AML Compliance Programs Flashcards
6 cards from real CAMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 AML Compliance Programs flashcards as text
What is the primary role of a Chief Compliance Officer (CCO) in an AML program?
Answer: To oversee, implement, and maintain the institution's AML compliance program
The CCO or BSA Officer is responsible for designing, implementing, and overseeing the institution's AML compliance program to ensure it meets regulatory requirements.
How often should AML policies and procedures typically be reviewed and updated?
Answer: At least annually or whenever significant regulatory changes occur
Best practice and regulatory guidance require AML policies to be reviewed at least annually and updated whenever there are material changes to regulations, products, or the institution's risk profile.
What does the term 'de-risking' refer to in the context of AML compliance?
Answer: Financial institutions terminating or restricting relationships with entire customer categories perceived as high-risk
De-risking refers to the practice of banks exiting entire customer segments or geographic regions deemed too risky for AML compliance, which has drawn criticism for financial exclusion impacts.
Which of the following is a key component of AML employee training programs?
Answer: Ensuring all staff understand red flags, reporting obligations, and consequences of non-compliance
Effective AML training must cover red flags of suspicious activity, the employee's reporting obligations, regulatory requirements, and the legal and reputational consequences of non-compliance.
What is a 'consent order' in the context of AML enforcement?
Answer: A formal enforcement action where an institution agrees to take corrective measures under regulatory supervision
A consent order is a formal enforcement tool where a financial institution agrees, without admitting fault, to implement specific remedial measures and submit to ongoing regulatory oversight.
Under the BSA, how long must financial institutions retain records related to funds transfers of $3,000 or more?
Answer: 5 years
The BSA requires financial institutions to retain records related to funds transfers of $3,000 or more for five years from the date of the transaction.