ACAMS - Association of Certified Anti-Money Laundering Specialists AML/CFT Risk Assessment Questions and Answers

Question 1

According to best practices, an enterprise-wide AML/CFT risk assessment should, at a minimum, consider which of the following core risk categories?

Accepted Answer

Customers, Products/Services, Geographies, and Delivery Channels.

Answer

Employee Training, Independent Audit, and Senior Management Oversight.

Answer

Data Security, Business Continuity, and Fraud Prevention.

Answer

Transaction Monitoring Scenarios, SAR Filing Quality, and Law Enforcement Cooperation.

Question 2

A credit union has traditionally served only local individual members. It plans to launch a new online platform to offer business accounts to international import/export companies. From a risk assessment perspective, what is the MOST significant change the credit union must address?

Accepted Answer

The introduction of new, higher-risk customer types and geographic exposures.

Answer

The need to update employee training on the new platform's user interface.

Answer

The marketing budget required to attract the new business clients.

Answer

The increase in transaction volume and server capacity requirements.

Question 3

Which of the following best describes the primary objective of an AML/CFT risk assessment?

Accepted Answer

To enable the institution to understand its risk profile and apply appropriate mitigating controls.

Answer

To eliminate all potential exposure to money laundering and terrorist financing.

Answer

To create a definitive list of high-risk customers for account closure.

Answer

To satisfy regulators by completing a mandatory annual exercise.

Question 4

In the context of an AML/CFT risk assessment, 'residual risk' is best defined as:

Accepted Answer

The risk that remains after mitigating controls have been implemented.

Answer

The total level of risk present before any controls are considered.

Answer

The specific risk associated with politically exposed persons (PEPs).

Answer

The risk of regulatory fines for non-compliance with AML laws.

Question 5

A bank's risk assessment identifies its private banking division as having the highest inherent AML risk. Which action is the most direct and appropriate response to this finding?

Accepted Answer

Allocating resources for enhanced due diligence (EDD) and specialized training for private banking staff.

Answer

Immediately closing all private banking accounts from high-risk jurisdictions.

Answer

Lowering the transaction monitoring thresholds for the retail banking division.

Answer

Implementing a standardized, uniform due diligence process for all bank customers.

Question 6

When conducting a periodic AML/CFT risk assessment, a financial institution should always ensure that the methodology and findings are:

Accepted Answer

Formally documented, approved by senior management, and used to inform the AML program.

Answer

Kept confidential from the board of directors to avoid undue alarm.

Answer

Static and unchanged from year to year to ensure consistency.

Answer

Based solely on publicly available information from sources like the FATF.