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ACAMS Practice Exam | CAMS Certification Questions
and Answers [Verified Answers] Plus Rationales | Latest
2026/27
1.
What is the primary purpose of Anti-Money Laundering (AML) regulations?
A. Increase bank profits
B. Prevent financial crimes and illegal fund movement
C. Promote international trade
D. Reduce taxes
Answer: B
Rationale: AML laws are designed to detect and prevent illicit financial
flows.
2.
Which stage of money laundering involves introducing illegal funds into the
financial system?
A. Integration
B. Layering
C. Placement
D. Structuring
Answer: C
Rationale: Placement is the initial stage where illicit funds enter the
system.
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3.
Layering is best described as:
A. Spending illegal money
B. Creating complex transactions to hide origin
C. Depositing cash
D. Filing reports
Answer: B
Rationale: Layering obscures the audit trail through multiple
transactions.
4.
Integration refers to:
A. Depositing funds
B. Reintroducing laundered funds as legitimate
C. Breaking transactions
D. Reporting suspicious activity
Answer: B
Rationale: Integration makes illicit funds appear legitimate.
5.
What does KYC stand for?
A. Know Your Cash
B. Keep Your Customer
C. Know Your Customer
D. Know Your Compliance
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Answer: C
Rationale: KYC identifies and verifies customer identity.
6.
Which document verifies identity?
A. Utility bill
B. Passport
C. Bank statement
D. Invoice
Answer: B
Rationale: A passport is a primary government-issued ID.
7.
What is Customer Due Diligence (CDD)?
A. Ignoring small accounts
B. Assessing customer risk and identity
C. Filing taxes
D. Closing accounts
Answer: B
Rationale: CDD evaluates customer risk profiles.
8.
Enhanced Due Diligence (EDD) is required for:
A. Low-risk customers
B. High-risk customers
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C. All customers
D. Employees only
Answer: B
Rationale: EDD applies to higher-risk individuals/entities.
9.
A Politically Exposed Person (PEP) is:
A. A bank employee
B. An individual with prominent public functions
C. A criminal
D. A regulator
Answer: B
Rationale: PEPs pose higher corruption risk.
10.
Which organization sets global AML standards?
A. IMF
B. World Bank
C. Financial Action Task Force (FATF)
D. WTO
Answer: C
Rationale: FATF develops AML/CFT recommendations.
11.
Suspicious Activity Reports (SARs) are filed when:
ACAMS Practice Exam | CAMS Certification Questions
and Answers [Verified Answers] Plus Rationales | Latest
2026/27
1.
What is the primary purpose of Anti-Money Laundering (AML) regulations?
A. Increase bank profits
B. Prevent financial crimes and illegal fund movement
C. Promote international trade
D. Reduce taxes
Answer: B
Rationale: AML laws are designed to detect and prevent illicit financial
flows.
2.
Which stage of money laundering involves introducing illegal funds into the
financial system?
A. Integration
B. Layering
C. Placement
D. Structuring
Answer: C
Rationale: Placement is the initial stage where illicit funds enter the
system.
,© Academic_Excellence
3.
Layering is best described as:
A. Spending illegal money
B. Creating complex transactions to hide origin
C. Depositing cash
D. Filing reports
Answer: B
Rationale: Layering obscures the audit trail through multiple
transactions.
4.
Integration refers to:
A. Depositing funds
B. Reintroducing laundered funds as legitimate
C. Breaking transactions
D. Reporting suspicious activity
Answer: B
Rationale: Integration makes illicit funds appear legitimate.
5.
What does KYC stand for?
A. Know Your Cash
B. Keep Your Customer
C. Know Your Customer
D. Know Your Compliance
,© Academic_Excellence
Answer: C
Rationale: KYC identifies and verifies customer identity.
6.
Which document verifies identity?
A. Utility bill
B. Passport
C. Bank statement
D. Invoice
Answer: B
Rationale: A passport is a primary government-issued ID.
7.
What is Customer Due Diligence (CDD)?
A. Ignoring small accounts
B. Assessing customer risk and identity
C. Filing taxes
D. Closing accounts
Answer: B
Rationale: CDD evaluates customer risk profiles.
8.
Enhanced Due Diligence (EDD) is required for:
A. Low-risk customers
B. High-risk customers
, © Academic_Excellence
C. All customers
D. Employees only
Answer: B
Rationale: EDD applies to higher-risk individuals/entities.
9.
A Politically Exposed Person (PEP) is:
A. A bank employee
B. An individual with prominent public functions
C. A criminal
D. A regulator
Answer: B
Rationale: PEPs pose higher corruption risk.
10.
Which organization sets global AML standards?
A. IMF
B. World Bank
C. Financial Action Task Force (FATF)
D. WTO
Answer: C
Rationale: FATF develops AML/CFT recommendations.
11.
Suspicious Activity Reports (SARs) are filed when:
