ACAMS General Practice 5

Question 1

When assessing the risk of a new product, which factor is LEAST relevant to an AML risk assessment?

Accepted Answer

The product's profit margin for the financial institution

Answer

The degree of anonymity the product offers

Answer

The geographic reach of the product's user base

Answer

The volume and speed of transactions the product enables

Question 2

A real estate agent consistently facilitates all-cash property purchases by a client using shell companies. Which money laundering stage does this most represent?

Accepted Answer

Integration

Answer

Placement

Answer

Layering

Answer

Structuring

Question 3

Under the ACAMS framework, what is the recommended first step in developing an enterprise-wide AML risk assessment?

Accepted Answer

Identifying inherent risks across products, customers, geographies, and delivery channels

Answer

Filing SARs for all high-risk customers identified in prior years

Answer

Establishing a compliance committee and drafting AML policies

Answer

Training all front-line staff on recognizing suspicious transactions

Question 4

Which international body issues the Egmont Group's principles governing the exchange of financial intelligence between Financial Intelligence Units (FIUs)?

Accepted Answer

The Egmont Group itself

Answer

The United Nations Office on Drugs and Crime (UNODC)

Answer

The Financial Action Task Force (FATF)

Answer

The Basel Committee on Banking Supervision

Question 5

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?

Accepted Answer

Potential use of the account as a conduit for layering illicit funds

Answer

Tax evasion under the Foreign Account Tax Compliance Act (FATCA)

Answer

Violation of Regulation CC on funds availability

Answer

Non-compliance with the Electronic Fund Transfer Act

Question 6

What is the primary purpose of a financial institution's AML training program?

Accepted Answer

To ensure employees can identify, report, and escalate potential money laundering activity

Answer

To satisfy regulatory examination requirements and avoid penalties

Answer

To educate customers on the risks of financial crime

Answer

To document that the institution has conducted annual compliance reviews

Question 7

Which element is required for a financial institution to establish a legally sound AML compliance program under the BSA's 'four pillars'?

Accepted Answer

Designation of a compliance officer, internal controls, training, and independent testing

Answer

A dedicated AML department with no fewer than five specialists

Answer

Annual submission of an AML program certification to FinCEN

Answer

Quarterly on-site audits conducted by federal bank examiners