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| Section | Weight | Objectives |
|---|
| Topic 1: Building and Managing Anti-Financial Crime Compliance Programs | 28% | - Program framework and policies
- 1. Risk assessment and risk-based approach
- 2. Policies, procedures and controls design
- Customer due diligence and know-your-customer
- 1. politically exposed persons and high-risk clients
- 2. CDD, EDD, beneficial ownership identification
- Training, awareness and internal communication - Audit, testing and continuous improvement - Monitoring, reporting and record keeping
- 1. Transaction monitoring and alert management
- 2. Legal record retention requirements
- 3. Suspicious activity reporting (SAR/STR)
|
| Topic 2: Global Anti-Financial Crime Frameworks, Governance and Regulations | 24% | - International standards and bodies
- 1. Basel Committee, Wolfsberg Group, UN conventions
- 2. FATF 40 Recommendations
- Governance, accountability and ethics
- 1. Ethical obligations and professional standards
- 2. Roles of board, senior management and compliance function
- Regional and national regulations
- 1. EU AML Directives
- 2. USA PATRIOT Act and extraterritorial laws
|
| Topic 3: Understanding Risks and Methods of Financial Crime | 26% | - Sanctions regimes and compliance risks
- 1. Risk identification and mitigation
- 2. UN, EU, OFAC frameworks
- Terrorism financing and proliferation financing
- 1. Distinctions from money laundering
- 2. Sources and mechanisms
- Financial crime risks and consequences
- 1. Institutional, individual, economic and social impacts
- Money laundering stages and techniques
- 1. Methods across financial sectors and businesses
- 2. Placement, layering, integration
|
| Topic 4: Tools, Technologies and Investigations | 22% | - Investigation processes and evidence handling
- 1. Case management and escalation
- 2. Cooperation with authorities and information sharing
- Technology and systems
- 1. Monitoring systems, screening tools, data analytics
- 2. Cryptoasset and virtual asset compliance
- Remediation and response
- 1. Corrective actions and regulatory engagement
|
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ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Sample Questions (Q411-Q416):
NEW QUESTION # 411
An oil exploration company based in France does business with oil refineries in Iran, which is subject to comprehensive Office of Foreign Assets Control (OFAC) sanctions. What type of OFAC sanctions should be imposed against the French company?
- A. Sectoral
- B. Country-based
- C. Secondary
- D. List-based
Answer: C
NEW QUESTION # 412
According to FinCEN, which red flags within a bank account may, taken together, be indications of modern slavery, human trafficking, and exploitation? (Select Two.)
- A. Incoming fund transfers from third-party payment processors, with limited originator information
- B. Frequent payments for online advertisements or non-local classified ads
- C. Large amounts of cash payments to migrant agricultural workers
- D. Transactional activity with a registered virtual currency exchange
Answer: A,B
NEW QUESTION # 413
Which criminal activities could possibly serve as a predicate offense to financial crimes or money laundering activity? (Select Three.)
- A. Bribery or corruption
- B. Organized crime or racketeering
- C. Fraud
- D. Arson
- E. Assault
Answer: A,B,C
Explanation:
Predicate offenses are crimes that generate proceeds which may subsequently be laundered. FATF standards and national AML laws define a wide range of serious crimes as predicate offenses.
Bribery and corruption are among the most common predicate offenses, often involving large illicit payments that require laundering to disguise their origin. Fraud, including financial, consumer, and corporate fraud, is another primary source of illicit proceeds and is universally recognized as a predicate offense.
Organized crime and racketeering encompass coordinated criminal activities designed to generate ongoing illegal income, making them central predicate offenses under AML frameworks.
While arson may be considered a serious crime in some jurisdictions, and assault is generally not associated with financial gain, AML regimes focus primarily on crimes that generate substantial proceeds. Therefore, bribery, fraud, and organized crime are the most consistently recognized predicate offenses across jurisdictions.
NEW QUESTION # 414
Which control helps reduce the risk of employee involvement in money laundering?
- A. Eliminating internal audits
- B. Reducing compliance training frequency
- C. Segregation of duties and employee screening
- D. Allowing unrestricted override authority
Answer: C
Explanation:
Segregation of duties limits opportunities for employees to manipulate transactions or conceal suspicious activity. Employee background screening, oversight, and ethical standards further reduce internal collusion risks and strengthen the integrity of AML compliance programs.
NEW QUESTION # 415
Which measures should be implemented to facilitate collaboration among different risk management functions to enhance an organization's anti-financial crime (AFC) program? (Select Three.)
- A. Establish a reward program among risk management functions to encourage proactive controls
- B. Have senior management accountability for AFC failures
- C. Establish a robust framework for continuous threat intelligence sharing
- D. Develop common metrics and key performance indicators
- E. Develop cross-functional training programs on AFC risks, management strategies, and related technologies
Answer: C,D,E
Explanation:
An effective anti-financial crime (AFC) program relies on strong collaboration across risk management functions, including AML, fraud, sanctions, cybersecurity, and operational risk. Regulatory guidance encourages integrated approaches to managing financial crime risk.
A framework for continuous threat intelligence sharing allows different functions to exchange insights on emerging risks, typologies, and vulnerabilities, improving the organization's ability to detect and respond to threats holistically.
Cross-functional training programs help ensure that staff across risk functions understand AFC risks, regulatory expectations, and the tools used to manage them. This fosters consistency and breaks down silos within the organization.
Developing common metrics and key performance indicators (KPIs) aligns objectives across functions and enables management to assess program effectiveness consistently.
While senior management accountability is essential for governance, it does not directly facilitate collaboration among risk functions. Reward programs are not standard or recommended measures in regulatory guidance for enhancing AFC collaboration.
NEW QUESTION # 416
......
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