ACAMS Basic

Question 1

A compliance officer at an insurance business is monitoring many clients' transaction behavior. Which transaction is considered a red signal for possible money laundering?

Accepted Answer

A customer arranged a $100,000 charitable annuity with a non-profit organization that offers health and safety help across the world.

Answer

A customer in a high-risk jurisdiction recently bought property insurance for a real-estate development.

Answer

A client paid his quarterly life insurance payment using money orders from two different banks.

Answer

A firm has multiple affiliates and has just established separate group life insurance plans for each of them.

Question 2

A law enforcement officer phones a bank to inquire about a customer who is currently under investigation. The law enforcement officer demands information about the consumer. How should the bank respond?

Accepted Answer

Request that a formal letter be sent to confirm the authenticity of the request

Answer

Provide the necessary information to assist with the inquiry

Answer

Confirm if the customer is a current or previous customer

Answer

Inform the board of directors before replying to the request

Question 3

A bank compliance officer established additional monitoring procedures, which revealed some strange activities that might be suggestive of human trafficking. Which red flags should demand further transactional review?

Accepted Answer

Cash deposits made in cities where the consumer does not live or do business.

Answer

Cash deposits made in cities where the consumer does not live or do business, followed by same-day withdrawals.

Answer

Wire transfer activity from nations with large migrant populations.

Answer

Cash deposits made in cities where the client resides and conducts business.

Question 4

Which insurance product is most prone to money laundering?

Accepted Answer

Annuity

Answer

Regulated pension

Answer

Collateral

Answer

Casualty

Question 5

What is a critical component of Know Your Customer (KYC) requirements, according to the Basel Committee's Customer Due Diligence for Banks paper?

Accepted Answer

A policy on customer acceptance

Answer

All completed KYC documentation must be evaluated by a senior manager that was not engaged in the account opening process

Answer

Annual staff training

Answer

KYC criteria must be the same in all circumstances

Question 6

An immigrant who lives in the United States creates a bank account that contains a debit card. Several months later, the transactional monitoring system detects tiny payments into the account, which are followed by ATM withdrawals from a conflict-zone neighboring nation. What should be the bank's response?

Accepted Answer

Launch an inquiry into the action

Answer

Contact the consumer if transaction activity persists

Answer

Prevent any future activities

Answer

Submit a suspicious transaction report

Question 7

What mechanism do terrorist financiers use to transfer payments without leaving an audit trail?

Accepted Answer

Cash couriers

Answer

Virtual currency

Answer

Casa de cambio

Answer

Extortion

Question 8

Why do governments and multilateral institutions adopt economic sanctions?

Accepted Answer

To impose foreign policy objectives

Answer

To avoid fraudulent international commerce transactions

Answer

To combat an imminent terrorist threat

Answer

To impede kleptocracy

Question 9

Which of the following threats are not a direct effect of money laundering?

Accepted Answer

Marketable risks

Answer

Concentration risks

Answer

Operational risks

Answer

Reputational risks

Question 10

Denise works for the Financial Action Task Force (FATF); which of the following assertions are part of the FATF's responsibilities?

Accepted Answer

Publish monthly typology reports

Answer

Review the capital gains of Fortune 500 firms

Answer

Enforce financial laws

Answer

Review the capital gains of Fortune 500 firms