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CAMS Exam All Possible Questions and Answers with complete solution
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CAMS Exam All Possible Questions and Answers with complete solution
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CAMS Exam All Possible Questions and CorrectAnswers with complete solution
1.What is money laundering?: taking CRIMINAL proceeds and disguising
their illegal sources to USE the funds for LEGAL or ILLEGAL acts.
2.Give an example of the SECOND stage of money laundering.: Layering - Electronically moving funds between countries; moving funds between financial institutions; and converting cash placed into the system into monetary instruments.
3.Give an example of the THIRD stage of money laundering.: Integration - Purchasing luxury assets; and investing in business enterprises.
4.Give an example of the FIRST stage of money laundering.: Placement -
Co-mingling ILLEGITIMATE and LEGITIMATE funds; foreign exchange transactions with illegal funds; and depositing small amounts of cash into multiple accounts.
5.What does the (Sally Yates - Then-Deputy Attorney General of the Depart-
ment of Justice) Yates memo say?: It reminds prosecutors that criminal and civil corporate misconduct investigations should also focus on the individuals who perpetrated the wrongdoing.
6.What are some indicators of money laundering using electronic funds transfers?: Funds transfers to or from a financial secrecy haven; large, incoming fund transfers from a foreign client with little or no explanation or apparent reason; and fund transfers that have no apparent link to legitimate business.
7.What is REMOTE DEPOSIT CAPTURE and what risk is associated with it?: A product offered by banks that allows customers to SCAN A CHECK AND
TRANSMIT an electronic image to the bank FOR DEPOSIT. Associated risks include ENABLING a money launderer to deposit checks without visiting the bank thus avoiding detection.
8.What are some of the money laundering RISKS pertaining to the use of Payable Through Accounts (PTAs)?: Where foreign institutions licensed in off- shore centers, each bank having its own supervision; where the respondent bank (the foreign bank) fails to conduct adequate customer due diligence; and where the sub-account
holders have currency deposit and withdrawal privileges.
9.What is a money laundering RISK pertaining to the use of
CONCENTRATION ACCOUNTS?: The fact that CUSTOMER IDENTIFYING
INFORMATION MAY NOT BE INCLUDED, making the audit trail difficult or
impossible to follow.
10.What is a PEP or Politically Exposed Person, and what is the PRIMARY
RISK in dealing with a PEP?: A person who has or has had a prominent gov- ernment or quasi-public position in a country. The PRIMARY RISK is that THEIR SOURCE OF FUNDS MAY BE FROM CORRUPTION. .What is structuring?: Taking a large cash deposit and breaking it into smaller amounts deposited into separate banks, accounts or on separate days to avoid currency transaction reports.
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