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ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Sample Questions (Q29-Q34):
NEW QUESTION # 29
Which types of external data sources are expected to be used for screening customers as part of customer due diligence (CDD)? (Select Three.)
- A. Registers of stolen or forged documents (where available)
- B. Social media profiles to assess lifestyle and spending habits
- C. Customer feedback and online review platforms
- D. Sanctions lists, including those issued by the Office of Foreign Assets Control (OFAC)
- E. Beneficial ownership registers and adverse media sources
Answer: A,D,E
Explanation:
Effective customer due diligence relies on authoritative, reliable, and relevant external data sources, as outlined in FATF standards and national AML regulations.
Sanctions lists, such as those maintained by OFAC, the EU, and the UN, are mandatory screening sources to ensure compliance with sanctions regimes. Registers of stolen or forged documents, where available, help detect identity fraud and false documentation during onboarding.
Additionally, beneficial ownership registers and adverse media sources are essential for identifying hidden ownership structures, corruption exposure, and reputational risk.
Customer reviews and lifestyle assessments from social media are not considered reliable or appropriate primary sources for AML screening due to privacy, accuracy, and governance concerns.
NEW QUESTION # 30
In a standard customer due diligence (CDD) process focused on financial inclusion, the Financial Action Task Force (FATF) Recommendations require: (Choose two.)
- A. identification of the beneficial owner.
- B. identification and verification of the customer's identity.
- C. verification of the customer's credit history.
- D. identification of the customer's work address.
- E. [verification of the customer's income sources.
- F. identification of the customer's occupation.
Answer: A,B
Explanation:
Verifying a customer's identity is a fundamental CDD requirement under the FATF Recommendations, ensuring you know who your customer is.
Identifying the beneficial owner is required to uncover the natural persons ultimately controlling or benefiting from an account, closing the gap that would allow misuse of corporate vehicles.
NEW QUESTION # 31
Which services provided by an accounting firm could be considered as higher risk from a financial crime perspective? (Choose three.)
- A. Providing tax advice to an international customer hoping to move their assets out of their home country
- B. Preparing financial statements for a listed or a privately owned firm
- C. Auditing a firm that provides payroll software to large corporate customers
- D. Forming a trust on behalf of a customer with a complex setup and acting as a nominee director
- E. Assisting an offshore corporation from a jurisdiction with no available beneficial owner information to buy property in the UK
Answer: A,D,E
Explanation:
Forming complex trust structures and acting as a nominee director, providing tax advice to clients moving assets across borders, and assisting offshore entities from opaque jurisdictions in acquiring property are all higher-risk services. These activities may facilitate concealment of beneficial ownership, asset flight, or the integration of illicit funds into legitimate systems.
NEW QUESTION # 32
Artificial intelligence (AI) and machine learning (ML) procedures help in applying a risk-based approach in AML compliance through: (Select Three.)
- A. Identification of links among apparently unrelated clients who have established complex networks for money laundering
- B. Advanced customer risk assessments that synthesize client background information with additional data
- C. Automatically generating Suspicious Activity Reports (SARs) without the need for human review
- D. Automatically adapting risk thresholds for customers without any human intervention
- E. Detection of complex money laundering patterns in transactions
Answer: A,B,E
Explanation:
Artificial intelligence and machine learning technologies support the risk-based approach (RBA) to AML compliance by enhancing an institution's ability to identify, assess, and prioritize financial crime risks.
Regulatory guidance emphasizes that these technologies should augment-not replace-human judgment.
One key benefit is advanced customer risk assessment. AI and ML can synthesize large volumes of customer data, including background information, transaction behavior, and external risk indicators, allowing institutions to develop more accurate and dynamic risk profiles.
AI and ML also enable the identification of complex networks among seemingly unrelated clients. Through network analytics and pattern recognition, these tools can uncover hidden relationships used in layering and structuring activities.
Additionally, AI-driven systems excel at detecting complex money laundering patterns within transaction data that may not trigger traditional rule-based alerts, improving effectiveness and efficiency.
Automatically generating SARs or adapting thresholds without human oversight is inconsistent with regulatory expectations. Human review and governance remain essential components of AML compliance.
NEW QUESTION # 33
The Wolfsberg Group's 2012 "Principles (or Private Banking" established that.
- A. private banks need to better coordinate and align their global AML control environment strategies.
- B. private banks agree that transparency of client beneficial ownership Is necessary and appropriate.
- C. risk based approaches are insufficient to address the heightened risk presented through private banking
- D. due diligence requirements tor private banking customers are necessary to prevent predicate offenses.
Answer: B
NEW QUESTION # 34
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