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CAMS · Question #930

Which of the following businesses require enhanced or additional scenarios for identifying anomalous transactions? (Select Two.)

The correct answer is A. Companies operating in cash intense businesses not subject to licensing requirement C. Companies operating in cash intense businesses subject to licensing requirement. Both licensed and unlicensed cash-intensive businesses require enhanced transaction monitoring scenarios due to the elevated money laundering risk inherent in high-volume cash operations.

AML/CFT Compliance Programs

Question

Which of the following businesses require enhanced or additional scenarios for identifying anomalous transactions? (Select Two.)

Options

  • ACompanies operating in cash intense businesses not subject to licensing requirement
  • BCompanies operating hospitals and health-care services
  • CCompanies operating in cash intense businesses subject to licensing requirement
  • DCompanies producing pharmaceutical products and medical devices, companies active in the
  • ECompanies operating retail shops countrywide

How the community answered

(28 responses)
  • A
    71% (20)
  • B
    4% (1)
  • D
    18% (5)
  • E
    7% (2)

Why each option

Both licensed and unlicensed cash-intensive businesses require enhanced transaction monitoring scenarios due to the elevated money laundering risk inherent in high-volume cash operations.

ACompanies operating in cash intense businesses not subject to licensing requirementCorrect

Unlicensed cash-intensive businesses require enhanced monitoring because the absence of regulatory licensing removes a supervisory control layer, increasing the risk of commingling illicit funds with legitimate cash flows without detection.

BCompanies operating hospitals and health-care services

Hospitals and healthcare services face AML obligations but are not classified as cash-intensive businesses in AML typology frameworks, so standard monitoring scenarios typically apply.

CCompanies operating in cash intense businesses subject to licensing requirementCorrect

Licensed cash-intensive businesses also require enhanced monitoring because their high cash transaction volumes create significant opportunities for structuring, layering, and other typologies regardless of their licensed status.

DCompanies producing pharmaceutical products and medical devices, companies active in the

Pharmaceutical and medical device companies are associated with trade-based money laundering risks, but this incomplete option does not describe a category specifically requiring enhanced cash anomaly detection scenarios.

ECompanies operating retail shops countrywide

Retail shops handling cash present some risk, but they are not specifically categorized in AML frameworks as requiring enhanced anomalous transaction scenarios equivalent to businesses whose primary model is cash-intensive.

Concept tested: Enhanced AML monitoring for cash-intensive businesses

Source: https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Rba-financial-institutions.html

Topics

#cash-intensive businesses#anomalous transactions#enhanced monitoring#risk-based approach

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