Acams CAMS-FCI Exam Questions

Questions for the CAMS-FCI were updated on : Dec 01 ,2025

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Question 1

Which test should be included in a bank's Office of Foreign Assets Control sanctions screening audit
program?

  • A. Reviewing wire transfer screening processes to ensure that potential name hits are investigated promptly
  • B. Looking at copies of suspicious activity reports filed with regulators to ensure completeness
  • C. Ensuring that all clients with foreign identification are subject to enhanced due diligence
  • D. Examining Human Resources processes for conducting criminal background checks on executives
Answer:

C

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Explanation:
The OFAC sanctions screening audit program should include the requirement that all clients with
foreign identification are subject to enhanced due diligence, as this provides an extra layer of
protection against potential violations of OFAC sanctions.
Reference: CAMS VI manual, page 132, section 7.2.2.1.1 - "Testing for OFAC Sanctions Screening
Audit." This section specifically states that the OFAC sanctions screening audit program should
include ensuring that all clients with foreign identification are subject to enhanced due diligence.

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Question 2

Which is a key characteristic of the Financial Action Task Force (FATF) Regional Style Bodies for
combatting money laundering/terrorist financing?

  • A. Instructing each member country to place FATF recommendations into law
  • B. Implementing regional mutual evaluation procedures
  • C. Emphasizing regional co-operation between member countries
  • D. Enabling FATF standards to be specific to each region
Answer:

B

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Explanation:
According to the CAMS study guide, the Financial Action Task Force (FATF) Regional Style Bodies are
organizations created by the FATF to promote the implementation of anti-money laundering and
countering the financing of terrorism (AML/CFT) measures in specific regions. One of the key
characteristics of these bodies is the implementation of regional mutual evaluation procedures.
Regional mutual evaluations involve member countries evaluating each other's AML/CFT regimes to
identify strengths and weaknesses and to develop best practices for improvement. This process
allows for greater cooperation between countries and can help to identify and address regional
AML/CFT risks more effectively. It also promotes consistency in AML/CFT standards and practices
within the region.

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Question 3

The training department is conducting awareness training for unusual customer identification
scenarios. Which two indicators should be included? (Select Two.)

  • A. The customer opens the account in the name of a family member who begins making large deposits.
  • B. The customer's name and home address cannot be verified
  • C. The customer's internet protocol address does not match the identifying information provided during online registration.
  • D. The customer requests payment of proceeds to an unrelated third party.
  • E. The customer frequently exchanges small bills for large bills.
Answer:

AB

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Explanation:
This information can be found in the Certified Anti-Money Laundering Specialist (CAMS) study guide,
6th edition, under the section on Unusual Customer Identification Scenarios. The guide explains that
two indicators that should be included in awareness training for unusual customer identification
scenarios are:
A . The customer opens the account in the name of a family member who begins making large
deposits.
This is an indicator of potential structuring, where a customer may be attempting to avoid triggering
reporting thresholds by depositing funds in smaller amounts over time. It is important for staff to be
aware of this scenario and to monitor accounts for potential suspicious activity.
B . The customer's name and home address cannot be verified.
This is an indicator of potential identity theft or other fraudulent activity. If a customer's identifying
information cannot be verified, it is important for staff to conduct additional due diligence to ensure
that the customer is legitimate and that the account is not being used for illicit purposes.

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Question 4

A compliance analyst is reviewing the account activity of a customer that they suspect may be
indicative of money laundering activity. Which is difficult to determine solely from the customer's
account activity and KYC file?

  • A. If the activity is materially different from related businesses
  • B. If the account has multiple transfers to the same, related businesses
  • C. If there is negative media associated with counterparties
  • D. If the account is mostly dormant or has little activity
Answer:

C

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Explanation:
According to the Certified Anti-Money Laundering Specialist (CAMS) study guide, 6th edition, page
105, the correct answer is C. It can be difficult to determine if there is negative media associated
with counterparties solely from the customer's account activity and KYC file.
The study guide explains that negative media can include news articles, government sanctions lists,
and other sources of public information that may indicate that a counterparty is involved in illicit
activities. However, this information may not be readily available in a customer's account activity or
KYC file, and may require additional research or investigation.

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Question 5

How does the Financial Action Task Force (FATF) measure the effectiveness of a country's efforts to
combat money laundering and terrorist financing?

  • A. Mutual evaluation
  • B. FATF Evaluation Committee
  • C. Basel Committee
  • D. Series of internal audits followed by reporting to FATF
Answer:

A

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Explanation:
"The FATF measures the effectiveness of a country's efforts to combat money laundering and
terrorist financing through a mutual evaluation process. During a mutual evaluation, the FATF
assesses a country's legal and institutional framework, its implementation of measures to combat
money laundering and terrorist financing, and the effectiveness of its efforts. The FATF then issues a
report with recommendations for improvement" [CAMS Study Guide 6th edition, page 15-16].

