CAMS Question #613: Real Exam Question with Answer & Explanation

Question

Options

• AFile a suspicious activity report on the employee's activities if management thinks it is suspicious.
• BConduct an investigation by gathering and analyzing information on the employee.
• CAutomatically file a police report about the employee's potential misconduct.
• DInitiate civil litigation against the employee to recover damages for losses incurred.

Explanation

According to the ACAMS Study Guide for the CAMS Certification Exam (6th edition), page 215, one of the best practices for banks to prevent and detect mortgage fraud is to conduct internal investigations when there are red flags or suspicions of fraud involving bank employees. The investigation should include reviewing the employee's loan files, interviewing the employee and other relevant parties, verifying the information and documents provided by the employee, and documenting the findings and actions taken. Filing a suspicious activity report (SAR) may be appropriate after the investigation is completed and the bank has reasonable grounds to suspect fraud. Filing a police report or initiating civil litigation may also be options depending on the outcome of the investigation and the bank's policies, but they are not the first steps to take when the bank suspects an employee of mortgage fraud.

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