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CAMS · Question #504

CAMS Question #504: Real Exam Question with Answer & Explanation

The correct answer is C. The threat of US sanctions against foreign individuals and entities continues to exist despite the. The threat of US sanctions against foreign individuals and entities continues to exist despite the absence of a US nexus. This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 591, which states: "It is important to note that the threat

Question

A compliance officer of a financial institution is reviewing a payment for sanctions compliance between two parties in Europe and Asia. The payment is in Euros and involves the provision of services to a company located in a jurisdiction subject to Office of Foreign Assets Control secondary sanctions. Which factor is most important in determining the compliance officer's response?

Options

  • AAsset freezes only prohibit US companies from engaging in certain activities with counterparts
  • BA one-off commercial transaction conducted between parties in Europe and Asia is not subject to
  • CThe threat of US sanctions against foreign individuals and entities continues to exist despite the
  • DSecondary sanctions only target specific sectors of the economy such as the banking and finance

Explanation

The threat of US sanctions against foreign individuals and entities continues to exist despite the absence of a US nexus. This is stated in the Certified Anti-Money Laundering Specialist (the 6th edition) manual on page 591, which states: "It is important to note that the threat of US sanctions against foreign individuals and entities continues to exist even when there is no direct US nexus (i.e., no US persons or assets involved)."

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