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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

Which technologies are commonly used to help financial institutions (FIs) navigate privacy and data protection regulations while securely sharing client information with private third-party entities? (Choose two.)

A.

Blockchain to ensure traceability and security in shared data transactions

B.

Data encryption to protect sensitive information from unauthorized access

C.

Privacy-enhancing technologies (PETs) to enable secure and privacy-compliant data sharing

D.

Artificial intelligence (AI) to automating compliance processes like data anonymization and secure sharing

E.

Cloud storage solutions for efficient data handling and management

A bank has been fined for failing to take reasonable care to establish and maintain effective systems and controls for high-risk customers, including politically exposed persons (PEPs).

Which typical financial crime risks should the bank have addressed? (Choose three.)

A.

Gathering sufficient information to establish the source of funds and source of wealth

B.

Assessing the level of money laundering risk posed by prospective and existing high-risk customers

C.

Assessing and reviewing the minutes of the relevant committee responsible for onboarding customers

D.

Ensuring an employee is responsible for liaison with the authorities on matters related to countering the finance of terrorism

E.

Ensuring that resources in its compliance and AML areas kept pace with the bank's growth

A law enforcement action alleged that on several trading days over the course of two months, defendants engaged in a series of copper gold, crude oil. and natural gas futures transactions on an electronic trading platform One defendant repeatedly bought future contracts at low prices from the other, and then immediately sold them back at higher prices. As a result, one defendant effectively pocketed the same amount as the other lost even though there were no changes in the open positions held by either defendant.

What is a name for this typology?

A.

Short position

B.

Reverse flip

C.

Bid-ask spread

D.

Wash trading

What are the roles of a government Financial Intelligence Unit (FIU)? (Select Three.)

A.

Disseminate analysis of suspicious transaction and suspicious activity reports to foreign judicial systems to enhance their anti-money laundering and terrorist financing investigations and prosecutions

B.

Receive reports of suspicious transactions and suspicious activities from reporting institutions or obliged institutions

C.

Disseminate the analysis of suspicious transaction and suspicious activity reports to local law enforcement agencies and foreign FIUs to combat money laundering

D.

Investigate and where appropriate prosecute all suspicious transaction and suspicious activity reports received from reporting institutions or obliged institutions

E.

Analyze all suspicious transaction and suspicious activity reports received from reporting institutions or obliged institutions

Which of the following are considered best practices regarding senior management involvement in a financial crime compliance program? (Choose two.)

A.

Setting tone from the top

B.

Mandatory participation in all regulatory inspections

C.

Mandatory attendance and review of all financial crime trainings

D.

Setting clear criteria for escalations to senior management

Which non-governmental bodies typically issue information and guidance related to AML/CFT issues? (Choose two.)

A.

Wolfsberg Group

B.

Transparency International

C.

Financial Action Task Force (FATF)

D.

Tax Justice Network

A bank is preparing for a regulatory exam after a previous regulatory exam identified weaknesses in the bank's AML program. Since the last exam, the bank has improved the written AML program, hired an experienced AML compliance officer, and has taken actions to demonstrate a strong culture of compliance. The bank is now focused on getting through their transaction monitoring case backlog and completing enhancements to its sanctions screening program.

Which of the following are correct? (Select Two.)

A.

The bank is likely to face secondary sanctions from global financial institutions despite addressing many of the previous concerns.

B.

The bank may face civil or criminal penalties if it is unable to demonstrate sustained improvement in addressing the previous concerns.

C.

The bank may face the risk of regulatory orders to remediate its AML program despite addressing many of the previous concerns.

D.

The bank is protected from reputational risk arising from any regulatory action because regulatory orders must remain confidential.

E.

The regulatory agency may require the bank's board of directors to publicly share the actions taken to address the previous concerns in order to limit its reputational risk.

A compliance analyst has recently investigated an account where money was deposited in amounts below the reporting limit and almost entirely withdrawn in a foreign country.

Which type of money laundering is the compliance analyst potentially identifying?

A.

Trade-based

B.

Check Kiting

C.

Microstructuring

D.

Structuring

An international bank is investigating a payment requested by one of its correspondent relationships that generated an alert in the automated transaction monitoring system. The payment originated from a corporation located in Hong Kong and the final beneficiary is an individual located in New York.

Which steps should the bank take first to address the alert? (Select Three.)

A.

Send a 314(b) request to the corporation's bank in Hong Kong

B.

Call the receiving individual to review identity verification documents

C.

Confirm that neither the beneficiary nor the originator are sanctioned parties

D.

Request supporting documents, including invoices and contracts to confirm the purpose of the payment

E.

