Session 5 CAMS

Which of the following is a core element of an AML/CFT program?

• Product marketing strategies

• Culture of compliance

• Stock market analysis

• Revenue generation focus

What is the primary goal of Customer Due Diligence (CDD)?

• To increase profits

• To verify customer identity and assess risk

• To avoid regulatory inspections

• To develop marketing plans

What is the purpose of a risk-based approach in AML/CFT programs?

• To apply controls equally to all risks

• To allocate resources proportionally to identified risks

• To minimize documentation requirements

• To avoid regulatory audits

Which customer is considered high-risk for money laundering?

• A domestic retail customer

• A politically exposed person (PEP)

• A student opening a savings account

• A retired individual receiving pensions

Which risk factor is not typically assessed in an AML/CFT compliance program?

• Geographical risks

• Product risks

• Astrological sign of the customer

• Customer risks

Policies and procedures in an AML/CFT program must:

• Be verbal and flexible

• Be written and endorsed by management

• Exclude management involvement

• Avoid specifying suspicious activity guidelines

Which is a requirement for reporting suspicious transactions?

• Filing a Suspicious Transaction Report (STR)

• Tipping off the customer involved

• Ignoring small amounts below the reporting threshold

• Reporting all transactions, regardless of suspicion

What is the purpose of segregation of duties in AML/CFT programs?

• To avoid dual controls

• To ensure accountability and reduce risks

• To eliminate employee involvement

• To centralize decision-making

A strong culture of compliance is set by:

• Employee training

• Tone at the top from leadership

• Reducing compliance spending

• Delegating compliance to junior staff

What does the 'tone at the top' refer to in compliance culture?

• Employee decisions on AML matters

• Leadership actively supporting compliance initiatives

• Customer involvement in risk assessment

• Outsourcing compliance functions