General Practice 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.
Read the first 7 General Practice flashcards as text
When assessing the risk of a new product, which factor is LEAST relevant to an AML risk assessment?
Answer: The product's profit margin for the financial institution
Profit margin is a business consideration, not an AML risk factor; anonymity, geography, and transaction characteristics directly affect money laundering risk.
A real estate agent consistently facilitates all-cash property purchases by a client using shell companies. Which money laundering stage does this most represent?
Answer: Integration
Purchasing real estate with laundered funds integrates illicit money into the legitimate economy in the form of a tangible, high-value asset.
Under the ACAMS framework, what is the recommended first step in developing an enterprise-wide AML risk assessment?
Answer: Identifying inherent risks across products, customers, geographies, and delivery channels
A sound risk assessment begins with identifying inherent risks across all business dimensions before applying controls or determining residual risk.
Which international body issues the Egmont Group's principles governing the exchange of financial intelligence between Financial Intelligence Units (FIUs)?
Answer: The Egmont Group itself
The Egmont Group issues its own principles for information exchange among FIUs, establishing a secure network for sharing financial intelligence globally.
A foreign national opens an account at a U.S. bank and immediately begins receiving large international wire transfers that are then wired to multiple foreign accounts. Which AML concern is most relevant?
Answer: Potential use of the account as a conduit for layering illicit funds
Pass-through accounts used to receive and rapidly wire out funds internationally are a classic layering technique designed to obscure the origin of illicit proceeds.
What is the primary purpose of a financial institution's AML training program?
Answer: To ensure employees can identify, report, and escalate potential money laundering activity
Effective AML training equips employees to recognize red flags and understand their reporting obligations, making them the institution's frontline defense.
Which element is required for a financial institution to establish a legally sound AML compliance program under the BSA's 'four pillars'?
Answer: Designation of a compliance officer, internal controls, training, and independent testing
The BSA's four pillars require: a designated compliance officer, written internal controls, an employee training program, and independent testing of the AML program.