Acams CAMS Quiz 5 Topic 1 Questions 21-25

Question: 1

A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history. When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale. What should the compliance officer do next?

AInvestigate these unusual transactions further

BContact the local FIU for advice

CFile an STR with the competent authorities

DDocument reasons for not filing a STR

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Question: 2

After an institution files an STR with regard to a particular account, a law enforcement agent requests the institution to keep the account open until advised otherwise by law enforcement.

What steps should the institution take?

AThe institution should close the account in order not to be caught in the middle of a law enforcement investigation

BThe institution should follow the request of the law enforcement agent and keep the account open

CThe institution should request a written letter From the law enforcement ( agency signed by an appropriate authorized signature

DThe institution should keep the account open only if doing so comports with the bank's own AML procedures

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Question: 3

An anti-money laundering expert is hired by a new Internet bank to assess the money laundering threat to the bank. What is the most important recommendation for the expert to make given it is an on-line bank?

AThe bank should limit the amount of money which can be processed per transaction

BThe bank should ensure that prospective new customers can be properly identified

CThe bank should set up automated programs to analyze transactions for money laundering activity

DThe bank should ensure that a firewall is set up to protect the transactions

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Question: 4

What are some red flags pertaining to potentially suspicious transactions by a customer? Choose 3 answers

AHaving multiple addresses and/or moving frequently

BHaving a commercial account with cash deposits

CHave a common address with several other bank clients

DHaving multiple individuals use the ATM card connected with the account m different cities

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Question: 5

Which AML standards have force of law?

AStandards as defined in the Third European Union Money Laundering Directive (2005/60/EC)

BStandards as defined by the United Nations (UN)

CStandards as defined by World Bank / International Monetary Fund (IMF)

D40 Recommendations

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Acams CAMS Quiz:5 Topic:1 Questions:21-25