Online Access Free ACAMS.CAMS7.v2026-08-01.q180 Practice Test (Page 22)

CAMS7 Exam Question 101

The purpose of a risk appetite statement is to:

A.clearly define the level of risk exposure to financial crime which a financial institution is willing to take.

B.help investors understand the risk a financial institution is willing to take.

C.help customers understand which financial institutions may be willing to bank their business.

D.eliminate high-risk business types from a financial institution.

CAMS7 Exam Question 102

Which of the following are key components of the Know Your Customer (KYC) process? (Select Two.)

A.Asking to provide a list of immediate family members

B.Inquiring about the source of wealth and source of funds

C.Verifying the financial crime awareness of the client

D.Collecting necessary documents to verify the veracity of information

CAMS7 Exam Question 103

Which of the below statements are supported by the Financial Action Task Force (FATF) 40 Recommendations adopted in 2012? (Select Two.)

A.Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.

B.Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.

C.Regulators should direct Financial Institutions to establish appropriate frameworks to avoid banking higher risk customers.

D.Customer privacy regulations should guide the development of due diligence and other money laundering and terrorist financing preventive measures.

E.Governments must work toward developing identical administrative and operational frameworks for investigating and prosecuting crime.

F.Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.

CAMS7 Exam Question 104

A compliance officer at a financial institution has completed an investigation into a high-risk customer's activities and determined that there are strong indications of money laundering. The compliance officer has documented their findings and is ready to recommend offboarding the customer. However, the relationship manager responsible for the customer is resistant to the idea, citing the customer's significant revenue contribution to the institution. What should the compliance officer do next to ensure the appropriate escalation and decision-making process is followed?

A.Escalate the matter to the institution's high-risk client committee, presenting the investigation findings and recommending offboarding while also acknowledging the relationship manager's concerns

B.Proceed with offboarding the customer unilaterally based on their investigation findings and anti- money laundering (AML) concerns

C.Attempt to persuade the relationship manager to agree with the offboarding recommendation by highlighting the potential reputational and regulatory risks associated with maintaining the relationship

D.Delay the offboarding decision and continue monitoring the customer's activities, waiting for further evidence to solidify the case for termination

CAMS7 Exam Question 105

What is the primary purpose of a risk appetite statement (RAS) in an organization and how should it be effectively communicated and implemented?

A.An RAS defines the amount and type of risk an organization is willing to take to achieve its objectives and should be communicated clearly to all stakeholders with corresponding controls implemented

B.An RAS is a detailed plan for managing operational risks and does not cover strategic or financial risks

C.An RAS is a formal document meant for regulatory compliance that does not influence day-to-day risk management practices within the organization

D.An RAS is used to outline the risk tolerance limits to external stakeholders and does not need to be communicated within the organization

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CAMS7 Exam Question 101

CAMS7 Exam Question 102

CAMS7 Exam Question 103

CAMS7 Exam Question 104

CAMS7 Exam Question 105

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