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CAMS · Question #574

CAMS Question #574: Real Exam Question with Answer & Explanation

The correct answer is D. Travelers checks (cheques) were purchased for trips to a Non-Cooperative Countries and. The customer activity that should trigger a suspicious transaction report is purchasing travelers checks (cheques) for trips to a Non-Cooperative Countries and Territories (NCCTs). This could indicate an attempt to evade currency reporting requirements, avoid sanctions or embargo

Question

A customer runs an export business for agricultural products. There has been steady growth over the years from sales to the Caribbean region. A sudden increase is noted in this customer's account balances during the last month. On what grounds should an anti-money laundering specialist prepare a suspicious transaction report?

Options

  • AThe increased activity is due to money order deposits.
  • BWire transfers are coming from a Financial Action Task Force member country.
  • CThe client changed his address without advising the institution.
  • DTravelers checks (cheques) were purchased for trips to a Non-Cooperative Countries and

Explanation

The customer activity that should trigger a suspicious transaction report is purchasing travelers checks (cheques) for trips to a Non-Cooperative Countries and Territories (NCCTs). This could indicate an attempt to evade currency reporting requirements, avoid sanctions or embargoes, or facilitate money laundering or terrorist financing through high-risk jurisdictions. NCCTs are countries or territories that have been identified by the Financial Action Task Force (FATF) as having serious deficiencies in their anti-money laundering and counter-terrorist financing regimes, and that pose a threat to the international financial system.

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