same amount and has never

shown signs of suspect behavior. Monitoring software indicated that in the past

few months the account has received several large deposits that were not in

line with the account history. When asked, the customer states she recently

sold a piece of property, which is supported with a proof of sale. What should

the compliance officer do next? - correct answer ✔File and STR with competent

authorities

What describes the Black Market Peso Exchange money laundering method? -

correct answer ✔a method primarily used by narcotics traffickers to transfer

value to the source country

In general, what is an element that a financial institution or business does not

have to specifically address in an anti-money laundering program? - correct

answer ✔a description of its OFAC program to address government watch list

screening

How can dealers in high-value items be at risk for money laundering? - correct

answer ✔Carrying large amounts of gems of high value is physically easy

Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international

cooperation? - correct answer ✔They provide a legal basis for transmitting

evidence that can be used for prosecution and judicial proceedings

A profitable commercial customer who operates an import-export business has

multiple accounts with the same institution at branches in different locations.

The customer receives funds from a jurisdiction perceived as highly corrupt

according to Transparency International ratings. The customer makes frequent

transfers among the accounts and prefers to manage the accounts separately.

What should the institution do to mitigate the risk associated with these

accounts? - correct answer ✔File a suspicious transaction report

Maintaining customer information to facilitate timely retrieval of such

information

How can a financial institution verify the nature and purpose of a business and

its legitimacy? - correct answer ✔By using an independent information

verification process, such as by accessing public and private databases

What is a key element required to ensure an anti-money laundering compliance

program is effectively embedded into an institution's culture? - correct answer

✔ongoing training

Which three statements are true regarding the extraterritorial reach of laws and

legislation of the U.S.? - correct answer ✔The criminal ant-money laundering

law can apply to transactions that occur partially overseas.

economic and trade sanctions by OFAC may pose extraterritorial risks for

financial institutions and businesses outside the U.S.

The defendant does not need to know the funds came from an illegal activity

under, state, federal or foreign law.

Which three criteria does a shell bank meet according to the Wolfsburg

Principles on Correspondent Banking? - correct answer ✔It does not conduct

business at a fixed address in a jurisdiction in which it is authorized to conduct

business.

It does not employ on or more individuals at its fixed address where it is

authorized to conduct business or maintain operating records at that business

An audit completed the previous week revealed that a private banking

customer submitted incomplete documents when establishing an account

earlier m the year. The customer received weekly electronic fund transfers from

a narcotic-producing jurisdiction. While the relationship manager who opened

the account is on leave for 5 weeks, the customer requests that the institution

remit a substantial sum to a country that represents a high risk of money

laundering. The relationship manager is a friend of the anti-money laundering

specialist. What should the anti-money laundering officer do first? - correct

answer ✔File a suspicious transaction report with the competent authority.

A junior account manager within an international private bank in Country A was

asked by one of his valued customers, who has held an account for several years

in the institution, about depositing a large sum of cash into her account. The

junior account manager informed his customer that his bank does not accept

cash. The junior account manager later reviewed a customer activity report and

noticed a number of smaller dollar wires from banks in neighboring Country B,

which has lax currency controls, that totaled about as much as the customer

intended to deposit. What should the junior account manager do? - correct

answer ✔Notify the anti-money laundering specialist of his bank, but do not call

the customer

What are three risk factors a financial institution should examine with regard to

a proposed new product? - correct answer ✔The complexity of the product.

The need to verify the identification of the customer.

Whether the product is easily transferable.

The purpose of an anti-money laundering program should be to do what? -

correct answer ✔Avoid criticism and sanctions from government regulators

According to experts, what is the most effective way to prevent money

laundering through financial institutions? - correct answer ✔Implementing a

sound customer due diligence program.

In 2004, Consolidated KYC Risk Management was issued by the Basel Committee

on Banking Supervision (BCBS). What is a key message in this document? -

correct answer ✔Consolidated KYC risk management for a group is critical and

trumps jurisdictional rules has limit information sharing.

What should a bank focus on to ensure on-going compliance with its AML

program? - correct answer ✔It should ensure that it develops and provides on

going targeted training of all current and new employees.

What was the topic the Wolfsberg Group's first guidance addressed? - correct

answer ✔Private banking

A prospective AML officer comes highly recommended by a bank's up-stream

correspondent institution of similar size and make-up, located in a different city

in the same country. The bank is interested in hiring the individual. What should

be the next step taken by the Board of Directors? - correct answer ✔Do a

thorough background check

What are three factors a financial institution should examine with regard to a

new customer who is opening up a new account? - correct answer ✔The type

and size of the business the customer runs

The legal structure of the customers business

the previous financial institutions where the customer has banked

Which three do the Office of Foreign Asset Control regulations cover? - correct

answer ✔All U.S. -domiciled entities and their foreign branches

All foreign based entities that have U.S. customers

All U.S. Citizens

Name two statements about the Wolfsberg Group are true? - correct answer

✔It focuses primarily on Know Your Customer, AML, and CTF guidance

It has no power to impose principles/guidance

An anti-money laundering specialist has been asked to create internal anti-

money laundering policies, procedures and controls for a recently chartered

offshore financial institution.

Which three should be included? - correct answer ✔A training program for

senior managment and staff.

An anti-money laundering compliance program, internal audit program and

procedure manual

Compliance requirment of host and charting countries.

Which primary international authoritative body designates sanctions? - correct

answer ✔United Nations (UN)

The officer reviews the accounts increase in compliance with a long standing

know your Customer policy. The self-assessment for the latest month shows a

significant increase in compliance deficiencies for the first time in more than a

year. What is the nest course of action for the antimoney laundering officer to

take? - correct answer ✔Implement a revision to the account-opening training

program

Which statement about U.S. Specified Unlawful Activities (SUA) is true? - correct

answer ✔In order to secure a conviction, the defendant must be proven to have

known the precise nature of the source of funds

Which method most likely indicates the placement stage of laundering dirty

money in a land based casino? - correct answer ✔Using cash to buy casino

winnings from legitimate winners ata premium

In many jurisdictions, financial institutions are prohibited from hiring a person

who has been convicted of what type of offense? - correct answer ✔offenses

involving disohonesty

What is one recommendation of the Basel Committee's 2001 paper Customer

Due Diligence for Banks"? - correct answer ✔Banks should develop clear

descriptions of acceptable customers

In which three situations is correspondent banking most vulnerable to money

laundering? - correct answer ✔When allowing foreign banks to use the

correspondent account to conduct large financial transactions on behalf of their

customers.

When allowing the correspondent bank account to be uses as a payable through

account (PTA)

when allowing the correspondent bank account to be used by other accounts

What are some of the shortcomings in using letters regulatory? - correct answer

✔They can be time consuming

they are based on pre-existing mutual treaties between countries

They must be approved in advance by the countries judicial authorities

An anti-money laundering specialist working at a bank just received a legal

request from a law enforcement agency mandating the release of all financial

transaction records relating to an account at the bank. The specialist

immediately recognizes the account as one owned by the bank Chief Executive

Officer's brother. During research to gather the requested documents, the

specialist finds several internal memos he had sent to the bank president with

concerns regarding possible suspicious activity relating to this account. The

specialist recalls the bank president verbally responded to each memo with an

explanation of the activity and indicated there was no cause for concern. What

should the specialist do with respect to these internal memos? - correct answer

✔Advise the bank's senior legal advisor of the situation.

Why would a credit card account likely not be used in the placement stage of

money laundering? - correct answer ✔Cash payments are generally restricted.

Which action should an FIU consider taking when it has information that might

be useful to another FIU? - correct answer ✔Supply the information to the other