CAMS Exam Info and Free Practice Test All-in-One Exam Guide Dec-2025 [Q494-Q512]

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CAMS Exam Info and Free Practice Test All-in-One Exam Guide Dec-2025

Pass ACAMS CAMS Actual Free Exam Q&As Updated Dump Dec 28, 2025

The CAMS certification program covers a broad range of topics related to AML, including regulations, risk assessment, customer due diligence, transaction monitoring, and investigations. The program is designed to provide professionals with a comprehensive understanding of the AML landscape and the tools and techniques used to prevent financial crimes. Certified Anti-Money Laundering Specialists (the 6th edition) certification program is available to individuals working in a variety of roles within the financial industry, including compliance officers, risk management professionals, law enforcement officials, and regulatory officials.

NEW QUESTION 494
What describes the Black Market Peso Exchange money laundering method?

The best known money laundering method used by known terrorists

An undercover technique to identify politically exposed persons who may assist money launderers

A method primarily used by narcotics traffickers to transfer value back to the source country

A method used to smuggle dollars or pesos across that border from the U.S. to Mexico, and vice versa

NEW QUESTION 495
Which aspect of the USA PATRIOT Act impacts foreign financial institutions?

Requiring enhanced due diligence for foreign shell banks

Expanding sanctions requirements to a U.S. financial institution’s foreign branches

Expanding the anti-money laundering program requirements to all foreign financial institutions

Providing authority to impose special measures on institutions that are of primary money-laundering concern

NEW QUESTION 496
Why is the Mutual Legal Assistance Treaty (MLAT) a gateway for international cooperation?

They provide a legal basis for transmitting evidence that can be used for prosecution and judicial proceedings

They receive reports of suspicious transactions from financial institutions to disseminate to local Law enforcement and foreign FIUs

They obtain intelligence that might lead to evidence

They issue the Prmc4es of Information Exchange Between Financial intelligence Units (FIUs)

A Mutual Legal Assistance Treaty (MLAT) is an agreement between two or more countries for the purpose of gathering andexchanging information in an effort to enforce public or criminal laws1. MLATs provide a legal basis for transmitting evidence that can be used for prosecution and judicial proceedings, such as witness statements, bank records, search and seizure orders, and asset forfeiture2. MLATs also facilitate the cooperation and coordination between law enforcement authorities of different jurisdictions in investigating and prosecuting transnational crimes, such as money laundering, terrorist financing, corruption, and cybercrime3. The other options are incorrect because:
* B. MLATs do not receive reports of suspicious transactions from financial institutions, but rather request specific information or evidence from foreign authorities. Financial institutions report suspicious transactions to their domestic Financial Intelligence Units (FIUs), which may then share the information with foreign FIUs through other mechanisms, such as the Egmont Group or bilateral agreements4.
* C. MLATs do not obtain intelligence that might lead to evidence, but rather request evidence that is already available or can be obtained by foreign authorities. Intelligence is a broader term that refers to any information that is relevant to the security or interests of a country, and may not be admissible as evidence in a court of law5. Intelligence may be obtained through other means, such as covert operations, surveillance, or informants6.
* D. MLATs do not issue the Principles of Information Exchange Between Financial Intelligence Units (FIUs), but rather follow them. The Principles of Information Exchange are a set of guidelines that were adopted by the Egmont Group of FIUs in 2001, and aim to enhance the cooperation and communication among FIUs in exchanging financial information and intelligence7. The Principles of Information Exchange are not legally binding, but rather reflect the best practices and standards of the FIU community.
1: Mutual legal assistance treaty – Wikipedia
2: FREQUENTLY ASKED QUESTIONS REGARDING LEGAL ASSISTANCE IN CRIMINAL
MATTERS, page 1
3: The Mutual Legal Assistance Problem explained | wilmap
4: ACAMS, CAMS Certification Package – 6th Edition, Chapter 4, page 125
5: Intelligence – Wikipedia
6: Intelligence cycle – Wikipedia
7: Egmont Group of Financial Intelligence Units – Wikipedia
Principles for Information Exchange Between Financial Intelligence Units for Money Laundering and Terrorism Financing Cases

NEW QUESTION 497
A compliance officer at a small community bank has been asked to review existing customer onboarding policies and procedures to ensure they adequately address anti-money laundering risks.
How should customer due diligence be implemented?