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Question 6

According to the Financial Action Task Force, as part of their risk assessment, which are important
data and information that a Trust and Company Service Provider must understand when establishing
and administering a trust? (Select Two.)

  • A. The responsibility and authority in the structure
  • B. The management structure of the trust
  • C. The source of funds in the structure
  • D. The general purpose behind the structure
  • E. The general nature of business of the trust
Answer:

AD

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Explanation:
Here is the exact information from the Financial Action Task Force (FATF) Guidance for a Risk-Based
Approach for Trust and Company Service Providers:
"Understanding the management and ownership structure of a trust is crucial in assessing the ML/TF
risk it poses. This includes the identity of all settlors, trustees and beneficiaries, and their respective
roles and responsibilities, as well as the nature and purpose of the trust."
"TCSPs should obtain and maintain up-to-date information on the purpose and intended nature of
the business relationship, the source of funds and wealth, and where relevant, the source of funds or
wealth of the settlor and beneficiaries."
Based on this information, the correct answers are A and D. Trust and Company Service Providers
must understand the responsibility and authority in the structure, as well as the general purpose
behind the structure in order to assess the overall risk of the trust and ensure that any transactions
with the trust are legitimate.

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Question 7

Which payment method for purchasing luxury items is a red flag for potential money laundering?

  • A. Personal loan
  • B. Cash
  • C. Wire transfer
  • D. Credit card
Answer:

B

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Explanation:
According to the Financial Action Task Force (FATF), the use of large amounts of cash is a common
method for money launderers to move illicit funds [1]. Purchasing luxury items with cash can
indicate an attempt to convert illegal funds into tangible assets that can be easily resold or moved
across borders. As a result, businesses that deal with luxury items are required to implement
enhanced due diligence measures, including monitoring transactions involving large amounts of cash
[1].
Reference: [1] Financial Action Task Force. (2013). Money Laundering & Terrorist Financing Through
the Real Estate Sector.
https://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-real-
estate.pdf

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Question 8

The law enforcement agency (LEA) of a foreign jurisdiction contacts a financial institution (Fl)
regarding one of the Fl's clients. The LEA advises that the client is currently wanted for prosecution as
a result of a series of human trafficking charges. What should the Fl do? (Select Two.)

  • A. Review the client's activity, determine if suspicious activity exists, and report accordingly.
  • B. Advise the LEA that the government needs to be contacted for extradition.
  • C. Comply immediately with the foreign jurisdiction and turn over all client information.
  • D. Inform local LEA and regulator of the request for awareness.
  • E. Close the clients accounts immediately to avoid any undue risk.
Answer:

AD

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Explanation:
According to the Certified Anti-Money Laundering Specialist (the 6th edition), the financial institution
(Fl) should take the following actions:
A . Review the client's activity, determine if suspicious activity exists, and report accordingly. The Fl
should assess the risk of the situation and determine if there is any suspicious activity that needs to
be reported to the appropriate authorities. This would involve conducting a review of the client's
account activity and transactions to determine if there are any indicators of money laundering or
terrorist financing.
D . Inform local LEA and regulator of the request for awareness. The Fl should inform the local law
enforcement agency and regulator of the request from the foreign jurisdiction to raise awareness of
the situation and determine if any further actions need to be taken.

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Question 9

What action does the USA PATRIOT Act allow the US government to take regarding financial
institutions (FIs) that are based outside of the US?

  • A. Sanction a country when an individual Fl does not comply with US law.
  • B. Subpoena documents from FIs that have no presence in the US.
  • C. Revoke the banking licenses of non-US FIs in countries outside the US.
  • D. Allow all US regulators to place a non-US Fl on the Specially Designated Nationals and Blocked Persons List.
Answer:

B

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Explanation:
According to the CAMS manual 6th edition, the USA PATRIOT Act allows the US government to
subpoena documents from foreign financial institutions (FIs) that have no presence in the US (option
B). The manual states that "The USA PATRIOT Act provides US law enforcement agencies with the
power to subpoena documents from foreign banks that maintain correspondent accounts with US
banks or have no presence in the United States" (p. 77).

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Question 10

A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most
relevant?

