Acams CAMS Quiz 3 Topic 4 Questions 11-15

Question: 1

Which type of transactions present the highest risk?

AWire transfers from a publicly listed company

BPayroll payments

CSocial insurance payments

DForeign exchanges

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Question: 2

A prospective AML officer comes highly recommended by a bank's up-stream correspondent institution of similar size and make-up, located in a different city in the same country. The bank is interested in hiring the individual. What should be the next step taken by the Board of Directors?

ADo a thorough background check

BConfer with its regulatory agency to determine whether it is appropriate to hire the person

CHire the individual, relying on the recommendation of its correspondent

DHire the individual on a probationary basis so that the institution can determine if the individualis sufficiently experienced and capable

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Question: 3

Which two aspects of the security broker dealer industry increase its exposure to money laundering? Choose 2 answers

AThe routine use of wire transfers from, to or through multiple jurisdictions

BThey easy conversion of holdings to cash with significant loss of principal

CDisposing of cash through securities purchases

DFast paced transactions conducted electronically

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Question: 4

In which type of banking transaction is price manipulation, as a form of money laundering, a common practice?

ARedeeming an annuity

BSending a wire transfer

CIssuing a letter of credit

DSubscribing to a cash management account

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Question: 5

What is a criterion for FATF membership?

AThe country should be democracy

BThe country should be a member of a FATF-style regional body

CThe country should have already implemented all of the FATF Recommendations

DThe country should have already implemented the standards of the European Union Directives

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Acams CAMS Quiz:3 Topic:4 Questions:11-15