CAMS Emerging Trends 5

Question 1

Central Bank Digital Currencies (CBDCs) introduce which key AML design consideration for governments?

Accepted Answer

Whether to allow anonymous small-value transactions versus requiring full identification for all transfers

Answer

CBDC designers must balance financial inclusion (allowing some anonymity for small payments) against AML requirements (full traceability of all transactions).

Question 2

What is 'ransomware' in the AML context, and why does it matter for compliance officers?

Accepted Answer

Malware that encrypts victim data, with ransom payments often made in cryptocurrency requiring laundering

Answer

Ransomware payments—typically demanded in cryptocurrency—generate illicit proceeds that subsequently flow through exchanges and mixers, creating transaction monitoring obligations.

Question 3

Which emerging AML risk involves criminals establishing shell companies to acquire real estate in cash or through mortgage fraud to launder funds?

Accepted Answer

Beneficial owner obfuscation through real estate

Answer

Shell companies are used to purchase real estate while concealing the true beneficial owner, integrating illicit funds as seemingly legitimate property investments.

Question 4

How does 'pig butchering' (sha zhu pan) fraud connect to AML obligations for financial institutions?

Accepted Answer

Victims are persuaded to invest in fraudulent crypto platforms, and their deposits constitute fraud proceeds requiring reporting

Answer

Pig butchering scams convince victims to deposit funds into fake investment platforms controlled by criminals, generating fraud proceeds that flow through global banking systems.

Question 5

The emergence of 'super-correspondent' banks in global payment networks raises AML concerns because:

Accepted Answer

Concentration of global payments through a few institutions creates systemic risk if one is compromised

Answer

Concentration of global correspondent banking in a small number of institutions means a single compliance failure or exploitation could affect a vast network of downstream banks.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS Emerging Trends 5