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 (23)

✍️ Sample CAMS Questions & Answers

1. 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.

2. 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.

3. 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.

4. 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.

5. Within how many calendar days must a financial institution file a Suspicious Activity Report (SAR) after initially detecting a suspicious transaction?
30 days

U.S. financial institutions must file a SAR within 30 calendar days of initially detecting facts that may constitute a basis for filing; if no suspect is identified, this extends to 60 days.

6. What is 'layering' in the three stages of money laundering?
The process of conducting complex transactions to distance funds from their criminal origin

Layering is the second stage of money laundering, involving complex financial transactions designed to obscure the audit trail and distance the funds from their criminal source — often through wire transfers, currency conversions, or shell companies.

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