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CAMS ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Free Practice Exam Questions (2025 Updated)

Prepare effectively for your ACAMS CAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 313 questions

While gaming platforms are typically used for recreational purposes, they can potentially be used for terrorist financing through games in which players can:

A.

buy in-game items with virtual in-game currencies.

B.

exchange in-game items with other players.

C.

trade in-game items with other players that can be exchanged for fiat currency

D.

obtain in-game materials by performing in-game activities.

Which of the following best describes the use of fuzzy logic in customer screening systems?

A.

It produces outputs that include a range of intermediate possibilities between "Yes" and "No"

B.

It is an advanced analytics tool widely used to implement AFC controls

C.

It allows for a greater number of exact matches, reducing the need for manual review

D.

It is a new technique for enhancing the quality of alerts for review

Which techniques are most commonly used in a rules-based approach to transaction monitoring for detecting suspicious activities? (Choose two.)

A.

Using predefined rules to flag specific transaction patterns

B.

Randomly flagging transactions for further investigation

C.

Statistical tuning of monitoring scenarios to improve accuracy

D.

Using advanced machine learning models to detect outliers

E.

Setting transaction thresholds for automated alerts

According to the Financial Action Task Force (FATF) Recommendation 22. when involved in customer transactions that include the buying and selling of real estate, real estate professionals are required to apply which customer due diligence (CDD) measures? (Select Two.)

A.

Obtaining prior senior manager approval for all related transactions

B.

Understanding the purpose of the business relationship

C.

Performing adverse media searches on the customer

D.

Identifying and verifying the customer's identity

Which activities would be considered money laundering red flags when reviewing the business operations of a money services business (MSB)? (Select Two.)

A.

A customer being hesitant to provide beneficiary name or address information when sending international wire transfers

B.

Cash-intensive businesses, such as convenience stores or restaurants, making large cash deposits

C.

A customer exchanging foreign currency from a higher-risk jurisdiction for domestic currency under the reporting threshold

D.

A customer using multiple accounts under different names to conduct transactions

E.

A customer completing frequent small-dollar international money transfers to their native country

What are the primary sources of reference besides AML laws and regulations when developing and maintaining the AML policies, standards, and procedures of a bank? (Choose three.)

A.

National Risk Assessment

B.

Regulatory guidance or publications

C.

Government or state-run newspapers

D.

Guidance issued by international bodies

E.

Policies and procedures developed by other banks

As emphasized in the Basel Committee guidance for "Sound management of risks related to money laundering and financing of terrorism", the third line of defense, or audit function, should:

A.

Conduct AML audits no less often than every 12 months for consistency in annual reporting.

B.

Remain independent from expressing opinions on the sufficiency of remediation or action plans to address findings and recommendations.

C.

Be involved in the day-to-day operations of the AML program to immediately prevent control failures.

D.

Report to the audit committee of the board of directors to maintain independence.

According to the Financial Action Task Force (FATF). potential risk indicators related to money laundering proceeds from environmental crimes include. (Select Two.)

A.

waste management sector companies based in high-risk jurisdictions with payments or trade invoices tor types of waste aligned with those they are authorized to process.

B.

frequent payments from companies in the logging. milling, or waste trade sectors to individuals or beneficiaries unrelated to the legal parson activity or business.

C.

unexplained wealth and cash transfers involving senior officials or politically exposed persons for their family members) with a position of responsibility related to the management or preservation of natural resources.

D.

small cash transfers from cash-Intensive businesses to beneficiaries in areas known as a source of gold mining, illegal logging, and Illegal land clearing.

A sound AML compliance program requires a comprehensive governance framework that addresses key elements to ensure the integrity of the financial system.

Which element forms the starting point of an effective AML compliance program?

A.

Ongoing monitoring

B.

Risk assessment

C.

Policies and procedures

D.

Suspicious activity reporting

E.

Customer due diligence

When a government imposes economic sanctions on a target the purpose is to:

A.

protect the rights of the citizens of the state target against their own government and improve financial stability in the region.

B.

indicate that the use of military force is likely unless the state or non-state target complies with the government's

C.

interests encourage non-governmental organizations to increase the provision of humanitarian and charitable aid to the target

D.

alter the behavior of the state or non-state target that threatens the interests of that government or violates international norms

Which of the following businesses require enhanced or additional scenarios for identifying anomalous transactions? (Select Two.)

