ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Sample Questions:

1. A financial institution plans to implement adverse media screening with Artificial Intelligence (AI)/Machine Learning (ML) capabilities During testing, the system produces high volumes of irrelevant news articles for review. What is the best way to address this issue?

A) Narrow the media sources to avoid unrelated articles
B) Rely on manual filtering by investigators
C) Increase the frequency of updates to media sources
D) Adjust AI/ML models to focus on high-risk keywords/phrases from reputable media sources

2. An annual risk assessment includes inherent risk, effectiveness of controls, and residual risk. The inherent risk is assessed as "moderate," and the effectiveness of controls is "less than satisfactory." What would the residual risk conclusion most likely be?

A) "Low," because controls would lower the risk
B) "Moderate," because the risk conclusions for specific areas may be increased
C) "High," because weak controls would result in increased residual risk
D) "Medium," because weak controls would result in the residual risk remaining unchanged

3. The role of FATF-style regional bodies (FSRBs) is to: (Select Three.)

A) offer mutual evaluation and follow-up processes for members in their FSRB Jurisdiction.
B) identify and address any gaps in the AML/CFT policies for members outside of their FSRB jurisdiction.
C) set and amend the FATF 40 Recommendations for members in their FSRB jurisdiction.
D) identify and address the current financial crime trends through the issuance of typologies originating in members outside of their FSRB's Jurisdiction.
E) coordinate technical assistance for members in their FSRB jurisdiction
F) provide AM L/C FT technical assistance needed by members in their FSRB junsdiction.

4. Ateam overseeing the governance and effectiveness of a bank's transaction monitoring approachshould implement which strategies? (Select Two.)

A) Periodic and ad hoc cooperation with the legal team to appropriately investigate and monitor the transactions of subjects of subpoenas or government inquiries.
B) Periodic review of the transaction monitoring scenarios and their productivity to ensure that appropriate AML typologies are reflected.
C) Periodic review of suspicious activity reports (SARs) filed with FinCEN to determine whether any should be withdrawn.
D) Periodic review of client profiles to ensure that the most up-to-date information is on file for high- risk clients in line with the bank's internal policies and procedures.

5. According to the Financial Action Task Force (FATF) methodology, which situations would require a financial institution (FI) to consider filing a suspicious activity report?

A) A FI is unable to verify the relevant customer due diligence documents.
B) A transaction involves funds exchanged from crypto to fiat currencies.
C) A FI identifies the payer is a dealer in precious metals or stones.
D) A beneficiary of a transaction is a politically exposed person.

Solutions: