Practice Test Geeks(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test
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Basic Flashcards

7 cards from real ACAMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Under FinCEN's Customer Due Diligence (CDD) Rule, what is the beneficial ownership threshold that triggers identification requirements for legal entity customers?

    Answer: 25% or more ownership

    The CDD Rule requires identification of any natural person owning 25% or more of a legal entity, plus one control person.

  2. Which category of customer typically requires Enhanced Due Diligence (EDD) measures?

    Answer: Politically Exposed Persons (PEPs)

    PEPs present elevated corruption and money laundering risk due to their access to public funds and political influence, necessitating EDD.

  3. What is the purpose of a Customer Risk Rating (CRR) in an AML program?

    Answer: To categorize customers by their likelihood of posing money laundering risk

    A CRR aggregates factors like geography, products used, and business type to classify customers as low, medium, or high risk for AML purposes.

  4. A 'shell company' is most accurately described as which of the following?

    Answer: A legal entity with no significant assets or operations used to obscure ownership

    Shell companies often have no real business activity and are used to layer ownership and obscure the true beneficial owner of assets.

  5. What does 'source of funds' verification in CDD refer to?

    Answer: Identifying the income or asset origin that funds a customer's transactions

    Source of funds verification establishes the legitimate origin of the money a customer is using, helping detect illicit proceeds.

  6. Which of the following is a key component of an effective Know Your Customer (KYC) program?

    Answer: Establishing a Customer Identification Program (CIP) to verify identity

    CIP is a foundational KYC element requiring institutions to collect and verify identity information for each customer.

  7. When should a financial institution conduct a periodic review of an existing customer's due diligence information?

    Answer: Whenever the customer's risk profile changes or on a scheduled basis based on risk tier

    Ongoing due diligence requires refreshing customer information when risk factors change or on a risk-tiered schedule to ensure accuracy.