Acams CAMS Quiz 13 Topic 1 Questions 61-65

Question: 1

What are some of the shortcomings in using letters regulatory? Choose 3 answers

AThey can be time-consuming

BThey are based on a pre-existing mutual treaty between the countries

CThey are usually restricted to obtaining evidence that can be used for prosecution and other judicial proceedings

DThey must be approved in advance by the countries judicial authorities

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Question: 2

When and how should an institution appraise the AML risk of a newly developed product?

Choose 3 answers

AThe institution should request the Compliance Officier to review and evaluate the AML risk prior to the product going live

BThe institution should roll the product out on a preliminary basis to determine what risks develop with regard to the product

CThe institution should review previous administrative actions to determine if the product has created problems for other institutions

DThe institution should evaluated where, how and to what extent the product is going to be used

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Question: 3

Which statement is true about banking regulatory agencies having the authority to obtain information from regulated institutions?

AThe regulatory agencies may only obtain information from the regulated institution's books and records by virtue of a search warrant

BA search warrant may be substituted by a court subpoena compelling the institution to produce the information to the regulatory agency

CThe agencies authority to conduct examinations negates the need for a warrant or subpoena

DIf a regulatory agency intends to prosecute a regulated institution, a warrant or subpoena must first be granted before the information can be obtained

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Question: 4

Which action should be taken regarding a particular account once suspicious activity is reported by the institution?

ANotify the client that the transaction has been reported

BFreeze the funds pending notification from the competent authority

CSecure all supporting documentation

DImmediately close the account

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Question: 5

A compliance officer is looking to update an institution's private bank procedures. What should be included as recommended by the Wolfsberg AML Principles on Private Banking?

AApproval of Politically Exposed Persons (PEPs) by at least one person other than the relationship manager

BDedicated automated AML monitoring of client activity

CReview of client files annually if there are unusual transactions

DThe institution's senior management has primary responsibility for the relationship

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Acams CAMS Quiz:13 Topic:1 Questions:61-65