FREE ACAMS Basic Questions and Answers

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

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

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

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

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

Correct! Wrong!

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?

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

Provide the necessary information to assist with the inquiry

Confirm if the customer is a current or previous customer

Inform the board of directors before replying to the request

Correct! Wrong!

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?

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

Wire transfer activity from nations with large migrant populations.

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

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

Correct! Wrong!

Which insurance product is most prone to money laundering?

Regulated pension

Collateral

Annuity

Casualty

Correct! Wrong!

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

A policy on customer acceptance

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

Annual staff training

KYC criteria must be the same in all circumstances

Correct! Wrong!

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?

Launch an inquiry into the action

Contact the consumer if transaction activity persists

Prevent any future activities

Submit a suspicious transaction report

Correct! Wrong!

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

Virtual currency

Casa de cambio

Extortion

Cash couriers

Correct! Wrong!

Why do governments and multilateral institutions adopt economic sanctions?

To avoid fraudulent international commerce transactions

To combat an imminent terrorist threat

To impede kleptocracy

To impose foreign policy objectives

Correct! Wrong!

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

Concentration risks

Operational risks

Marketable risks

Reputational risks

Correct! Wrong!

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

Review the capital gains of Fortune 500 firms

Publish monthly typology reports

Enforce financial laws

Review the capital gains of Fortune 500 firms

Correct! Wrong!

In addition to obtaining and examining all necessary data from the financial institution under investigation, it is critical to interview which of the following individuals?

Auditors accountable for the institution

Internal compliance team

All knowledgeable employees

All Employees

Correct! Wrong!