ACAMS General Practice 2

Question 1

A bank receives a large cash deposit from a business customer that is inconsistent with the business's stated purpose. Which type of report is the bank most likely required to file?

Accepted Answer

Suspicious Activity Report (SAR)

Answer

A SAR is filed when a transaction is unusual or suspicious, even if it meets CTR thresholds, because it may indicate money laundering.

Question 2

Under FATF Recommendation 10, what is the minimum standard for customer due diligence when a business relationship is established?

Accepted Answer

Identifying and verifying the customer's identity

Answer

FATF Recommendation 10 requires financial institutions to identify and verify the identity of their customers when establishing a business relationship.

Question 3

Which of the following best describes a 'shell company' in the context of money laundering?

Accepted Answer

A legal entity with no active business operations used to obscure ownership

Answer

Shell companies have no genuine business activity and are often used to conceal the true beneficial owner of funds or assets.

Question 4

What is the primary purpose of the Bank Secrecy Act (BSA) in the United States?

Accepted Answer

To require financial institutions to assist government agencies in detecting money laundering

Answer

The BSA requires U.S. financial institutions to maintain records and file reports that help identify, detect, and deter money laundering and other financial crimes.

Question 5

A politically exposed person (PEP) is identified in a bank's customer base. What is the most appropriate enhanced due diligence measure?

Accepted Answer

Obtain senior management approval and conduct enhanced ongoing monitoring

Answer

PEPs require enhanced due diligence including senior management sign-off and heightened monitoring due to their elevated corruption and money laundering risk.

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

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

ACAMS General Practice 2