CAMS Question #284: Real Exam Question with Answer & Explanation

Question

Options

• AEstablish a consistent regulatory environment across the EU to prevent money laundering
• BAddress control of payments in EU countries to reduce money laundering
• CAllow member states to discuss the draft legislation with the cooperation of the EU Financial
• DBuild a network of financial institutions (FIs) that work together to prevent money laundering

Explanation

The key goal of EU Directives on money laundering is to establish a consistent regulatory environment across the EU to prevent money laundering and terrorist financing, and to align EU policy with international standards and best practices. EU Directives are legal acts that set out the objectives and principles that member states must achieve, but leave the choice of methods and measures to the national authorities. EU Directives on money laundering aim to harmonize the rules and obligations for FIs and other obliged entities in the areas of customer due diligence, record- keeping, reporting, supervision, and sanctions. They also aim to address the emerging threats and vulnerabilities of the financial system, such as the use of virtual assets, prepaid cards, high-risk third countries, and beneficial ownership. By creating a consistent regulatory environment across the EU, the Directives seek to enhance the effectiveness and cooperation of the AML/CFT regime, and to protect the integrity and stability of the internal market and the financial system.

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