ACAMS-PREP-MOCK EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ (BRAND NEW!!)
What is the term for trading through multiple accounts, where an individual
generates offsetting profits and losses and transfers of positions through accounts
that do not appear to be commonly controlled? - CORRECT ANSWER ✔✔- Wash
Trading
In performing a risk analysis, which factor(s) should a financial institution review?
- CORRECT ANSWER ✔✔- Its customer base, location, products and services.
How should a financial institution deter money laundering through new accounts?
- CORRECT ANSWER ✔✔- Document the identity of the party opening the
account.
Determine the beneficial owners of the account.
Seek to determine the the source of deposited funds.
A commission regotorie would be used in which gateway to obtain information
from another country? - CORRECT ANSWER ✔✔- An FIU request under the
EGMONT principles
1
,What are the European Union Directives on Money Laundering? - CORRECT
ANSWER ✔✔- They require members to implement certain laws to prevent
money laundering.
What should law enforcement provide when asking an institution to keep an
account open? - CORRECT ANSWER ✔✔- a written request on government agency
letterhead with the appropriate signature.
The Wolfsberg Principles for Private Banking list circumstances that would require
additional due diligence, including activities that involve which three of these
choices? - CORRECT ANSWER ✔✔- High risk countries
High risk activities
Public officials, including those who had positions of public trust.
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? - CORRECT ANSWER ✔✔- Approval of PEPs by at least one
person other than the relationship manager.
Which three circumstances are indicators for defining a customer as required
additional diligence according to the Wolfsberg Principles on Private Banking? -
CORRECT ANSWER ✔✔- Persons residing in and having funds from countries with
inadequate AML standards.
Persons engaged in business activities known to be susceptible to money
laundering
2
,Persons who receive funds from correspondent banking relationship
What is the Black Market Peso Exchange? - CORRECT ANSWER ✔✔-
Which customer transaction with a securities dealer would indicate the highest
suspicion of money laundering? - CORRECT ANSWER ✔✔- High level of account
activity with very low levels of securities transactions.
What was cited by the Wolfsberg Group in its Statement on the Suppression of
the Financing of Terrorism as being vulnerable to terrorist financing? - CORRECT
ANSWER ✔✔- Alternative remittance (Hawala)
Which three are principles found in the document "Principles of information
Exchange between Financial Intelligence Units (FIUs)"? - CORRECT ANSWER ✔✔-
The Exchange of information between FIUs should take place as informally and as
rapidly as possible and with no perquisites, while guaranteeing privacy and
confidentiality of the shared data.
The EGMONT principle of free exchange of information at the FIU level should be
possible on the basis of reciprocity, including spontaneous exchange.
It should be possible for communication between FIUs to take place directly and
without intermediaries.
A customer comes into a financial institution and deposits a large amount of cash.
He has never done that before. When asked about the deposit, he indicates he
recently sold a used car and received cash.
3
, He does not trust forms of payment and is wary of counterfeit money orders.
What should the bank do? - CORRECT ANSWER ✔✔- While the explanation
appears plausible, the institution should, for a period of time, monitor the
account for cash transactions and suspicious activity.
Which type of transactions present the highest risk? - CORRECT ANSWER ✔✔-
foreign exchanges
To guard against acquisition or control of a financial institution by money
launderers or their associates, what should supervisory agencies require? -
CORRECT ANSWER ✔✔- Thorough due diligence on prospective owners
What are three indicators of money laundering associated with using electronic
funds transfers? - CORRECT ANSWER ✔✔- Funds transfers to or from financial
secrecy haven without an apparent business reason.
Funds transfers are received or sent from the same person to or from different
accounts.
Payments or receipts with no apparent link to legitimate contract goods or
services
On who does the ultimate responsibility for an institution's anti-money laundering
program rest? - CORRECT ANSWER ✔✔- FI board of directors.
Federal law requires all U.S. financial institutions to secure and maintain all
records and supporting documentation used in suspicious activity reporting for
how many years? - CORRECT ANSWER ✔✔- 5 years
4
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ (BRAND NEW!!)
