New 2026 Realistic CAMS7 Dumps Test Engine Exam Questions in here [Q194-Q217]

NEW QUESTION 194
What areas of laws and regulations have the greatest impact on AML/CFT applications? (Choose three.)

Information security, data privacy, and cybersecurity

Foreign exchange control, and precious gemstone and metal dealing

Ombudsman and anti-competition authority

Electronic contract and biological signature acceptance

Consumer protection, financial inclusion, and environmental, social and governance

NEW QUESTION 195
Which techniques would be most efficient for a complex investigation of unusual patterns of activity involving multiple businesses, triggered by an automated monitoring system alert? (Select Two.)

Perform a control and ownership assessment of the businesses involved, using the information available in the client files

Contact local law enforcement and request that they assist in the analysis and investigation

Review the information presented in the automated monitoring system’s alert description and decline any future transactions

Contact the account manager and ask for the reasons behind the patterns of activity highlighted in the AML alerts

Use social media platforms to connect with the businesses and request details about the account activity

NEW QUESTION 196
Which of the following serves as an example of a successful public-private partnership (PPP)?

The Financial Action Task Force (FATF)

The AUSTRAC Fintel Alliance

The Egmont Group

The Wolfsberg Group

NEW QUESTION 197
Which red flag is MOST associated with mule account activity?

Stable salary deposits over several years

Frequent incoming transfers immediately withdrawn or forwarded

Long-term mortgage repayment history

Small recurring grocery purchases

NEW QUESTION 198
What are the main benefits of implementing explainable artificial intelligence (AI) or machine learning (ML) technologies to improve operational effectiveness within AML/CFT compliance?
(Select Two.)

Identifies AML/CFT risks without the need for human involvement

Reduces the need for human resources

Processes and analyzes large data sets more quickly and accurately

Increases auditability, accountability, and overall good governance

NEW QUESTION 199
According to the Egmont Group, which benefits do public-private partnerships (PPPs) provide to Financial Intelligence Units (FIUs)? (Select Three.)

Helping overcome data protection and information sharing limitations

Enhancing the quality of reporting and additional informational input

Helping to alleviate the financial cost burden on law enforcement

Helping to design common approaches and identify desired deliverables

Offering flexibility, agility, and opportunities to adjust to the ML/TF threat environment

NEW QUESTION 200
Which types of external data sources are expected to be used for screening customers as part of customer due diligence (CDD)? (Select Three.)

Customer feedback and online review platforms

Social media profiles to assess lifestyle and spending habits

Sanctions lists, including those issued by the Office of Foreign Assets Control (OFAC)

Registers of stolen or forged documents (where available)

Beneficial ownership registers and adverse media sources

NEW QUESTION 201
An employee in a corporation’s finance department hears news of an internal investigation into potential fraud within the company, quits her job, and disappears.
If they had been observed before her resignation, which characteristics of the employee would have been considered red flags? (Select Two.)

The employee was originally from a high-risk jurisdiction

The employee had friends in high-risk industries

The employee had a lavish lifestyle for her income

The employee was constantly evasive about the reasons for leaving her previous corporate finance job

NEW QUESTION 202
Artificial intelligence (AI) and machine learning (ML) procedures help in applying a risk-based approach in AML compliance through: (Select Three.)

Automatically generating Suspicious Activity Reports (SARs) without the need for human review

Advanced customer risk assessments that synthesize client background information with additional data

Identification of links among apparently unrelated clients who have established complex networks for money laundering

Automatically adapting risk thresholds for customers without any human intervention

Detection of complex money laundering patterns in transactions

NEW QUESTION 203
Which of the following are potential financial crime-related red flags when obtaining client data? (Choose three.)

A client frequently submits financial statements much earlier than required appearing overly eager

A client insists on using a personal bank account for business transactions despite being advised otherwise

A new client shows a preference for minimal direct interaction and relies primarily on indirect communication methods, citing convenience or time constraints

The client is a publicly listed company but very diversified

The ultimate beneficial ownership is unclear

NEW QUESTION 204
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?

Ongoing monitoring

Risk assessment

Policies and procedures

Suspicious activity reporting

Customer due diligence

NEW QUESTION 205
Which of the following entities could potentially pose a higher money laundering risk and require additional review prior to onboarding? (Select Two.)

A large multinational corporation with extensive, documented wire transfer activity

A local convenience store that replenishes the onsite automated teller machine (ATM) with cash from its till

A local used car sale lot that allows individuals to pay their monthly bill in cash

A virtual asset service provider (VASP), facilitating peer-to-peer cryptocurrency transactions

NEW QUESTION 206
Which risks inherent to real estate sector carry the highest AML/CFT risk? (Select Two.)

