CAMS Study Guide 2026

Everything you need to pass the CAMS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.

📋 CAMS Exam Format at a Glance

120
Questions
210 min
Time Limit
63.00%
Passing Score

📚 CAMS Topics to Study (31)

✍️ Sample CAMS Questions & Answers

1. A customer's account shows a pattern of receiving large wire transfers followed immediately by conversion to cryptocurrency on an exchange. This pattern is MOST consistent with:
Layering, as funds are being moved into a less transparent asset class

Converting wire transfer proceeds to cryptocurrency is a layering technique designed to obscure the trail of funds and complicate tracing.

2. What is the significance of 'unhosted wallets' (self-custodied wallets) in the FATF virtual asset framework?
Transactions involving unhosted wallets may require enhanced due diligence by VASPs

FATF guidance recommends that VASPs apply enhanced due diligence when their customers transact with unhosted wallets, as these lack an obligated intermediary.

3. What is a key difference between AML compliance and sanctions compliance at a financial institution?
AML compliance focuses on detecting and reporting suspicious transactions; sanctions compliance requires blocking or rejecting transactions with prohibited parties in real time

AML focuses on identifying and reporting suspicious activity to law enforcement; sanctions compliance requires real-time screening and immediate action (blocking/rejecting) when prohibited parties are identified, leaving no discretion.

4. What is the Financial Action Task Force (FATF) and what is its primary role?
An intergovernmental body that sets international standards for combating money laundering, terrorist financing, and proliferation financing

FATF is an intergovernmental policy-making body established in 1989 that develops and promotes international standards (the FATF Recommendations) for fighting money laundering, terrorist financing, and proliferation financing.

5. Which of the following best describes the use of 'nominees' in money laundering schemes?
Nominees are individuals who hold assets, accounts, or company directorships on behalf of the true beneficial owner to conceal their identity

Using nominees — often paid individuals willing to appear as owners or directors — creates a layer of anonymity between the criminal and their assets, frustrating beneficial ownership identification.

6. How has FATF addressed the AML risks associated with Designated Non-Financial Businesses and Professions (DNFBPs)?
FATF extended its AML Recommendations to DNFBPs including lawyers, accountants, real estate agents, and dealers in precious metals, requiring them to implement AML controls similar to financial institutions

FATF Recommendations 22-23 extend key AML requirements (CDD, record-keeping, suspicious transaction reporting) to DNFBPs because criminals exploit these sectors to launder money outside the traditional financial system.

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Your CAMS Study Path
1. Learn with Flashcards → 2. Drill Practice Tests → 3. Take the Full Exam Simulation
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