ACAMS Basic 5

Question 1

What are the four pillars of a BSA/AML compliance program as required by U.S. regulators?

Accepted Answer

Internal controls, a designated compliance officer, training, and independent testing

Answer

U.S. regulators require AML programs to have written internal controls, a BSA/AML officer, ongoing training, and independent audits.

Question 2

What is the primary function of a transaction monitoring system (TMS) in AML compliance?

Accepted Answer

To identify patterns or anomalies in customer activity that may indicate suspicious behavior

Answer

A TMS uses rules, thresholds, and sometimes AI to flag unusual activity for human review and potential SAR filing.

Question 3

What does OFAC stand for, and what is its primary AML-related role?

Accepted Answer

Office of Foreign Assets Control; it administers economic sanctions programs

Answer

OFAC administers U.S. economic and trade sanctions and maintains the SDN list, which financial institutions must screen customers against.

Question 4

What is a 'look-back review' in the AML context?

Accepted Answer

A retrospective analysis of historical transactions after a compliance gap is identified

Answer

A look-back review examines past transaction activity—often mandated by regulators—to identify suspicious transactions that may have been missed.

Question 5

What is 'de-risking' and why has it drawn criticism from regulators?

Accepted Answer

Terminating relationships with entire categories of customers perceived as high-risk, rather than managing risk appropriately

Answer

De-risking involves blanket exit of customer segments (e.g., money service businesses) which can push transactions underground and is viewed as a failure to manage rather than avoid risk.

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

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

ACAMS Basic 5