What is the term for trading through multiple accounts, where an individual
generates offsetting profits and losses and transfers of positions through accounts
that do not appear to be commonly controlled? - CORRECT ANSWER ✔✔- Wash
Trading
In performing a risk analysis, which factor(s) should a financial institution review?
- CORRECT ANSWER ✔✔- Its customer base, location, products and services.
How should a financial institution deter money laundering through new accounts?
- CORRECT ANSWER ✔✔- Document the identity of the party opening the
account.
Determine the beneficial owners of the account.
Seek to determine the the source of deposited funds.
A commission regotorie would be used in which gateway to obtain information
from another country? - CORRECT ANSWER ✔✔- An FIU request under the
EGMONT principles
1
,What are the European Union Directives on Money Laundering? - CORRECT
ANSWER ✔✔- They require members to implement certain laws to prevent
money laundering.
What should law enforcement provide when asking an institution to keep an
account open? - CORRECT ANSWER ✔✔- a written request on government agency
letterhead with the appropriate signature.
The Wolfsberg Principles for Private Banking list circumstances that would require
additional due diligence, including activities that involve which three of these
choices? - CORRECT ANSWER ✔✔- High risk countries
High risk activities
Public officials, including those who had positions of public trust.
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? - CORRECT ANSWER ✔✔- Approval of PEPs by at least one
person other than the relationship manager.
Which three circumstances are indicators for defining a customer as required
additional diligence according to the Wolfsberg Principles on Private Banking? -
CORRECT ANSWER ✔✔- Persons residing in and having funds from countries with
inadequate AML standards.
Persons engaged in business activities known to be susceptible to money
laundering
2
,Persons who receive funds from correspondent banking relationship
What is the Black Market Peso Exchange? - CORRECT ANSWER ✔✔-
Which customer transaction with a securities dealer would indicate the highest
suspicion of money laundering? - CORRECT ANSWER ✔✔- High level of account
activity with very low levels of securities transactions.
What was cited by the Wolfsberg Group in its Statement on the Suppression of
the Financing of Terrorism as being vulnerable to terrorist financing? - CORRECT
ANSWER ✔✔- Alternative remittance (Hawala)
Which three are principles found in the document "Principles of information
Exchange between Financial Intelligence Units (FIUs)"? - CORRECT ANSWER ✔✔-
The Exchange of information between FIUs should take place as informally and as
rapidly as possible and with no perquisites, while guaranteeing privacy and
confidentiality of the shared data.
The EGMONT principle of free exchange of information at the FIU level should be
possible on the basis of reciprocity, including spontaneous exchange.
It should be possible for communication between FIUs to take place directly and
without intermediaries.
A customer comes into a financial institution and deposits a large amount of cash.
He has never done that before. When asked about the deposit, he indicates he
recently sold a used car and received cash.
3
, He does not trust forms of payment and is wary of counterfeit money orders.
What should the bank do? - CORRECT ANSWER ✔✔- While the explanation
appears plausible, the institution should, for a period of time, monitor the
account for cash transactions and suspicious activity.
Which type of transactions present the highest risk? - CORRECT ANSWER ✔✔-
foreign exchanges
To guard against acquisition or control of a financial institution by money
launderers or their associates, what should supervisory agencies require? -
CORRECT ANSWER ✔✔- Thorough due diligence on prospective owners
What are three indicators of money laundering associated with using electronic
funds transfers? - CORRECT ANSWER ✔✔- Funds transfers to or from financial
secrecy haven without an apparent business reason.
Funds transfers are received or sent from the same person to or from different
accounts.
Payments or receipts with no apparent link to legitimate contract goods or
services
On who does the ultimate responsibility for an institution's anti-money laundering
program rest? - CORRECT ANSWER ✔✔- FI board of directors.
Federal law requires all U.S. financial institutions to secure and maintain all
records and supporting documentation used in suspicious activity reporting for
how many years? - CORRECT ANSWER ✔✔- 5 years
4
