CAMS-FCI Online Practice Questions and Answers
Which are some of the negative impacts from illegal wildlife trade and environmental crimes? (Select Two.)
A. Barriers to banking by low income population
B. Loss of potential tax proceeds
C. Public health consequences
D. Threats to biodiversity
E. Threats to a country's political stability
A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?
A. The provision of remote check deposit services
B. The provision of cash services
C. The provision of payable through accounts
D. The provision of brokerage services
How does the Financial Action Task Force (FATF) measure the effectiveness of a country's efforts to combat money laundering and terrorist financing?
A. Mutual evaluation
B. FATF Evaluation Committee
C. Basel Committee
D. Series of internal audits followed by reporting to FATF
An analyst reviews an alert for high volume Automated Clearing House (ACH) activity in an account. The analyst's initial research finds the account is for a commercial daycare account that receives high volumes of large government-funded ACH transactions to support the programs. The account activity consists of checks (cheques) made payable to individual names in varying dollar amounts. One check indicates rent to another business.
An Internet search finds that the daycare company owner has previous government-issued violations for safety and classroom size needs, such as not having enough chairs and tables per enrollee. These violations were issued to a different daycare name.
Simultaneous to this investigation, another analyst sends an email about negative news articles referencing local child/adult daycare companies misusing governmental grants. This prompts the financial institution (Fl) to search all businesses for names containing daycare' or "care*. Text searches return a number of facilities as customers at the Fl and detects that three of these businesses have a similar transaction flow of high volume government ACH funding with little to no daycare expenses.
During the investigation, new suspicious patterns and trends related to check cashing are observed. The Fl decides to conduct a training to ensure that 1) the AML program is robust and 2) the training program is relevant and appropriate. Which parties should be trained on emerging trends and red flags? (Select Two.)
A. Financial crimes investigation unit
B. Loan department
C. Branch personnel
D. Senior management
E. The board of directors
During a review of the accounts related to Richard Aston, an investigator notices a high number of incoming payments from various individuals.
They also notice that these incoming payments typically occur during large sporting events or conferences. As a result of the account review, of which illegal activity does the investigator have reasonable grounds to suspect Richard Aston?
A. Embezzling from the hotel
B. Aftermarket sales of entertainment admission tickets
C. Human trafficking
D. Sports betting
Which reputations risk consequence could a financial entity face for violating AML laws?
A. Loss of high-profile customers
B. Seizure of assets
C. Increased audit costs to monitor behavior
D. Monetary penalties
During onboarding al Private Bank A, client C indicated that the account would be initially funded with a transfer from Bank B totaling 50 million USD. On which source of funds should Bank A conduct additional scrutiny? (Select Two.)
A. Client's verified employment income
B. Third-party transfer
C. Client's overall wealth
D. Transfer from Bank B
E. Documented sale of client properties
Potentially suspicious activity following an increase in the volume of transactions by an import company included outgoing wires to Indonesia and Uganda referencing invoice numbers. Incoming funds included large cash deposits and checks/ wires from pet stores, breeders, and private individuals. What financial crime might the bank reference in the SAR/STR?
A. Tax evasion scheme
B. International drug trafficking
C. Illegal wildlife trade
D. Black market peso exchange
An investigator is reviewing an alert for unusual activity. System scanning detected a text string within a company customer's account transactions that indicates the account may have been used for a drug or drug paraphernalia purchase Based on the KYC profile, the investigator determines the customer's company name and business type are marketed as a gardening supplies company. The investigator reviews the account activity and notes an online purchase transaction that leads the investigator to a website that sells various strains of marijuana. Additional account review detects cash deposits into the account at the branch teller lines, so the investigator reaches out to the teller staff regarding the transactions. The teller staff member reports that the business customers have frequently deposited cash in lower amounts. The teller, without prompting, adds that one of the transactors would occasionally smell of a distinct scent of marijuana smoke.
Which are the best next steps for the investigator to take? (Select Three.)
A. Review the customer's transaction history.
B. Request information from the internet service provider who hosts the website.
C. Check internal KYC information.
D. Research other customer accounts for transactions to the same website. E Conduct adverse media and open-source searches on the customer's background.
E. Identify if the customer has opened accounts in an urban city area.
A financial institution (Fl) has considered the available relevant factors in a transaction and has determined it will file a SAR^STR. Which is needed to support the contents of the report to the financial intelligence unit?
A. Definitive proof that suspicious activity occurred
B. Enough circumstantial evidence about the suspicious activity for a criminal proceeding
C. No factual description of the suspicious activity
D. Low evidentiary threshold about the suspicious activity