Latest ACAMS CAMS-FCI Free Certification Exam Material with 102 Q&As [Q38-Q62] – IT Certification Exam Questions & Answers

NO.38 An investigator is reviewing an alert for unusual activity. System scanning detected a text string within a company customer’s account transactions that indicates the account may have been used for a drug or drug paraphernalia purchase Based on the KYC profile, the investigator determines the customer’s company name and business type are marketed as a gardening supplies company. The investigator reviews the account activity and notes an online purchase transaction that leads the investigator to a website that sells various strains of marijuana. Additional account review detects cash deposits into the account at the branch teller lines, so the investigator reaches out to the teller staff regarding the transactions. The teller staff member reports that the business customers have frequently deposited cash in lower amounts. The teller, without prompting, adds that one of the transactors would occasionally smell of a distinct scent of marijuana smoke.
Which are the best next steps for the investigator to take? (Select Three.)

Review the customer’s transaction history.

Request information from the internet service provider who hosts the website.

Check internal KYC information.

Research other customer accounts for transactions to the same website.
E Conduct adverse media and open-source searches on the customer’s background.

Identify if the customer has opened accounts in an urban city area.

Explanation
The best next steps for the investigator to take are:
A: Review the customer’s transaction history. This can help the investigator identify any patterns or anomalies in the customer’s account activity, such as changes in transaction volume, frequency, amount, source, destination, purpose, etc. The investigator can also compare the customer’s transaction history with their KYC profile and risk rating to assess if there are any discrepancies or inconsistencies.
C: Check internal KYC information. This can help the investigator verify the customer’s identity, business nature, ownership structure, expected activity, source of funds, etc. The investigator can also update or enhance the customer’s KYC information based on any new or relevant information obtained from other sources.
E:Conduct adverse media and open-source searches on the customer’s background. This can help the investigator find out if there is any negative or adverse information about the customer in public data sources, such as news articles, social media posts, blogs, forums, etc. Adverse media and open-source searches can also provide additional context and insight into the customer’s reputation, behavior, associations, etc. The other options are incorrect because:
B: Request information from the internet service provider who hosts the website is not feasible, as it may require a legal process or a court order to obtain such information. Moreover, the internet service provider may not have or disclose any useful information about the website or its owner.
D: Research other customer accounts for transactions to the same website is not relevant, as it may not provide any meaningful information about the customer under investigation. Furthermore, it may violate the privacy and confidentiality of other customers who are not related to the investigation.
F: Identify if the customer has opened accounts in an urban city area is not helpful, as it may not have any bearing on the customer’s involvement in a drug or drug paraphernalia purchase. Additionally, it may not be possible to access or verify such information without the customer’s consent or authorization.
References:
Advanced CAMS-FCI Certification | ACAMS, Section 2: Investigating Financial Crimes, page 11 Leading Complex Investigations Certificate | ACAMS, Module 3: Conducting Research and Analysis, page 6 Adverse Media Screening – Using AI to Mitigate Risk Legal requirements for adverse media screening – Thomson Reuters Electronic client due diligence | Ethics helpsheets | ICAEW
6AMLD & FATF: Where Adverse Media Screening Fits In
Free Adverse Media Check | NameScan

NO.39 A financial institution (Fl) receives an urgent request for information from the financial intelligence unit (Fl country. According to FATF recommendations, which is the best action for the FI to take?

Request an official court subpoena with details of the investigation.

Provide as much information as possible to the FIU immediately.

Establish a committee from different areas of the Fl to determine if the request should be answered.

Inform the public relations department to prepare for negative news.

ling the financing of terrorism that could imply an imminenl threat in the

NO.40 A bank’s transaction surveillance system triggers an alert for a deposit of 250.000 USO into a client’s account.
According to the bank’s KYC information, the client works for a financial advisory firm, and earns approximately 100,000 USD per year. Which actions should be taken? (Select Three.) File the suspicious transaction immediately to the financial intelligence unit.

Discard the alert as a false positive hit

Request information and documentation from the client on the background of the transaction.

Contact the client advisor to learn if he has any insight on the transaction background.

Review the alert if the deposit is made in cash.

Review the transaction background in the bank’s transaction platform.

NO.41 A client that runs a non-profit organization that aids refugees in leaving their home countries received a remittance from a money services business that was ten times the average. The client was recently detained for providing falsified passports to illegal immigrants. Which predicate offenses could be considered in the SAR/STR? (Select Two.)

