CAMS Question #931: Real Exam Question with Answer & Explanation

The correct answer is D. Data privacy laws can restrict the sharing of customer information, while financial inclusion. Data privacy laws and financial inclusion policies create the most direct and legally binding tensions with AML/CFT compliance requirements for financial institutions.

Question

Which of the following laws or regulations can impact the application of AML/CFT programs and require financial institutions (r" Is) to balance multiple compliance requirements?

Options

AConsumer protection laws may intersect will) AML/CFT requirements when handling customer
BAML/CFT laws are the primary focus for FIs, and other regulations like data privacy and
CEnvironmental, social, and governance (ESG) frameworks can influence a Fl's risk management
DData privacy laws can restrict the sharing of customer information, while financial inclusion

Explanation

Data privacy laws and financial inclusion policies create the most direct and legally binding tensions with AML/CFT compliance requirements for financial institutions.

Common mistakes.

A. Consumer protection laws intersect with AML in limited ways but do not impose the same direct legal conflicts as data privacy or financial inclusion frameworks, making this a secondary rather than primary compliance tension.
B. This choice incorrectly characterizes other regulations as non-impactful, when in reality data privacy, consumer protection, and other frameworks impose binding obligations that directly constrain how AML/CFT programs operate.
C. ESG frameworks influence strategic risk appetite and reporting but do not impose direct legal requirements that conflict with AML/CFT program mechanics in the same binding way as data privacy laws.

Concept tested. Intersecting regulatory obligations affecting AML/CFT compliance

Reference. https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Recommendations.html

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