Use of cash to purchase property

Unlicensed real estate agents acting as front companies

Use of a registered trust for the purchase of property

Use of a company for the purchase of property

Manipulation of the value of a property

NEW QUESTION 207
Challenges in the implementation of new technologies for AML/CFT include: (Select Four.)

data privacy.

enhanced due diligence (EDD) policies.

the Travel Rule.

data quality.

complexity.

regulatory.

NEW QUESTION 208
Which ML/TF risks are associated with cryptoassets? (Select Three.)

Devaluation

Smart contract vulnerabilities

Potential for anonymity

Global reach

High transaction fees

Use to layer illicit funds

NEW QUESTION 209
A customer regularly sends small international wires to multiple unrelated beneficiaries in conflict regions. Which risk is MOST concerning?

Tax optimization

Terrorist financing

Consumer lending abuse

Insider trading

NEW QUESTION 210
A multinational corporation is considering expanding into a new market with a history of political instability and corruption. Which strategy would be most effective in mitigating reputational risk from a financial crime perspective associated with such an expansion?

Ensure the jurisdiction risks and other relevant factors have been taken into consideration in the EWRA and the residual risks are within the corporation’s risk appetite

Partnering with established local businesses to leverage their knowledge and connections while sharing risks

Ensuring the company has strong ties with local government officials to influence policy and avoid negative scrutiny

Committing to open communication, ethical practices, and community engagement to build trust with stakeholders

Minimizing the company’s direct presence in the country to reduce exposure to potential risks

NEW QUESTION 211
Which document BEST helps identify the true beneficial owner of a legal entity customer?

Utility bill

Certificate of incorporation alone

Beneficial ownership declaration

ATM transaction history

NEW QUESTION 212
The chief compliance officer (CCO) at a bank approved offering trade finance services to a company which is established within a country with a weak democratic system routinely reviews news on upcoming targeted economic sanction regulations in the EU, a major import partner for the country’s production of crude oil. Which of the following pieces of news would be of greatest concern?

The European Commission and the High Representative issue a joint proposal for an import ban on refined oil products.

The European Commission and the High Representative issue a joint proposal for an import ban on oil extraction equipment

The Council of the European Union adopts a new export control regime for electronic equipment

The Council of the European Union adopts a new import restriction regime for goods coming from countries that do not respect human rights

NEW QUESTION 213
The compliance officer at an EU bank is investigating one of the customer accounts maintained with the bank for the last two years. According to bank records, the company’s primary economic activity is import and export of petrochemical products Over a period of one year, the account transactions have exceeded US$500 million with various high-value inward wire transfers received from suppliers in Yemen followed by outward wire transfers to counterparties in Azerbaijan. Which factor should give the compliance officer the greatest concern If observed in the investigation?

Media searches reveal a report that the customer was accused of misconduct three years ago.

The EU bank considers the origin and destination countries Involved in the transactions to be high-risk.

The customer’s activity includes multiple cross-border transactions involving various counterparties.

The EU bank received no originator or beneficiary information for the wire transfers.

The customer specializes in the import and export of petrochemical products.

NEW QUESTION 214
A financial institution’s US Branch receives a subpoena from law enforcement requesting detailed records of a customer’s account activity. The customer is part of an ongoing investigation into a money laundering operation. At the same time, the institution has received a FinCEN 314(b) information-sharing request from another bank seeking details on transactions linked to the same customer. The compliance team is tasked with responding to both the subpoena and the FinCEN 314(b) request.
What should the compliance officer prioritize in responding to these requests while ensuring that all legal and regulatory obligations are met?

Notify the customer of the information-sharing request from the other financial institution and seek their consent before responding

Consult the institution’s legal counsel to validate the subpoena, then respond directly to law enforcement while ensuring all documentation is properly recorded

Respond to the FinCEN 314(b) request first, as it allows for voluntary information sharing with partner organizations

Provide the requested records to both law enforcement and the other financial institution immediately to ensure full cooperation and transparency

NEW QUESTION 215
Which line of defense would be tasked with interpreting new AML regulations and revising training for client- facing relationship managers?

The first line

The second line

Senior management

The third line

NEW QUESTION 216
Financial institutions (FIs) must use a risk-based approach in customer due diligence (CDD) measures for legal entity clients by:

Understanding and obtaining information about the competition the business relationship could face

Identifying a customer’s identity using data and information from the internet and social media

Taking reasonable measures to verify the identity of the beneficial owner

Conducting ongoing analysis of the business relationship’s profitability

NEW QUESTION 217
A prospective client walks into an accounting firm wanting to incorporate a company. The accountant feels uncomfortable after the meeting. Which two of the accountant’s observations warrant escalation to the compliance officer? (Select Two.)

The principal activities of the proposed company are importing and exporting new furniture

The prospective client presents confusing details about the proposed business and has very little knowledge about the proposed business activity

The prospective client is unable to provide information about the beneficial owners

The prospective client exhibits confidence when speaking to the accountant when providing personal details

The prospective client is able to provide source of funds and source of wealth documents