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ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Sample Questions (Q406-Q411):
NEW QUESTION # 406
What are the key anti-financial crime (AFC) regulatory bodies in the United States and the European Union and their respective roles?
- A. The US Federal Reserve and the European Central Bank oversee money laundering and sanctions
- B. FinCEN and ESMA issue sanctions and combat money laundering
- C. The Office of Foreign Assets Control (OFAC) enforces US sanctions, while FinCEN focuses on money laundering. In the EU, the European Commission sets AML/CFT regulations, with enforcement by member states coordinated by the AML Authority
- D. The SEC and the EBA are the main bodies enforcing AML and sanctions
Answer: C
Explanation:
In the United States, anti-financial crime responsibilities are divided between specialized authorities. The Financial Crimes Enforcement Network (FinCEN) administers and enforces the Bank Secrecy Act (BSA) and focuses on anti-money laundering and counter-terrorist financing.
The Office of Foreign Assets Control (OFAC) administers and enforces US economic and trade sanctions.
In the European Union, the European Commission is responsible for proposing AML/CFT legislation, such as the AML Directives and the AML Regulation. Enforcement is carried out by individual EU member states through national supervisory and law enforcement authorities, with coordination increasingly provided by the EU Anti-Money Laundering Authority (AMLA).
Other bodies such as the EBA and ESMA play supporting supervisory or standard-setting roles but are not the primary sanctions authorities.
NEW QUESTION # 407
What are the most effective measures to boost risk appetite awareness across an organization after a risk appetite has been set and a risk appetite statement (RAS) has been drafted? (Select Three.)
- A. Integrate misalignment with risk appetite into internal reporting procedures
- B. Describe risk controls for business colleagues
- C. Provide training to staff so they understand the role risk appetite and its limits play in the safe conduct of business
- D. Embed the risk appetite into everyday processes and governance
- E. Train all managers on the importance and benefits of "good" risk-taking
Answer: A,C,D
Explanation:
Once a risk appetite and Risk Appetite Statement (RAS) are established, organizations must ensure they are understood, embedded, and actively monitored. Regulatory guidance emphasizes that a risk appetite is effective only if it influences daily decision-making.
Providing training to staff ensures employees understand risk boundaries and how their actions align with the organization's risk tolerance. Embedding risk appetite into processes and governance, such as approvals, escalation thresholds, and performance management, ensures it is operationalized rather than theoretical.
Finally, integrating breaches or misalignment with risk appetite into internal reporting allows senior management to monitor adherence and take corrective action when necessary.
Training managers on "good" risk-taking may be useful culturally but is not a core regulatory expectation. Merely describing controls does not ensure awareness or behavioral alignment.
NEW QUESTION # 408
Which persons must always comply with all Office of Foreign Assets Control (OFAC) regulations? (Select Three.)
- A. US citizens regardless of location
- B. US incorporated entities and their foreign branches
- C. Permanent US resident aliens regardless of location
- D. Non-US financial institutions that offer accounts in USD regardless of location
- E. Merchants that offer US-origin goods for sale regardless of location
Answer: A,B,C
NEW QUESTION # 409
An organization is developing a comprehensive anti-money laundering (AML) framework. Which of the following statements best describes the relationship between AML policies and procedures?
- A. Policies are detailed instructions for specific processes. Procedures are an overarching framework. Neither policies nor procedures are mandatory for knowledge and adherence.
- B. Policies are broad guidelines. Procedures are detailed instructions for specific processes. Only procedures are mandatory for knowledge and adherence.
- C. Policies define the principles of an organization and influence the drafting of procedures.
Procedures are detailed instructions for specific processes. - D. Policies are detailed instructions for specific processes. Procedures are an overarching framework. Both policies and procedures are mandatory for knowledge and adherence.
Answer: C
Explanation:
Policies outline the guiding principles and objectives of an organization's AML framework, setting the tone for compliance. Procedures translate these policies into detailed, actionable steps that staff must follow. Both are essential for effective AML compliance.
NEW QUESTION # 410
A law enforcement action alleged that on several trading days over the course of two months, defendants engaged in a series of copper gold, crude oil. and natural gas futures transactions on an electronic trading platform One defendant repeatedly bought future contracts at low prices from the other, and then immediately sold them back at higher prices. As a result, one defendant effectively pocketed the same amount as the other lost even though there were no changes in the open positions held by either defendant. What is a name for this typology?
- A. Short position
- B. Wash trading
- C. Bid-ask spread
- D. Reverse flip
Answer: B
NEW QUESTION # 411
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