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ACAMS Certified Anti-Money Laundering Specialists (the 6th edition) Sample Questions (Q279-Q284):
NEW QUESTION # 279
In accordance with Financial Action Task Force (FATF) standards, when the minimum AML requirements of the host country where a financial institution (Fl) operates are less strict than those of the Fl's home country, the Fl:
- A. is required to ensure that their branches and majority-owned subsidiaries in host countries implement the requirements of the home country, to the extent that host country laws and regulations permit.
- B. is required to impose more strict requirements on host country branches, disregarding if host country laws and regulation permit such action.
- C. should close down its operations in the host countries where minimum AML requirements are less strict than those of the home country.
- D. should always apply additional measures on their branches and majority-owned subsidiaries in host countries to manage the money laundering and terrorist financing risk overseas.
Answer: A
Explanation:
In accordance with Financial Action Task Force (FATF) standards [1][2], when the minimum AML requirements of the host country where a financial institution (Fl) operates are less strict than those of the Fl's home country, the Fl is required to ensure that their branches and majority-owned subsidiaries in host countries implement the requirements of the home country, to the extent that host country laws and regulations permit. This means that the Fl should not impose more strict requirements on host country branches, disregarding if host country laws and regulation permit such action, and should not close down its operations in the host countries where minimum AML requirements are less strict than those of the home country. However, the Fl should always apply additional measures on their branches and majority-owned subsidiaries in host countries to manage the money laundering and terrorist financing risk overseas.
NEW QUESTION # 280
Which requirement is included in the Fourth European Union Directive on money laundering?
- A. It requires obliged entities to conduct enhanced due diligence on all prepaid card holders
- B. It requires member states to enact economic sanctions against countries that do not cooperate with Financial Action Task Force recommendations
- C. It requires member countries to maintain registries of the beneficial owners of legal entities
- D. It requires obliged entities to consider politically exposed persons as high risk for life
Answer: C
NEW QUESTION # 281
What are some useful tools or methods in conducting an internal AML investigation? Choose 3 answers
- A. Reviewing documents, particularly of relevant accounts
- B. Subpoenaing the owners of the relevant accounts
- C. Interviewing knowledgeable employees of the institution
- D. Exploring leads through internet searches
Answer: A,C,D
Explanation:
Explanation
NEW QUESTION # 282
The USA PATRIOT Act requires United States (U.S.) financial institutions to collect certain information from non-U.S. banks that hold a correspondent account.
Which two pieces of information must a non-U.S. bank provide to its U.S. correspondent to enable them to comply with this requirement? (Choose two.)
- A. The name and address of all beneficial owners who own 25% or more of the bank
- B. The name and address of a U.S. person who is authorized to receive service of legal process for the bank
- C. Prompt notice of any suspicious activity it detects on any customer who uses the correspondent account
- D. The name and address of all shell banks the bank maintains accounts for
Answer: B,D
Explanation:
According to Section 313 of the USA PATRIOT Act, U.S. financial institutions are prohibited from maintaining correspondent accounts for foreign shell banks, which are banksthat have no physical presence in any country and are not affiliated with a regulated financial group. Therefore, a non-U.S. bank must provide the name and address of all shell banks that it maintains accounts for, if any, to its U.S. correspondent. This is to ensure that the U.S. financial institution does not indirectly provide services to shell banks, which pose a high risk of money laundering and terrorist financing.
According to Section 319 (b) of the USA PATRIOT Act, U.S. financial institutions that provide a correspondent account to a foreign bank must maintain records of the owners of the foreign bank and the name and address of a U.S. person who is authorized to receive service of legal process for records regarding the correspondent account. This is to facilitate the access of U.S. law enforcement authorities to information related to the correspondent account in case of an investigation or a subpoena.
The other two options, B and C, are not required by the USA PATRIOT Act, although they may be part of the due diligence or enhanced due diligence procedures that U.S. financial institutions apply to their foreign correspondent accounts, as per Section 312 of the USA PATRIOT Act.
USA PATRIOT Act
FACT SHEET for Section 312 of the USA PATRIOT Act Final Regulation and Notice of Proposed Rulemaking US PATRIOT ACT CAMS Exam: USA PATRIOT Act Requirements for Opening a Correspondent Account Reference:https://www.sec.gov/about/offices/ocie/amlsourcetool.htm
NEW QUESTION # 283
Which of the following strategies is most effective for a global organization to manage risks related to anti-money laundering (AML) and sanctions compliance?
- A. Ensuring group policies cater to compliance with each country's specific AML and sanctions regulations.
- B. Ensuring sanctions compliance by relying solely on international bodies like the UN because there is no requirement to adhere to local laws.
- C. Applying global AFC and sanctions policies to ensure consistency without the need to adapt to local regulations.
- D. Ensuring group policies and procedures prioritize adherence to US regulations because they are the most influential worldwide.
Answer: A
Explanation:
A global organization must ensure its group policies accommodate compliance with each country's specific AML and sanctions regulations to effectively manage risks across multiple jurisdictions.
NEW QUESTION # 284
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