Human smuggling/trafficking

Terrorist financing

Narcotics trafficking

Antiques smuggling

Tax evasion

NO.42 An investigator receives an alert documenting a series of transactions. A limited liability corporation (LLC) wired 59.000,000 USD to an overseas account associated with a state-run oil company. A second account associated with the state-run oil company wired 600,000,000 USD to the LLC. The LLC then wired money to other accounts, a money brokerage firm, and real estate purchases.
The investigator initiated an enhanced KYC investigation on the LLC. The financial institution opened the LLC account a couple of weeks prior to the series of transactions. The names associated with the LLC had changed multiple times since the account opened. A search of those names revealed relations with multiple LLCs. Public records about the LLCs did not show any identifiable business activities.
Open-source research identified mixed reports about the brokerage firm. The firm indicated it purchased mutual funds for its clients and dispensed returns to clients.
Media reports claimed the firm laundered money by holding for a fee before returning it to investors.
The investigator discovers that the bank has no records pertaining to ownership of the LLC. What would this mean for the bank and/or investigator?

The bank may not be able to file a SAR/STR without the ownership data.

The bank is out of compliance with beneficial ownership regulations.

The bank is out of compliance with CIP regulations.

The bank cannot respond to law enforcement requests without the ownership data.

NO.43 Each month the automated transaction monitoring system generates alerts based on predetermined scenarios.
An alert was generated in relation to the account activity of ABC Foundation. Below is the transaction history for ABC Foundation (dates are in DD/MM/YYYY format).

The relationship manager for ABC Foundation contacts the client to request more information on the beneficiary of the transfer in Turkey. ABC Foundation advises that this is a not-for-profit charity group called
‘Forever Free.” Which is the best next step in the investigation?

Contact the financial institution in Turkey that has a relationship with Forever Free and advise them of the investigation.

Update the customer profile to include Forever Free as the recipient of the funds.

Check the junsdiction’s list of known chanties with connections to terrorist activity.

File a SAR/STR with the new information learned about the beneficiary.

NO.44 An investigator is reviewing a case generated from the transaction monitoring system, with two large amounts of incoming remittance (IR) to an individual customer. Based on the KYC profile, the customer is a plant manager of a famous multi-national electronics manufacturing firm. As the customer has no similarly large transaction patterns for the past 2 years, the investigator sends an inquiry to the relationship manager (RM) about the nature of the transaction. The RM replies that the transaction is a consultancy fee provided from two different electronics companies with a debit note provided However, there is no detail of service provided on the debit note, and the remitters are two individuals.
Which actions should the investigator recommend to mitigate risk? (Select Two.)

Exit the relationship with the customer.

Document and maintain a file with the investigative findings.

Discuss the investigation findings with the customer.

Conduct enhanced due diligence.

Re-evaluate the customer risk profile.

NO.45 How does the Asian/Pacific Financial Action Task Force <FATF>-Style Regional Body help its members implement recommendations from the FATF? (Select Two.)

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

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

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

Encourages cooperative AML efforts in the region

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

NO.46

During a review of the accounts related to Richard Aston, an investigator notices a high number of incoming payments from various individuals. They also notice that these incoming payments typically occur during large sporting events or conferences. As a result of the account review, of which illegal activity does the investigator have reasonable grounds to suspect Richard Aston?

Embezzling from the hotel

Aftermarket sales of entertainment admission tickets

Human trafficking

Sports betting

NO.47 Law enforcement (LE) suspects human trafficking to occur during a major sporting event. LE officers asked several financial institutions (FIs) to monitor financial transactions occurring before, during, and after the event.
An investigator identified a pattern linked to a business. The business’ account received multiple even dollar deposits between midnight and 4:00 AM. They occurred each day for several days prior to the date of the sporting event. Also, large cash deposits, typically between 2,000 USD and 3,000 USD. made by a person to the business’ account occurred in many branches in the days after the sports event.
There was little information about the company. The company did not have any history of employee payroll expenses or paying taxes. Expenses from the business account included air travel and hotel expenses. Searches about the person making cash deposits showed little. An online social media platform webpage with the individual’s name showed ads for dates” and “companionship.” The Fl receives a keep open’ letter from LE for the identified account and agrees to keep the account open.
What is the Fl required to do?

Contact the client for information relating to the account.

Stop filing SAR/STR reports on the account and/or customer.

Ensure that the request includes an end date.

Notify LE immediately after new transactions.

NO.48 Which payment method for purchasing luxury items is a red flag for potential money laundering?

Personal loan

Cash

Wire transfer

Credit card

NO.49 A U.S. financial institution (Fl) receives a grand jury subpoena for a corporate client’s account. The Fl should:

request the client’s consent for the disclosure of account information.

review the corporate account’s activity and transactions.

file a SAR/STR.

provide the client with a copy of the subpoena.

NO.50 Which most likely indicates that a business email compromise attack has occurred?

A company sends a recurring payment to a new account number.

A company sends a larger-than-normal check to an existing supplier.

A company adds a new employee as an authorized signer.

A company has a new beneficial owner.

NO.51 A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?

The provision of remote check deposit services

The provision of cash services

The provision of payable through accounts

The provision of brokerage services

NO.52 An unusual spike in activity has occurred for a customer who is a supplier of aviation parts to a military force.
The customer’s current line of business is consistent with the banks records, and no adverse media hits have occurred. Which is the best reason for an investigator to continue an investigation?

The end-user is a military force.

There are no adverse media hits.

The customer is a supplier of aviation parts.

The current line of business is consistent with the bank’s records.

NO.53 Potentially suspicious activity following an increase in the volume of transactions by an import company included outgoing wires to Indonesia and Uganda referencing invoice numbers. Incoming funds included large cash deposits and checks/wires from pet stores, breeders, and private individuals. What financial crime might the bank reference in the SAR/STR?

Tax evasion scheme

International drug trafficking

Illegal wildlife trade

Black market peso exchange

NO.54 When writing or reviewing a SAR/STR, it is important to:

ensure the narrative is kept to the point; easy to read; and addresses the who, what, when, where, why, and how.

ensure that the narrative is detailed with all available information so that law enforcement can decide what is relevant.

keep the introduction brief but ensure all relevant transactions, account numbers, and suspect names are listed in the conclusion summary.

avoid mentioning suspect names in case it is seen by someone involved in criminal activity, effectively tipping them off.

NO.55 Law enforcement (LE) suspects human trafficking to occur during a major sporting event LE officers asked several financial institutions (FIs) to monitor financial transactions occurring before, during, and after the event.
An investigator identified a pattern linked to a business. The business’ account received multiple even dollar deposits between midnight and 4:00 AM. They occurred each day for several days prior to the date of the sporting event. Also, large cash deposits, typically between 2,000 USD and 3,000 USD. made by a person to the business’ account occurred in many branches in the days after the sports event.
There was little information about the company. The company did not have any history of employee payroll expenses or paying taxes. Expenses from the business account included air travel and hotel expenses. Searches about the person making cash deposits showed little. An online social media platform webpage with the individual’s name showed ads for dates1′ and “companionship.” The Fl wants to create an automated alert for human trafficking money laundering after this investigation.
Which activity type should they target?

Payments made to multiple hotels in the same city

Multiple deposits between midnight and 4:00 AM

Deposits made within days of major sporting events

Payments made for virtual currency

NO.56 Which reputations risk consequence could a financial entity face for violating AML laws?

Loss of high-profile customers

Seizure of assets

Increased audit costs to monitor behavior

Monetary penalties

NO.57 A financial institution <FI> might use which option as intelligence to file a SAR/STR?

A customer makes several deposits in one month that appear to exceed their expected monthly income.

A customer receives a large, one-time wire from a law firm.

The Fl is unable to obtain evidence of required licensing or registration despite suspicion of money transmitting.

The Fl discovers a large number of securities transactions that appear to be related to day trading.

NO.58 The training department is conducting awareness training for unusual customer identification scenarios. Which two indicators should be included? (Select Two.)

The customer opens the account in the name of a family member who begins making large deposits.

The customer’s name and home address cannot be verified

The customer’s internet protocol address does not match the identifying information provided during online registration.

The customer requests payment of proceeds to an unrelated third party.

The customer frequently exchanges small bills for large bills.

NO.59 When crafting internal procedures on writing and submitting SARs/STRs, one should:

use internal keywords and standard industry terms to better provide context within which the suspicious activity was identified.

consider the guidelines issued by the national financial intelligence unit {FIU) and local regulator and incorporate any country-specific requirements.

include attachments with the SARs/STRs as all information needs to be at the disposal of the financial intelligence unit (FIU)

adhere to home junsdiction guidelines across the whole group when local requirements of the country of operation and home jurisdiction conflict.

NO.60 An EU bank account received 1.8 million EUR from a Swiss bank. The EU bank determines the originator was indicted by U.S. law enforcement, arrested in Switzerland, and extradited for alleged insider trading.
Which is the best reason the EU bank should file a SAR/STR?

The originator was indicted by U.S. law enforcement.

Insider trading is a predicate offense in the U.S. and Switzerland.

The events raise concerns that the payment represents proceeds from insider trading.

The Swiss bank filed a SAR/STR with the Money Laundering Reporting Office Switzerland.

NO.61 Potential indicators of money laundering associated with Trust and Company Service Providers include:
(Select Two.)

use of legal persons in jurisdictions with strict secrecy laws.

structuring cash deposits into third party accounts.

multi-jurisdictional wire transfers with no legal purpose.

generation of rental income to legitimize illicit funds.

frequent deposits to or withdrawals from bank accounts.

NO.62 Why is a more robust supervisory approach needed by regulators when overseeing small- and medium-sized money service businesses (MSBs) compared to larger MSBs for combatting terrorist financing (TF)?

Small- and medium-sized MSBs need to be targeted to ensure that competition in the industry remains constant and uniform.

Small- and medium-sized MSBs need to be robustly supervised so the regulator can maintain visibility in combatting TF.

Small- and medium-sized MSBs are more likely to falsify records to appear less risky in order to keep the banking relationship.

Small- and medium-sized MSBs are more at risk of allowing transactions linked to TF due to the lack of skilled compliance resources.