Online Access Free ACAMS.CAMS.v2024-06-28.q652 Practice Test (Page 112)

CAMS Exam Question 551

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?

A.Investigate the source of funds

B.Determine the purpose of the account

C.Determine if the client appears on the Basel Committee on Banking Supervision's list of public officials

D.Take all reasonable steps to check the background of the individual based on public information

CAMS Exam Question 552

An institution is about to release a new peer to peer (P2P) funds transfer product to provide much needed remittance services to an under-banked population segment in the country.
The service allows customers to transfer funds through a mobile banking application to individuals worldwide entering only a name and mobile number. The new service charges less than comparable market solutions and offers real time transfer of funds. The customer onboarding process is conducted at branch locations with identity verification.
Which three present the highest anti-money laundering or sanctions risk and will require controls prior to launch? (Choose three.)

A.Customer onboarding

B.Cross-border functionality

C.Real time transfer of funds

D.Servicing the under-banked population

E.Limited access to counterparty information

Correct Answer: B,C,E

The correct answer is B, C, and E, as these three present the highest anti-money laundering or sanctions risk and will require controls prior to launch. According to the FATF Updated Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers1, P2P transactions pose significant challenges for AML/CFT compliance, as they may involve anonymous or pseudonymous parties, cross-border transfers, real-time settlement, and limited information on the beneficiaries. These factors increase the risk of money laundering, terrorist financing, and sanctions evasion, as well as the difficulty of detecting and reporting suspicious activity. Therefore, the institution should implement appropriate controls to mitigate these risks, such as:
Conducting enhanced due diligence on customers who use the P2P service, especially if they are located in high-risk jurisdictions or are involved in high-risk activities1.
Implementing transaction monitoring systems that can identify and flag unusual or suspicious patterns of behavior, such as large or frequent transfers, transfers to or from sanctioned entities or countries, or transfers that do not match the customer's profile or expected activity12.
Applying the travel rule, which requires the originator and beneficiary VASPs (or financial institutions) to exchange and retain information on the parties involved in the transfer, such as their names, account numbers, addresses, and national identification numbers13.
Establishing information-sharing and cooperation mechanisms with other VASPs, financial institutions, and regulators, to facilitate the exchange of relevant data and intelligence on P2P transactions and customers14.
References: 1: Updated Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers - FATF, page 13-16, 28-29, 32-33, 40-412: AML and Compliance Solution for The P2P Industry - Sanction Scanner3: P2P Money Laundering: How to Comply - ComplyAdvantage4: 2024 National Money Laundering Risk Assessment - U.S. Department of the Treasury, page 17.

CAMS Exam Question 553

A bank teller receives a written request from a police officer to review a previous customer's account on a pre-populated form with the officer's official letter head. The officer suspects the previous customer is engaging in smurfing. Which action should the bank teller perform?

A.Reject the request and escalate to the compliance officer.

B.Escalate the request to the compliance officer.

C.Provide the police officer information after management approval.

D.Provide the police officer information after AML compliance approval.

CAMS Exam Question 554

Which are common types of economic sanctions? (Choose three.)

A.Targeted sanctions

B.Technological sanctions

C.SWIFT network sanctions

D.Sectoral sanctions

E.Supervisory sanctions

F.Comprehensive sanction

CAMS Exam Question 555

Which are common types of economic sanctions? (Choose three.)

A.Technological sanctions

B.SWIFT network sanctions

C.Targeted sanctions

D.Supervisory sanctions

E.Sectoral sanctions