Preparation Material with Free Demos and Updates [2026]
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ACAMS Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Sample Questions (Q212-Q217):
NEW QUESTION # 212
Which principle about safeguarding privacy and data should an auditor adhere to when performing an AML investigation?
- A. During evidence gathering, privacy laws are less important than local AML laws.
- B. Terrorist financing is more relevant in the context of data protection and supersedes laws.
- C. Countries should clarify where AML and Data Protection Privacy laws are not balanced.
- D. AML and Data Protection Privacy laws should not be mutually exclusive.
Answer: D
NEW QUESTION # 213
What is the first step in designing an effective controls framework using a risk-based approach?
- A. Establishing risk controls
- B. Conducting a risk assessment
- C. Assessing risk controls
- D. Ongoing risk monitoring
Answer: B
Explanation:
The first step in designing an effective controls framework using a risk-based approach is conducting a risk assessment. This identifies and evaluates inherent risks, providing the basis for determining which controls are necessary and how they should be prioritized.
NEW QUESTION # 214
A financial institution is conducting an enterprise-wide risk assessment (EWRA) and has identified a high inherent risk of money laundering associated with its private banking division due to the clientele's high net worth and complex financial structures. However, the institution has implemented robust customer due diligence (CDD) and enhanced due diligence (EDD) procedures, along with sophisticated transaction monitoring systems.
How would these controls impact the assessment of residual risk?
- A. The residual risk would be eliminated entirely because the controls are sufficient to mitigate all potential risks
- B. The residual risk would be moderately reduced, but further controls may be necessary to achieve an acceptable level
- C. The residual risk would be significantly reduced due to the effectiveness of the controls in place
- D. The residual risk would remain high due to the inherent nature of the private banking business
Answer: C
Explanation:
Strong CDD, EDD, and advanced transaction monitoring can significantly reduce residual risk in high-risk areas like private banking. While no control fully eliminates risk, effective implementation and ongoing oversight can bring the residual risk down to an acceptable level from its initially high inherent risk.
NEW QUESTION # 215
Money laundering has social and economic impacts, especially within developing countries. A high volume of money laundering in a country may: (Select Two.)
- A. Lower the employment rate.
- B. Reduce volatility in exchange and interest rates.
- C. Dissuade foreign investment.
- D. Dissuade government tax incentive programs
- E. Reduce confidence in the country's financial sector.
Answer: E
NEW QUESTION # 216
How do national risk assessments (NRAs) and sectoral risk assessments influence a financial institution' s (FI's) internal AML/CFT risk assessment?
- A. An FI must strictly adopt the exact risk factors, weightings, and methodologies from the NRA and sectoral risk assessment without adjustment
- B. An FI's AML/CFT risk assessment must be written and approved by the board of directors exactly as specified in the NRA and sectoral risk assessment
- C. If a sectoral risk assessment is published, the FI must implement it directly across all subsidiaries and branches without modification
- D. An FI must demonstrate that the risks identified in its AML/CFT risk assessment are aligned with the NRA and sectoral risk assessments and that these risks are managed effectively
Answer: D
Explanation:
FATF standards require financial institutions to adopt a risk-based approach (RBA) that is informed by national and sectoral risk assessments. These assessments identify key threats, vulnerabilities, and typologies within a jurisdiction or industry and provide essential context for institutional risk management.
Financial institutions must reference and align their internal AML/CFT risk assessments with the findings of NRAs and sectoral assessments. This means demonstrating awareness of identified risks and showing how these risks are mitigated through policies, controls, and procedures.
However, institutions are not required to copy or mechanically apply the exact methodologies, weightings, or conclusions of these assessments. Each institution must tailor its risk assessment to its own business model, customer base, products, services, and geographic exposure.
Board oversight is required, but NRAs do not dictate how internal assessments must be written or approved.
The key regulatory expectation is alignment, awareness, and effective risk management-not rigid adoption.
NEW QUESTION # 217
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