With an annual compliance review and approval of customers

With a one-time event conducted at initial customer onboarding

As an ongoing activity that may vary commensurate with the risk profile of the customer

As applicable to customers that pose higher money laundering or terrorist financing risk

NEW QUESTION 498
In which three situations is correspondent banking most vulnerable to money laundering? Choose 3 answers

When allowing foreign banks to use the correspondent account to conduct large financialtransactions on behalf of their customers

When allowing the correspondent bank account to be used as a payable through account (PTA)

When allowing the correspondent bank account to be used by other banks

When allowing financial institutions, without proper due diligence, to access correspondentnetwork for routing their financial transactions

NEW QUESTION 499
What are three factors a financial institution should examine with regard to a new customer who is opening up a new account? Choose 3 answers

The country or location where the customer is from or does business

The type and size of the business the customer runs

The legal structure of the customer’s business

The previous financial institutions where the customer has banked

NEW QUESTION 500
A high-profile, successful entrepreneur has been a client of a Swiss private bank for more than a decade.
Recently, the entrepreneur launched a political career, with rather extremist political views. On which grounds can the bank terminate the client’s bank relationship? (Select Two.)

The client is not able (or willing) to provide documentary evidence of tax compliance.

The client’s account has an increase in unusual and significant monthly inflows.

A business partner of the account holder requests an asset freeze, stating a business dispute and disagreement over the quality of goods and services sold to the partner.

The client has made his/her fortune in the mining and excavation industry, which the bank has deemed as a high-risk industry.

Continuing the client relationship poses an increasing reputational risk, which could negatively affect the bank’s future business.

NEW QUESTION 501
A financial institution is reorganizing and the anti-money laundering officer is now required to report to the Sales Director. Which of the following statements about this situation is most correct?

The reorganization will ensure communication of anti-money laundering issues to the board.

The reorganization will enhance the compliance framework.

The anti-money laundering officer should be elevated to a position on the Board.

The anti-money laundering officer should be independent of business functions.

NEW QUESTION 502
What does the Financial Action Task Force (FATF) urge its members and all other jurisdictions to do when a jurisdiction is identified as having lax anti-money laundering / counter financing of terrorism controls?

Apply counter-measures to that jurisdiction

Consider customers from that jurisdiction as high risk

Cease doing business with that jurisdiction immediately

Apply economic sanctions until otherwise notified by FATF

NEW QUESTION 503
In performing a risk analysis, which factor(s) should a financial institution review?

The level of its gross revenue

Recent regulatory actions against financial institutions of comparable size

Its customer base, location, products and services

The adequacy and completeness of its STR filings

NEW QUESTION 504
A suspicious transaction report filed on a car dealer structuring deposits initiates a criminal investigation. The dealer changes branches and begins placing transactions with a frontline employee to whom the dealer has given numerous gifts.
This employee handles all of the dealer’s structured deposits and does not report the suspicious activity internally.
The competent authority has advised the anti-money laundering specialist to avoid tipping off the employee until the investigation is finalized.
What action should the specialist take next?

Recommend the immediate termination of the employee.

Advise that the dealer’s accounts should be closed.

Consult with senior management and the legal advisor.

Inform the institution’s regulatory agency of the situation.

NEW QUESTION 505
Which action by a prospective customer during the account opening process requires further investigation?

Providing a driver’s license

Questioning reporting requirements

Listing a long-distance phone number

Expressing knowledge of the financial industry

NEW QUESTION 506
Which method is indicative of potential money laundering and terrorist financing activity?

Client converts 500 Euro in mixed denomination notes to small denomination U.S. bills in a single transaction

A commercial client in the export business regularly receives wire transfers from high risk countries

An unknown client purchases multiple monetary instruments for one person during the course of one day

An unknown client pays $1,000 in cash for an urgent transfer to a high risk country

NEW QUESTION 507
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?

Commodities traders

Money services businesses

Hawala operators

Real estate agents

NEW QUESTION 508
What should an employee do after witnessing suspicious activity from a coworker?

Request that the coworker provide justification for their actions.

Escalate to the company’s conflict line or compliance department.

Request help from colleagues in determining that the best course of action.

Discuss the suspicious activity with your supervisor.

NEW QUESTION 509
Which method to launder money through deposit-taking institutions is closely associated with international trade?

Forming a shell company

Using Black Market Peso Exchange

Structuring cash deposits withdrawals

Investing in legitimate business with illicit funds

NEW QUESTION 510
Financial Action Task Force (FATF)-style regional bodies are created and obliged to understand the inherent money laundering and terrorist financing risks in the region of the world they serve.
What is one of the methods they use to understand these risks?

