CAMS Transaction Monitoring 3

Question 1

Which of the following is a key limitation of purely rules-based transaction monitoring systems?

Accepted Answer

They cannot adapt to new or evolving money laundering typologies without manual updates

Answer

Rules-based systems are static and can only detect patterns explicitly coded into them, making them ineffective against novel schemes until rules are manually updated.

Question 2

A compliance officer notices that transaction monitoring alerts for trade finance products are disproportionately low compared to the volume processed. This MOST likely indicates:

Accepted Answer

Inadequate monitoring scenarios or thresholds for trade finance typologies

Answer

Abnormally low alert volumes in a high-risk product area suggest the monitoring system lacks adequate scenarios or appropriately calibrated thresholds for those products.

Question 3

Under US BSA requirements, how long must a financial institution retain records related to a SAR filing?

Accepted Answer

5 years from the date of filing

Answer

31 CFR 1020.320 requires financial institutions to retain SARs and supporting documentation for five years from the date of filing.

Question 4

Which of the following best describes a 'nested account' risk in correspondent banking transaction monitoring?

Accepted Answer

When a foreign bank's customers transact through the correspondent account without the correspondent bank knowing their identities

Answer

Nested accounts occur when a foreign bank's clients use the correspondent relationship to access the US financial system, obscuring the true beneficial owners from the correspondent bank.

Question 5

Which transaction monitoring scenario is MOST effective at detecting money laundering through real estate?

Accepted Answer

Monitoring for large cash payments or wire transfers associated with property purchases by shell companies

Answer

Real estate money laundering commonly involves cash or wires from shell companies to purchase properties, so monitoring for this combination targets the primary typology.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS Transaction Monitoring 3