A.

Companies operating in cash intense businesses not subject to licensing requirement

B.

Companies operating hospitals and health-care services

C.

Companies operating in cash intense businesses subject to licensing requirement

D.

Companies producing pharmaceutical products and medical devices, companies active in the mining industry

E.

Companies operating retail shops countrywide

A national risk assessment (NRA) can impact the risk-based approach (RBA) within an organization's anti-financial crime (AFC) compliance program by: (Choose two.)

A.

helping to identify high-risk sectors that require enhanced due diligence (EDO),

B.

eliminating the need for sectoral risk assessments within the organization

C.

guiding the allocation of resources for mitigating financial crime risks

D.

requiring all organizations to apply standardized measures

E.

automatically reducing the organization's responsibility for conducting its own risk assessment

A compliance officer at a large bank has been tasked with investigating a series of unusual transactions involving a long-time customer. The customer has made several large cash deposits into multiple accounts within a short period, raising red flags. After gathering and analyzing transaction data, reviewing customer records, and cross-referencing external sources, the compliance officer determines that there is a reasonable suspicion of money laundering. As part of documenting this investigation, the compliance officer must decide how and when to escalate the matter internally and whether to file a suspicious activity report (SAR).

What is the next critical step in this process?

A.

Document the customer's transaction history and keep the investigation confidential until further suspicious activity is detected.

B.

Immediately escalate the case to senior management, recommending the closure of the customer's accounts due to potential reputational risk.

C.

Report the investigation to external auditors and await further guidance before taking any action.

D.

Draft a SAR that includes a detailed chronology of the transactions, customer background and the rationale for suspicion, and submit it to the relevant financial intelligence unit (FIU) within the regulatory timelines.

Cryptocurrency-related technologies that can be exploited by money launderers include: (Select Two.)

A.

generative copilots.

B.

small language models.

C.

privacy coins.

D.

crypto-mixers.

When selecting an anti-financial crime (AFC) tool for an organization, the most important factor to consider is whether the tool:

A.

integrates seamlessly with existing systems and processes.

B.

meets budget and cost requirements.

C.

automates all regulatory reporting requirements.

D.

replaces manual compliance training for employees.

A bank is completing a periodic KYC profile review for a customer that is a small digital marketing company based in New York City.

Which of the following would be a red flag?

A.

The account activity includes deposit activity into both savings and checking accounts

B.

The account activity includes incoming funds transfers at irregular intervals from small businesses located in New York

C.

The account activity includes deposits made in multiple branches around New York City into the same account.

D.

The account activity includes frequent purchases of tickets to industry conferences and other events.

Having a risk-based approach is central to a financial institution understanding the money laundering and terrorist financing risk to which they are exposed. The development of a money laundering and terrorist financing risk assessment is a key starting point.

Commonly used risk factors include. (Select Three.)

A.

product risk.

B.

credit risk.

C.

geographic risk.

D.

customer risk.

E.

liquidity risk.

Which risks are specifically associated with the misuse of gaming accounts in financial crime? (Choose three.)

A.

Using gaming accounts to transfer illicit funds between players undetected

B.

Structuring transactions to avoid reporting thresholds by keeping them under certain limits

C.

Providing false personal information to evade regulatory oversight

D.

Ensuring identity verification is completed prior to the onboarding of new customers

E.

Investing all gaming winnings into high-risk stocks to conceal funds

An AML analyst at a bank is investigating cases triggered by transaction monitoring alerts.

Which circumstances might cause the analyst to suspect a case involves terrorist financing? (Select Two.)

A.

Transactions involving non-profit organizations with no internet presence

B.

Small dollar payments sent to crowdfunding initiatives with detailed descriptions of the project being financed

C.

Transactions involving structured currency deposits below the reporting threshold to avoid paying taxes

D.

Small dollar payments sent to higher-risk jurisdictions with no prior history

E.

Transactions involving domestic non-profit organizations providing charitable aid to refugees from higher-risk countries

Which operational situation might indicate that money laundering is occurring at or through a deposit-taking financial institution?

A.

The institution has observed an increase in customer demand for large-denomination banknotes.

B.

The institution maintains a sequentially numbered log of the monetary instruments it sells.

C.

The institution has observed a reduced settlement time in the transaction services that support the rapid movement or remittance of funds.

D.

The institution has observed an increase in the adoption of its digital products and services.

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