CAMS Question #635: Real Exam Question with Answer & Explanation

Question

Options

• AThe customer remitted monies in several transactions to the account of a recognized charity non-
• BThe customer has bought and sold several real estate properties over the last year.
• CThe credit transactions in the account relate mostly to salary and rental income from property.
• DThe account received a large cash deposit followed by systematic automated teller machine
• EThe customer conducts multiple cash transactions on a regular basis which do not match the

Explanation

Given the customer's prior association with a terrorist group, large structured cash deposits followed by ATM withdrawals and cash transactions inconsistent with the customer's profile are the highest-priority escalation triggers.

Common mistakes.

• A. While terrorist financing through charities is a known typology, remittances to a recognized and legitimate charity are not inherently suspicious on their own and do not rise to the same escalation priority as unexplained cash activity.
• B. Buying and selling real estate over the prior year is not inherently suspicious without additional indicators such as unexplained funding sources or rapid price manipulation, and is less alarming in isolation than the cash-related activity present in this account.
• C. Credit transactions consisting of salary and rental income represent documented and explainable sources of funds consistent with a legitimate financial profile, making them the lowest-risk activity in the account for escalation purposes.

Concept tested. Terrorist financing indicators in transaction monitoring alerts

Reference. https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Guidance-on-terrorist-financing-risk-assessment.html

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