CAMS AML Compliance Programs

Question 1

What are the four pillars of a Bank Secrecy Act (BSA) compliance program?

Accepted Answer

Internal controls, independent testing, designated compliance officer, training

Answer

The four pillars of a BSA/AML compliance program are internal controls, independent testing (audit), a designated compliance officer, and ongoing training for employees.

Question 2

Which U.S. law is the cornerstone of the anti-money laundering regulatory framework and requires financial institutions to maintain records and file reports?

Accepted Answer

Bank Secrecy Act (BSA)

Answer

The Bank Secrecy Act of 1970 is the primary U.S. AML law requiring financial institutions to file Currency Transaction Reports (CTRs), Suspicious Activity Reports (SARs), and maintain records that assist law enforcement.

Question 3

What is the primary purpose of an independent AML audit function?

Accepted Answer

To objectively assess the effectiveness of the AML compliance program

Answer

An independent AML audit objectively evaluates whether the institution's AML program is effective, identifying gaps and weaknesses that management may have missed.

Question 4

Under the USA PATRIOT Act, which section requires financial institutions to establish a Customer Identification Program (CIP)?

Accepted Answer

Section 326

Answer

Section 326 of the USA PATRIOT Act requires financial institutions to establish a Customer Identification Program to verify customer identities at account opening.

Question 5

What does a risk-based approach to AML compliance primarily mean?

Accepted Answer

Allocating compliance resources proportional to the identified level of money laundering risk

Answer

A risk-based approach means directing the most resources and scrutiny to the highest-risk customers, products, and geographies rather than applying uniform controls across the board.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS AML Compliance Programs