Acams Exam CAMS Topic 2 Question 91 Discussion

Actual exam question for Acams's CAMS exam

Question #: 91
Topic #: 2

[All CAMS Questions]

Which is the most severe consequence for a financial institution if the regulator finds it is in breach of AML regulatory obligations?

ALoss of license

BCivil sanctions

CMonetary fines

DNegative reputation

Show Suggested Answer

Suggested Answer: A

Non-compliance with AML regulatory obligations can have severe consequences for financial institutions. Among these, the most severe consequence is the loss of license. When a financial institution fails to meet AML requirements, regulators may revoke its license to operate. Losing the license effectively shuts down the institution's ability to conduct business, impacting its existence and operations significantly12.

1. Unit21 AML: 8 AML Penalties, Fines, and Sanctions + Examples You Should Avoid

2. Financial Crime Academy: Ensuring Compliance: The Power Of AML Regulatory Reporting

by Amie at Dec 09, 2024, 08:41 AM

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Dalene

2 months ago

Option A all the way. Losing your license is like getting kicked out of the financial institution club. Talk about a career-ending move!

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Berry

16 hours ago

Definitely the most severe consequence.

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Lorean

2 days ago

A) Loss of license

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Patti

3 days ago

True, it would be hard to recover from that kind of hit.

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Lynda

4 days ago

D) Negative reputation

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Willard

6 days ago

Yeah, but losing the license is the worst outcome.

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Hermila

9 days ago

C) Monetary fines

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Maia

13 days ago

Oh no, that would be devastating for the institution.

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Eladia

19 days ago

A) Loss of license

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Jolanda

2 months ago

Hmm, I think D. Negative reputation is the most severe consequence. No amount of money can fix a tarnished brand in the eyes of the public.

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Bernadine

2 months ago

I'm going with B. Civil sanctions can be just as bad, if not worse, than fines. The legal ramifications could cripple a bank.

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Bernardo

19 days ago

C) Monetary fines

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Viki

20 days ago

B) Civil sanctions

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Lashandra

23 days ago

A) Loss of license

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Darci

2 months ago

I would say C. Monetary fines are typically the most severe punishment from regulators. They can really hurt a company's bottom line.

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Noemi

1 months ago

C) Monetary fines

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Alesia

1 months ago

B) Civil sanctions

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Anna

2 months ago

A) Loss of license

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Kayleigh

2 months ago

Yes, that's true. Monetary fines can also have a big impact on a financial institution's operations.

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Hana

2 months ago

But don't you think monetary fines could also be a significant consequence?

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Colette

2 months ago

I agree with Kayleigh, losing the license would be devastating for a financial institution.

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Ora

3 months ago

Definitely option A. Losing your license is the ultimate consequence for any financial institution. I can't imagine how devastating that would be.

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Avery

2 months ago

Monetary fines can also be quite damaging, but losing the license is definitely the worst outcome.

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Katina

2 months ago

C) Monetary fines

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Craig

2 months ago

I agree, losing the license would be catastrophic for any financial institution.

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Blythe

2 months ago

A) Loss of license

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Kayleigh

3 months ago

I think the most severe consequence is loss of license.

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