They require member countries to develop statistical metrics over money laundering and terrorist financing crimes

They require participating financial institutions of their members to file suspicious transaction reports to the regional body

They conduct global research on money laundering and terrorist financing trends and report their findings in their own typologies report

They conduct regional-level research and analysis of the money laundering and terrorist financing methods and trends using standards and templates used for FATF typologies reports

NEW QUESTION 511
What core objective does the Egmont Group suggest would lead to an effective national Financial Intelligence Unit (FIU)?

The FIU must operate from physically separated premises from other law enforcement agencies and government offices.

The FIU meets the Egmont Group assessment criteria.

The FIU must have absolute trust amongst national and international stakeholders before sensitive information will be exchanged with confidence.

The FIU must be able to promote the value of the government’s commitment to embed a corruption free society within the country.

NEW QUESTION 512
Which statements regarding the USA PATRIOT ACT best describe key aspects that have extraterritorial reach? (Choose three.)

It allows for the US Attorney General to subpoena records from a foreign bank with US correspondent accounts, including those that are located outside the US.

It allows foreign banks to voluntarily designate a registered agent in the US to accept service of subpoenas.

It allows the Secretary of the Treasury to order a US financial institution (FI) to close a correspondent account when a subpoena has not been responded by a foreign bank in a timely manner.

It obliges the government to trace the origin of the funds when a seizure of assets occurs in a correspondent account that has been opened and maintained for a foreign bank in the US.

It excludes as foreign FIs businesses that would be considered broker-dealers, money transmitters, and currency exchangers.

It allows federal banking supervisors to require records of the identity of the owners of a foreign bank from a Fl operating in the US.

The USA PATRIOT Act is a comprehensive legislation that was enacted in response to the terrorist attacks of September 11, 2001, and aimed to strengthen the US government’s ability to prevent, detect, and prosecute money laundering and terrorist financing. Among its many provisions, the USA PATRIOT Act contains several sections that have extraterritorial reach, meaning that they apply to foreign entities or activities that have a nexus with the US. Three of these sections are:
* Section 319(b), which allows for the US Attorney General or the Secretary of the Treasury to issue a subpoena or other legal order to any foreign bank that maintains a correspondent account in the US, requiring the production of records relating to such account or any account at the foreign bank, including records maintained outside the US12. This section also allows foreign banks to voluntarily designate a registered agent in the US to accept service of such subpoenas or orders12.
* Section 313, which prohibits US financial institutions from establishing, maintaining, administering, or managing correspondent accounts for foreign shell banks, which are banks that have no physical
* presence in any country and are not affiliated with a regulated financial group34. This section also requires US financial institutions to take reasonable steps to ensure that their correspondent accounts with foreign banks are not being used to provide banking services indirectly to foreign shell banks34.
* Section 311, which authorizes the Secretary of the Treasury to designate foreign jurisdictions, financial institutions, classes of transactions, or types of accounts as being of “primary money laundering concern” and to impose special measures to address such concerns . These special measures may include requiring US financial institutions to obtain and retain information on the beneficial owners of foreign accounts, prohibiting or imposing conditions on the opening or maintaining of correspondent or payable-through accounts for foreign financial institutions, or requiring US financial institutions to identify the customers of their foreign correspondent account holders . The Secretary of the Treasury may also order a US financial institution to terminate a correspondent account within 10 days if the foreign bank fails to comply with a subpoena or other request for information under Section 319(b) .
References:
* 1: USA PATRIOT Act, Section 319(b)
* 2: ACAMS, CAMS Certification Package – 6th Edition, Chapter 4, page 121
* 3: USA PATRIOT Act, Section 313
* 4: ACAMS, CAMS Certification Package – 6th Edition, Chapter 4, page 120
* : USA PATRIOT Act, Section 311
* : ACAMS, CAMS Certification Package – 6th Edition, Chapter 4, page 119 Reference:
https://www.jonesday.com/-/media/files/publications/2007/10/extraterritorial-application-of-the-usa-patriot-ac/fi
https://www.lawfareblog.com/long-arm-us-law-patriot-act-anti-money-laundering-act-2020-and-foreign-banks

Online Questions – Valid Practice CAMS Exam Dumps Test Questions: https://www.prepawaytest.com/ACAMS/CAMS-practice-exam-dumps.html

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