ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Sample Questions:

1. A law firm is involved in setting up complex offshore corporate structures for a client with minimal documentation of the source of funds. The firm does not question the client's transactions or report any suspicious activity. What is the primary money laundering risk associated with this behavior by the law firm?

A) The law firm is avoiding fees by minimizing documentation for clients in high-risk jurisdictions
B) The law firm is engaging in aggressive tax planning to help the client avoid legal taxes
C) The law firm is acting as a gatekeeper, facilitating the movement and concealment of illicit funds through complex corporate structures
D) The law firm is providing routine legal services that include creating complex legal structures, and no further scrutiny is required

2. The Money Laundering Reporting Officer (MLRO) of a life insurance company is reviewing the product risk assessment methodology. Which of the following attributes of life insurance products would be attributed a higher risk rating? (Select Three.)

A) Products that allow for a cash surrender value
B) Products that allow the option to change the nominated beneficiary after the commencement of the policy
C) Products with international health insurance coverage
D) Annuity products with a deferred income stream
E) Products that restrict the transfer of funds from one policy to another

3. A financial institution is exploring automation to assist investigators in reviewing flagged transactions. Currently, investigators spend a significant amount of time gathering data from multiple sources. Which of the following automation features would be most effective in improving investigator efficiency?

A) Pre-populated templates for SAR filing
B) AI-powered dashboards summarizing flagged transactions
C) Integration of open-source tools to gather real-time intelligence
D) Automated case prioritization based on risk scoring

4. Which of the following is a red flag indicating potential money laundering or terrorism financing through dealers of precious metals or high-value items?

A) A customer specifically requests to purchase a Kimberly Process-certified cut diamond
B) A customer wants to purchase gold bars with a combination of cash and cryptocurrency
C) A customer wants a hand-written receipt for a cash purchase of a high-end, limited-edition luxury watch
D) A customer pays an antique dealer with a credit card for a high-value antique item

5. Which of the following corporate structures present a higher money laundering risk because of reduced transparency? (Select Three.)

A) A limited liability company incorporated in a foreign jurisdiction
B) A company with bearer shares incorporated in a tax haven jurisdiction
C) A private investment company incorporated in a tax haven jurisdiction with strict secrecy laws
D) A company with nominee shareholders and directors in a local jurisdiction
E) A private company that has no activity in a tax haven jurisdiction

Solutions: