CAMS · Question #672
CAMS Question #672: Real Exam Question with Answer & Explanation
The correct answer is B. Confirm that neither the beneficiary nor the originator are sanctioned parties. C. Request supporting documents, including invoices and contracts, to confirm the purpose of the D. Check for negative news in public sources on the sender and receiver.. When investigating a potentially suspicious cross-border payment, a financial institution should follow risk-based due diligence procedures. Option B (Correct): Sanctions screening is critical to ensure the originator or beneficiary is not listed on OFAC, EU, UN, or other sanctio
Question
Options
- ACall the receiving individual to review identity verification documents.
- BConfirm that neither the beneficiary nor the originator are sanctioned parties.
- CRequest supporting documents, including invoices and contracts, to confirm the purpose of the
- DCheck for negative news in public sources on the sender and receiver.
- ESend a 314(b) request to the corporation's bank in Hong Kong.
Explanation
When investigating a potentially suspicious cross-border payment, a financial institution should follow risk-based due diligence procedures. Option B (Correct): Sanctions screening is critical to ensure the originator or beneficiary is not listed on OFAC, EU, UN, or other sanctions lists. Option C (Correct): Requesting supporting documents (e.g., invoices, contracts) helps determine whether the transaction is consistent with the customer's profile. Option D (Correct): Conducting negative news (adverse media) checks helps identify financial crime risks, such as fraud or money laundering.
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