CAMS Conducting and Supporting AML Investigations

Question 1

A bank receives a grand jury subpoena for records on one of its customers. Which response is generally most appropriate?

Accepted Answer

Produce the records as required, keep the subpoena confidential, and review the relationship to decide whether a SAR is warranted

Answer

A subpoena shows law enforcement interest. Best practice is to comply, avoid tipping off the customer, and treat the subpoena as a trigger to review the customer's activity and decide whether a SAR is needed. A subpoena does not automatically require closing the account or filing a SAR.

Question 2

Under Section 314(a) of the USA PATRIOT Act, what are financial institutions required to do?

Accepted Answer

Search their records for accounts or transactions matching subjects named in FinCEN requests and report any matches

Answer

Section 314(a) lets FinCEN, on behalf of law enforcement, ask financial institutions to search their records for subjects of significant money laundering or terrorist financing investigations and report positive matches, normally within 14 days.

Question 3

What must a U.S. financial institution do to receive safe-harbor protection when sharing information with other financial institutions under Section 314(b)?

Accepted Answer

Register with FinCEN, renewing annually, and share only for purposes allowed under the rule

Answer

Section 314(b) is a voluntary program. Participants must register with FinCEN, renew that registration annually, and share information only to identify and report possible money laundering or terrorist activity. Doing so gives them a safe harbor from liability.

Question 4

What is the main purpose of a Mutual Legal Assistance Treaty (MLAT) in AML investigations?

Accepted Answer

Giving governments a formal channel to obtain evidence and assistance from each other in criminal matters

Answer

MLATs are agreements between countries for gathering and exchanging evidence in criminal investigations and prosecutions, such as bank records, witness testimony and asset freezes. They are government-to-government tools, not channels for banks to share data with each other.

Question 5

What is the Egmont Group's primary role?

Accepted Answer

It is an international network of Financial Intelligence Units that makes secure information exchange between FIUs easier

Answer

The Egmont Group connects national FIUs and provides a secure channel (the Egmont Secure Web) for sharing financial intelligence across borders. FATF issues the 40 Recommendations, the Wolfsberg Group publishes private-sector AML principles, and the Basel Committee sets capital standards.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS Conducting and Supporting AML Investigations