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ACAMS Association of Certified Anti Money Laundering Sample Questions (Q90-Q95):
NEW QUESTION # 90
A longstanding client asks to open two additional accounts, one for a trust and one for private equity investments.
The trust account will be funded with dividends stemming from the investments as well as a one-off transfer from one of the client's existing accounts. As a first step, a KYC analyst should properly document the:
- A. beneficiary/beneficiaries of the trust
- B. initial transfer from the client's existing account
- C. dividends from the private equity investments.
- D. transactions between the two new accounts.
Answer: A
Explanation:
When opening an account for a trust, the first step in KYC is to identify and document the trust's beneficiaries, along with other key parties such as the settlor and trustees, to establish transparency over the ultimate beneficial ownership.
NEW QUESTION # 91
What is the overall purpose of KYC?
- A. To manage the risk posed by Terrorist Financing
- B. To manage the risk posed by customers.
- C. To manage the risk posed by financial services industry.
- D. To manage the risk posed by Money Laundering.
Answer: B
NEW QUESTION # 92
A customer of a bank in the EU has been changing the business activities of their company every month since becoming a customer two years ago. The bank should:
- A. hold the older information for one year and then destroy any records in line with data privacy requirements.
- B. hold the information for a period of time, as specified by the policies of the bank, and in line with the EU AML Directives.
- C. keep records of the changing circumstances for as long as the customer holds an account with the bank.
- D. maintain only the current information, because data privacy regulations require old information be destroyed when updated.
Answer: B
Explanation:
Under EU AML Directives, banks must retain customer information and changes for the period specified in their internal policies, ensuring compliance with record-keeping requirements, while also adhering to applicable data privacy laws.
NEW QUESTION # 93
Are Immediate family members, relatives, and close associates of PEPS classified as PEPS?
- A. Yes.
- B. No.
- C. Perhaps.
Answer: C
NEW QUESTION # 94
What is the Third Line of Defense? (TLOD)
- A. The _______ line of defense is the compliance and internal control functions. That includes the chief money laundering reporting officer, or MLRO, in charge of managing and monitoring AML and CFT activities.
- B. The _______ line of defense is also known as the front line, these customer-facing employees are best-equipped to get the information you need for your customer due diligence. Can include Operations, risk, and control teams.
- C. The ________ line of defense is internal audit. They perform an independent review of the controls applied by the lines of defense.
Answer: C
NEW QUESTION # 95
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