CAMS Cheat Sheet 2026

The 30 highest-yield CAMS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is 'smurfing' in the context of emerging AML trends involving digital payments? → Structuring large transactions into many small ones below reporting thresholds
2. Which geographic region has been identified by FATF as increasingly used as a conduit for laundering proceeds through trade-based methods? → Free trade zones with lax oversight globally
3. Which metric is most commonly used to measure the effectiveness of a transaction monitoring system? → False positive rate
4. Which of the following KYC program components is the Basel Committee's 2001 study emphasizing? → Monitor.
5. What are the primary components typically assessed in a financial institution's AML risk assessment? → Customer/product/service risk, geographic risk, and channel/delivery risk
6. The 'Black Market Peso Exchange' (BMPE) is an example of which major money laundering typology? → Trade-based money laundering
7. A transaction monitoring system generates an alert for a wire transfer that matches a known money laundering typology. What is the analyst's FIRST step? → Gather all available information about the customer and transaction
8. Recording data from non-documentary or document-based sources. → Specified Unlawful Activity
9. What are the three levels of customer due diligence recognized in AML frameworks? → Simplified, standard, enhanced
10. A financial institution receives a grand jury subpoena for records on a customer who is the subject of an active SAR. What should the institution do? → Comply with the subpoena and do not notify the customer (tipping-off prohibition applies)
11. Which technology is being explored to improve AML information sharing between financial institutions while protecting customer privacy? → Privacy-preserving computation techniques like federated learning
12. Which of the following is a key limitation of purely rules-based transaction monitoring systems? → They cannot adapt to new or evolving money laundering typologies without manual updates
13. What is an 'inherent risk' in the context of an AML risk assessment? → The level of risk present before any AML controls or mitigating measures are applied
14. Which stage of the money laundering process is generally considered the most difficult for law enforcement and financial institutions to detect? → Layering
15. Which typology involves moving illicit funds through a series of foreign correspondent banking relationships to obscure their origin? → Correspondent banking layering through nested accounts
16. Which of the following programs is NOT administered by OFAC? → USA PATRIOT Act Section 314(a) information sharing
17. Trade-Based Money Laundering (TBML) most commonly involves which of the following techniques? → Manipulating trade invoices and shipping documents to transfer value across borders
18. Which of the following BEST describes the purpose of establishing 'expected activity' profiles in transaction monitoring? → To create a baseline against which deviations can be identified as potentially suspicious
19. A transaction monitoring analyst determines after investigation that an alert does not represent suspicious activity. What must the analyst document? → The rationale and evidence supporting the decision to close the alert without filing a SAR
20. Which of the following would NOT typically be included in the narrative of a well-written SAR? → The institution's opinion on whether the subject is guilty of money laundering
21. When is a financial institution NOT required to file a SAR even if it suspects illegal activity? → When the transaction is below $5,000 and involves an unknown customer
22. Under the BSA, what is the threshold amount that triggers mandatory Currency Transaction Report (CTR) filing? → $10,000
23. Which of the following entities may be more at risk from TPPPs that offer services to financial institutions? → online retailers
24. What is the minimum civil money penalty FinCEN can assess for a willful BSA violation per transaction? → $25,000
25. Which FATF recommendation was updated to specifically address virtual asset service providers (VASPs)? → Recommendation 15
26. What is 'chain-hopping' in the context of cryptocurrency-based money laundering? → Converting funds between different blockchain networks to obscure their trail
27. Which of the following services does Credit Union Central handle and perform? → Processing of electronic funds transfers (EFT)
28. What is the primary role of a Chief Compliance Officer (CCO) in an AML program? → To oversee, implement, and maintain the institution's AML compliance program
29. A bank employee inadvertently discloses to a customer that a SAR has been filed on their account. What is this called and what are the consequences? → Tipping off — a federal crime that can result in criminal prosecution
30. What are the three classic stages of the money laundering process? → Placement, layering, integration