Acams CAMS-FCI Quiz 1 Topic 3 Questions 1-5

Question: 1

Which are primary purposes of Financial Action Task Force {FATF)-Style Regional Bodies? (Select Two.)

AActing as a prudential regulatory body for financial institutions

BProviding due diligence for foreign correspondent banks

CProviding expertise and input in FATF policy-making

DImposing special measures for non-cooperative jurisdictions

EPromoting effective implementation of FATF recommendations

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Question: 2

During a review, an analyst notices discrepancies between a customer's nature of business listed on the business registry and what was stated on the customers application. The analyst should:

Aclarify discrepancies noted in the customer's declared profile given the downstream impact on the risk assessment.

Bclose the review as there is no adverse news in the public domain.

Creview all documents for whether certified true copies are submitted.

Daccept discrepancies in the information given the onboarding team did not flag any issue.

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Question: 3

A KYC specialist from the first line of defense at a bank initiates an internal escalation based on a letter of credit received by the bank.

MEMO

To: Jane Doe. Compliance Manager, Bank B From: Jack Brown, KYC Specialist, Bank B RE: Concerning letter of credit

A letter of credit (LC) was received from a correspondent bank. Bank

Ain Country A. in Asia with strict capital controls, providing guarantee of payment to Bank B's client for the export of 10 luxury cars located in Country B. located in Europe. Bank A's customer is a general in the army where Bank A is headquartered.
The information contained in the LC is as follows:
* Advising amount per unit 30.000.00 EU *10 units of BMW
* Model IX3
* Year of registration: 2020
Upon checks on Bank B's client, the exporter mentioned that the transactions were particularly important, and a fast process would be much appreciated in order to avoid reputational damage to the firm and the banks involved in the trade finance process. The exporter has a longstanding relationship with Bank B and was clearly a good income generator. The exporter indicated that, as a general, the importer was trustworthy.
The relationship manager <RM) was contacted to conduct a full review of the exporter and to conduct a site visit.
Feedback from the RM:
The RM contacted the exporter for a client courtesy visit, but it was rearranged four times as the exporter kept cancelling the appointments. When the exporter was finally pinned down for an interview, employees were reluctant to provide clear answers about the basis of the transaction. The employees were evasive when asked about the wider business and trade activity in the country.
Findings from the investigation from various internal and external sources of information:
* There were no negative news or sanctions hits on the exporter company, directors, and shareholders.
* The registered address of the exporting business was a residential address.
* The price of the cats was checked and confirmed to be significantly below the market price of approximately 70,000 EU, based on manufacturer's new price guide.
* The key controllers behind the exporting company, that is the directors and
During the investigation, the investigator determines that a nephew of the general.....

Ashould be treated well to avoid reputational damage to the bank

Bis a high-net-worth individual

Cshould be flagged as a senior PEP.

Dis a trustworthy source.

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Question: 4

How does the Asian/Pacific Financial Action Task Force -Style Regional Body help its members implement recommendations from the FATF? (Select Two.)

APromotes laws that allow judicial challenges to seizure orders by an administrative body

BEndorses regulations that define money laundering based on the model laws issued by the respective member states

CFacilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions

DEncourages cooperative AML efforts in the region

ERequires members to maintain lists of regional money laundering and terrorists financing issues relevant to their region

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Question: 5

During transaction monitoring. Bank A learns that one of their customers. Med Supplies 123. is attempting to make a payment via wire totaling 382,500 USD to PPE Business LLC located in Mexico to purchase a large order of personal protective equipment. specifically surgical masks and face shields. Upon further verification. Bank A decides to escalate and refers the case to investigators.

Bank A notes that, days prior to the above transaction, the same customer went to a Bank A location to wire 1,215,280 USD to Breath Well LTD located in Singapore. Breath Well was acting as an intermediary to purchase both 3-ply surgical masks and face shields from Chin

a. Bank A decided not to complete the transaction due to concerns with the involved supplier in China. Moreover, the customer is attempting to send a third wire in the amount of 350,000 USD for the purchase of these items, this time using a different vendor in China. The investigator must determine next steps in the investigation and what actions, if any. should be taken against relevant parties.

During the investigation, Bank A receives a USA PATRIOT Act Section 314(a) request related to Med Supplies 123. Which steps should the investigator take when fulfilling the request? (Select Three.)

AExit the relationship with the business since it appears that customer is under investigation.

BDo not respond to Financial Crimes Enforcement Network (FinCEN) if the requested information is not present in the financial institution's system of records.

CReview the account(s) activity and proactively file a SAR/STR using the 314(a) request as the basis for the filing.

DReport to Financial Crimes Enforcement Network (FinCEN) that a match was found without revealing any other details.

EReport back to the Financial Crimes Enforcement Network (FinCEN) within 15 days of receipt of the request via a secure internet website.

FSearch its records expeditiously to determine whether it maintains(ed) any accounts for the subject(s) listed in the request.

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Acams CAMS-FCI Quiz:1 Topic:3 Questions:1-5