  • A. The provision of remote check deposit services
  • B. The provision of cash services
  • C. The provision of payable through accounts
  • D. The provision of brokerage services
Answer:

B

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Explanation:
Retail banks typically have a high inherent risk of money laundering due to their provision of cash
services. This is because cash is a preferred medium of exchange for criminals and terrorists, and
retail banks provide a convenient way for them to move large sums of money without detection.
Retail banks are also vulnerable to money laundering through the use of false identities and other
deceptive practices. (CAMS Manual, 6th Edition, Page 8).

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Question 11

A new customer has just been onboarded in a securities firm. After a few weeks, there are unusual
trading patterns that are being flagged. Which pattern is most concerning to the compliance officer?

  • A. The customer engages in large trading in securities that are liquid or highly priced from the trading account.
  • B. The customer's repeated trading in securities that are low priced and low volume counters.
  • C. The customer receives many incoming wire transfers from related parties to the trading account.
  • D. The customer accumulates securities of a low volume counter in small increments on a weekly basis.
Answer:

D

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Explanation:
The most concerning trading pattern for a compliance officer when a new customer has been
onboarded in a securities firm is the customer accumulating securities of a low volume counter in
small increments on a weekly basis. This type of behavior could indicate that the customer is
attempting to obscure their identity or the true purpose of their trading activity, which can be
indicative of money laundering or other suspicious activity. (CAMS Manual, 6th Edition, Page 170).

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Question 12

How does the Asian/Pacific Financial Action Task Force <FATF>-Style Regional Body help its members
implement recommendations from the FATF? (Select Two.)

  • A. Promotes laws that allow judicial challenges to seizure orders by an administrative body
  • B. Endorses regulations that define money laundering based on the model laws issued by the respective member states
  • C. Facilitates the adoption and implementation of internationally accepted AMI measures by member jurisdictions
  • D. Encourages cooperative AML efforts in the region
  • E. Requires members to maintain lists of regional money laundering and terrorists financing issues relevant to their region
Answer:

CD

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Explanation:
The Asian/Pacific Financial Action Task Force-Style Regional Body (APG) helps its members
implement recommendations from the FATF by facilitating the adoption and implementation of
internationally accepted AML measures by member jurisdictions (CAMS Manual, 6th Edition, Page
22). The APG also encourages cooperative AML efforts in the region, which can include information-
sharing and mutual evaluations to assess member compliance with FATF recommendations (CAMS
Manual, 6th Edition, Page 25). Therefore, options C and D are the correct answers.

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Question 13

Which is the first valid step in the Mutual Legal Assistance Treaties international cooperation
process?

  • A. The investigator may remove the evidence collected without asking permission to do so.
  • B. The central authority of the requesting country sends a letter of request to the central authority of the other country.
  • C. An investigator from the requesting country visits the country where the information is sought and takes statements from the identified witnesses or suspects.
  • D. The central authority that receives the request sends it to a local judicial officer to find out if the information is available.
Answer:

B

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Explanation:
The first valid step in the Mutual Legal Assistance Treaty (MLAT) international cooperation process is
for the central authority of the requesting country to send a letter of request to the central authority
of the other country. The letter of request should provide a summary of the facts and information
required, the reasons for the request, and any specific legal or procedural requirements that need to
be met. (CAMS Manual, 6th Edition, Page 233).

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Question 14

Which are primary purposes of Financial Action Task Force {FATF)-Style Regional Bodies? (Select
Two.)

  • A. Acting as a prudential regulatory body for financial institutions
  • B. Providing due diligence for foreign correspondent banks
  • C. Providing expertise and input in FATF policy-making
  • D. Imposing special measures for non-cooperative jurisdictions
  • E. Promoting effective implementation of FATF recommendations
Answer:

CE

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Explanation:
The primary purposes of Financial Action Task Force (FATF)-Style Regional Bodies are to promote
effective implementation of FATF recommendations and to provide expertise and input in FATF
policy-making. (CAMS Manual, 6th Edition, Page 180)

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Question 15

Which reputations risk consequence could a financial entity face for violating AML laws?

  • A. Loss of high-profile customers
  • B. Seizure of assets
  • C. Increased audit costs to monitor behavior
  • D. Monetary penalties
Answer:

D

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Explanation:
According to the Certified Anti-Money Laundering Specialist (CAMS) Manual
[1]
, 6th edition, financial
entities that violate Anti-Money Laundering (AML) laws can face several reputational risks such as
loss of high-profile customers, seizure of assets, increased audit costs to monitor behavior, and
monetary penalties. For example, the US Treasury's Financial Crimes Enforcement Network (FinCEN)
imposes civil money penalties on "persons who willfully violate, attempt to violate, conspire to
violate, or cause any violation of any provision of the Bank Secrecy Act or its implementing
regulations." (CAMS Manual, 6th edition, page 26).

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