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ACAMS Exam Questions
- Topic 1: RISKS AND METHODS OF MONEY LAUNDERING AND TERRORISM FINANCING: This section focuses on identifying the various risks and methods associated with money laundering and terrorism financing. Candidates will need to recognize the risks to both individuals and institutions for violations of anti-money laundering (AML) laws.
- Topic 2: COMPLIANCE STANDARDS FOR ANTI-MONEY LAUNDERING (AML) AND COMBATING THE FINANCING OF TERRORISM (CFT): This section assesses understanding of the key compliance frameworks and principles related to AML and CFT.
- Topic 3: AML, CFT, AND SANCTIONS COMPLIANCE PROGRAMS: This section focuses on the design and implementation of effective AML, CFT, and sanctions compliance programs. Candidates must be able to recognize the essential elements of an institution-wide risk assessment.
- Topic 4: CONDUCTING AND SUPPORTING THE INVESTIGATION PROCESS: This section of the exam assesses the candidate's knowledge of investigative procedures and reporting requirements. Candidates must show they understand how to appropriately report high-profile suspicious activity reports (SARs) or suspicious transaction reports (STRs) to both internal management and external regulatory authorities.
Free Acams CAMS Exam Actual Questions
Note: Premium Questions for CAMS were last updated On Mar. 03, 2025 (see below)
How can awareness be raised within countries that do not have sanctions regulatory regimes? (Select Two.)
Many jurisdictions lack robust sanctions frameworks, requiring international cooperation and education to improve compliance.
Option B (Correct): Educational initiatives such as AML/sanctions training and workshops help raise awareness and build capacity.
Option D (Correct): Bilateral cooperation allows knowledge-sharing and technical assistance between regulatory authorities.
Why Other Options Are Incorrect:
Option A (Incorrect): Trade restrictions may pressure non-compliant nations, but they do not directly improve sanctions awareness.
Option C (Incorrect): Enforcing fines without prior education or assistance is ineffective and may create diplomatic tensions.
Best Practices for Sanctions Awareness & Compliance:
Develop international AML/sanctions training programs for emerging markets.
Encourage diplomatic engagement to strengthen legal frameworks.
Leverage FATF's Mutual Evaluation process to assess progress.
FATF Recommendation 6 (Sanctions & International Cooperation)
OFAC Guidance on Sanctions Compliance for Emerging Jurisdictions
Egmont Group Guidelines on Information Sharing & Capacity Building
What are the roles of a government Financial Intelligence Unit (FIU)? (Select Three.)
Financial Intelligence Units (FIUs) serve as national centers for collecting, analyzing, and disseminating AML/CFT information.
Option B (Correct): FIUs analyze SARs and STRs to detect money laundering and terrorist financing risks.
Option D (Correct): FIUs disseminate financial intelligence to local and international law enforcement agencies and other FIUs.
Option E (Correct): FIUs receive SARs/STRs from financial institutions, which form the basis for their analysis.
Why Other Options Are Incorrect:
Option A (Incorrect): FIUs do not prosecute cases; they refer findings to law enforcement agencies.
Option C (Incorrect): FIUs share intelligence, but prosecution is handled by judicial authorities, not FIUs.
Best Practices for FIUs:
Enhance data-sharing agreements with domestic and international agencies.
Use AI and analytics tools to detect suspicious financial patterns.
Ensure secure handling of sensitive AML/CFT data.
FATF Recommendation 29 (FIU Role & Responsibilities)
Egmont Group Guidelines on FIU Information Sharing
EU 6th AML Directive (6AMLD) on Financial Intelligence Functions
A financial institution (FI) is fined for failure to implement an effective AML program. Which consequences could the regulator impose on the bank's Chief AML Officer? (Select Three.)
Civil and Criminal Prosecution, Fines, and Imprisonment: The Chief AML Officer may face legal action, including both civil and criminal proceedings. This could result in fines and even imprisonment if found guilty of negligence or misconduct related to anti-money laundering compliance.
Ban from Employment: Regulators have the authority to ban individuals from working in the financial services industry if they are deemed unfit due to AML-related failures. Such a ban can significantly impact the individual's career prospects.
Recommend Termination of Employment: While the regulator cannot directly terminate employment, they can recommend that the financial institution (FI) take appropriate action, including termination, based on the Chief AML Officer's performance.
Anti-Money Laundering Specialist (the 6th edition) resources.
ACAMS AML Glossary (definitions of terms related to AML).1
ACAMS AML Foundations Certificate (overview of AML concepts and responsibilities).2
ComplyAdvantage: 6th Money Laundering Directive (6AMLD) (details on AML regulations and penalties).3
A customer's registered business activity is a domestic carpet cleaning company. Besides domestic receipts, there are incoming weekly transactions from an international reputable
auction house starting at 15,000 USD and averaging 30,000 USD. The matching cash outgoings amount to 90% of the incoming deposits to non-related individuals. Which is most
concerning for potential money laundering?
The customer's business activity as a domestic carpet cleaning company is not inherently suspicious, as it aligns with their registered business. However, the significant weekly transactions from an international reputable antique auction house raise red flags.
The sudden increase in the customer's initial international receipt from $15,000 USD to an average of $30,000 USD per transaction per week is also noteworthy. Such a substantial change warrants further scrutiny.
The fact that 90% of the incoming deposits are matched by cash outgoings to non-related individuals could indicate layering or structuring activities associated with money laundering.
Overall, the combination of large international transactions, increased receipts, and cash outflows to unrelated parties from an antique auction house is the most concerning aspect.
Anti-Money Laundering Specialist (the 6th edition) resources.
ACAMS AML Glossary (definitions of terms related to AML).1
ACAMS AML Foundations Certificate (overview of AML concepts and responsibilities).2
ComplyAdvantage: 6th Money Laundering Directive (6AMLD) (details on AML regulations and penalties).3
Which is the most severe consequence for a financial institution if the regulator finds it is in breach of AML regulatory obligations?
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
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