ACAMS CAMS Dumps Questions Answers

When assessing the risk rating of customers, financial institutions should consider various factors that may indicate the potential for money laundering, terrorist financing, or other illicit activities. According to the ACAMS Study Guide for the CAMS Certification Examination1, some of the key risk factors are:

Customer risk: This refers to the characteristics of the customer that may affect their risk profile, such as their identity, occupation, source of funds, business activities, reputation, and political exposure. For example, customers who are politically exposed persons (PEPs), cash-intensive businesses, non-resident customers, or customers with complex ownership structures may pose a higher risk of money laundering or terrorist financing.

Geographic risk: This refers to the location of the customer, their business, or their transactions, and the level of risk associated with that location. For example, customers who are based in, operate in, or transact with jurisdictions that have weak anti-money laundering (AML) regulations, high levels of corruption, or are subject to sanctions or embargoes may pose a higher risk of money laundering or terrorist financing.

Product risk: This refers to the type of products or services that the customer uses or offers, and the level of risk associated with those products or services. For example, customers who use or offer products or services that are anonymous, complex, or facilitate cross-border transactions may pose a higher risk of money laundering or terrorist financing.

Other risk factors that may be considered include transaction risk, delivery channel risk, and industry risk2. However, these are not among the options given in the question.

Thetimely filing of SARs is legally mandated, and financial institutions mustfollow jurisdiction-specific reporting deadlines.

Option A (Correct):Regulatory requirements dictate SAR filing deadlines(e.g., in the U.S., SARs must be filed within30 calendar daysof detecting suspicious activity).

Option B (Incorrect):30 days is the U.S. standard, but different jurisdictions may havedifferent SAR deadlines(e.g.,EU AMLD mandates prompt reporting).

Option C (Incorrect):Complexity-based reporting delaysare not permitted if theyexceed regulatory timelines.

Option D (Incorrect):Relying solely on professional judgmentrather than regulatory rules can lead tonon-compliance.

SAR Filing Deadlines in Different Jurisdictions:

Jurisdiction

SAR Filing Deadline

United States (FinCEN)

30 calendar days(60 days if no suspect is identified)

United Kingdom (FCA/NCA)

As soon as practicable

European Union (6AMLD)

"Promptly" (no fixed number of days)

Australia (AUSTRAC)

3 business daysfor terrorism financing,14 business daysfor other cases

Why Timely SAR Filing Matters:

Delays in reporting can result in regulatory penalties.

Early SAR filing enables FIUs to take swift action against financial crime.

Non-compliance can lead to fines, criminal charges, and reputational damage.

Terrorist financing (TF) differs from traditional money laundering, as funds can originate fromlegitimate sources(e.g., donations, charities) and often involvelow-value transactions.

Option A (Correct):Non-profits with no online presencecan beshell organizations used to finance terrorism.

Option C (Correct):Small-dollar payments to high-risk jurisdictions(e.g., FATF-listed countries)may indicate terrorist funding activity.

Why Other Options Are Incorrect:

Option B (Incorrect):Crowdfunding payments with transparency and project detailsare generallylow-risk.

Option D (Incorrect):Charities helping refugeesmay behigh-risk but not automatically suspicious.

Option E (Incorrect):Structuring below reporting thresholds is more indicative of money laundering than terrorist financing.

Red Flags for Terrorist Financing:

Frequent low-value transactions to conflict zones.

Use of charities and non-profits as fronts for terror groups.

Funds moving through unregulated crowdfunding platforms.

Best Practices for Detecting Terrorist Financing:

Identify transactions involving known terrorist financing typologies.

Enhance monitoring of non-profit organizations operating in high-risk regions.

Use negative news screening to detect links to sanctioned entities.