CAMS · Question #34
CAMS Question #34: Real Exam Question with Answer & Explanation
The correct answer is C. Initiate an investigation into the activity. According to the ACAMS CAMS Certification Study Guide (6th edition), the bank should file a SAR if it knows, suspects, or has reason to suspect that a transaction involves funds derived from illegal activity, or is intended or conducted to hide or disguise funds or assets derived
Question
Options
- ABlock any further activity
- BFile a suspicious transaction report
- CInitiate an investigation into the activity
- DContact the customer if the transaction activity continues
Explanation
According to the ACAMS CAMS Certification Study Guide (6th edition), the bank should file a SAR if it knows, suspects, or has reason to suspect that a transaction involves funds derived from illegal activity, or is intended or conducted to hide or disguise funds or assets derived from illegal activity, or to evade any BSA regulation or federal law, or has no business or apparent lawful purpose, or is not the sort in which the customer would normally be expected to engage. The scenario described in the question meets these criteria, as the small deposits and withdrawals from a high-risk country could indicate money laundering, terrorist financing, or other illicit activities. The bank should also document its decision to file or not file a SAR, and retain the supporting documentation for five years.
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