Check for negative news in public sources on the sender and receiver

The first line of defense is responsible for:

A.

collecting complete customer information.

B.

ongoing screening of customers.

C.

suspicious activity and sanctions reporting.

D.

evaluating the effectiveness of compliance controls.

Which of the below statements are supported by the Financial Action Task Force (FATF) 40 Recommendations adopted in 2012? (Select Two.)

A.

Customer privacy regulations should guide the development of due diligence and other money laundering and terrorist financing preventive measures.

B.

Nations should work towards implementing targeted financial sanctions in alignment with the UN Security Council.

C.

Nations should take measures to ensure there is transparency to the beneficial ownership of legal persons.

D.

Nations should establish frameworks that take a risk-based approach to prevent and mitigate money laundering and terrorist financing.

E.

Governments must work toward developing identical administrative and operational frameworks for investigating and prosecuting crime.

F.

Regulators should direct Financial Institutions to establish appropriate frameworks to avoid banking higher risk customers.

The Wolfsberg Group's 2012 "Principles (or Private Banking" established that.

A.

private banks agree that transparency of client beneficial ownership Is necessary and appropriate.

B.

due diligence requirements tor private banking customers are necessary to prevent predicate offenses.

C.

risk based approaches are insufficient to address the heightened risk presented through private banking

D.

private banks need to better coordinate and align their global AML control environment strategies.

Common risks and red flags associated with trade finance clients may include: (Choose four.)

A.

account activity that is not consistent with the purpose of the account

B.

bills of lading matching the description of goods, quantities, and values with transshipment details justified

C.

transaction structures that appear unnecessarily complex

D.

trade documents, such as invoices and letters of credit, that are not clearly worded or are in foreign languages

E.

invoices with prices that are much higher than market price

F.

fluctuations in the pricing of standard goods and services

Which of the following is a key consideration for a global organization when managing AFC and sanctions compliance across multiple jurisdictions?

A.

Ensuring sanctions compliance by relying solely on international bodies like the UN because there is no requirement to adhere to local laws

B.

Ensuring group policies and procedures prioritize adherence to US regulations because they are the most influential worldwide

C.

Applying global AFC and sanctions policies to ensure consistency without the need to adapt to local regulations

D.

Ensuring group policies cater to compliance with each country's specific AML and sanctions regulations

Which red flags could indicate increased terror financing and money laundering risks related to cultural objects? (Select Three.)

A.

Engagement of third-party art advisors as representatives at art auctions

B.

High-quality single pieces of significant value sold on social media platforms

C.

Use of art and antiquity experts to verify an item's authenticity

D.

Paying fair market value or premium prices for valuable art, gems, or precious metals at auction

E.

Use of art storage facilities located in tax-free zones

Which should be provided to the board of directors or designated specialized committee when preparing suspicious activity reports (SARs)?

A.

Statistical data regarding SARs filed during the reported period

B.

All possible details of SARs filed during the reported period

C.

Copies of all SARs filed during the reported period

D.

Names of all customers subject to SARs filed during the reported period

Which of the following scenarios warrants enhanced due diligence (EDD)? (Select Three.)

A.

An existing local league footballer trying to open a bank account with a bank in their local jurisdiction

B.

The current prime minister of a country trying to open a bank account in another country

C.

The former personal secretary to the minister of transport in a low-risk country 25 years ago opening a bank account at a bank in a neighboring low-risk country

D.

A bank located in a higher risk country trying to establish a correspondent-respondent banking relationship with a bank in a lower-risk country

E.

An individual with a current bank account who resides in one country becoming the ambassador of another country

A large financial institution (FI) is considering expanding business to an area of the world with weak AML laws. The risk-based assessment indicates that the location will increase the FI's risk appetite beyond the stated acceptable amount.

Which risk factors should be used to identify the priority of the FI?

A.

Cash-intensive businesses risks

B.

Unknown third-party risks

C.

Geographic risks

D.

Anonymous transactions risks

Which services provided by an accounting firm could be considered as higher risk from a financial crime perspective? (Choose three.)

A.

Forming a trust on behalf of a customer with a complex setup and acting as a nominee director

B.

Auditing a firm that provides payroll software to large corporate customers

C.

Preparing financial statements for a listed or a privately owned firm

D.

Providing tax advice to an international customer hoping to move their assets out of their home country

E.

Assisting an offshore corporation from a jurisdiction with no available beneficial owner information to buy property in the UK

A wealthy individual is using a complex corporate structure to facilitate illegal logging and then illegal mining of the resulting resources from that land.

Which category of predicate crime is taking place?

A.

Trade-based money laundering

B.

Corruption

C.

Illicit resource trade

D.

Environmental crime

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Total 313 questions
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