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Exam CAMS topic 1 question 55 discussion

Actual exam question from ACAMS's CAMS
Question #: 55
Topic #: 1
[All CAMS Questions]

The purpose of an anti-money laundering program should be to do what?

  • A. Detect all illegal activity perpetrated by customers
  • B. Avoid criticism and sanctions from government regulators
  • C. Focus monitoring efforts on riskier transactions and customers
  • D. Detect and report cash structuring and suspicious wire transactions
Show Suggested Answer Hide Answer

Suggested Answer: C

Comments

MartaAri
Highly Voted 9 months ago
According to the Tests from the guide #37 What is the reasoning behind implementing a “risk-based anti-money laundering approach”? B. Institutions can best use their limited resources to focus on matters where the money laundering risks are highest.
upvoted 6 times
LHH
1 week, 2 days ago
You are talking about "risk-based" approach, the question mentions anti-money laundering in general as a whole. I think the answer is A.
upvoted 1 times
LHH
1 week, 2 days ago
The primary goal of an AML/CFT program is to protect the organization against money laundering, terrorist financing and other financial crimes and to ensure that the organization is in full compliance with relevant laws and regulations. For that reason, designing, structuring and implementing these programs should be the top priorities of any financial institution. Chapter 3- Page 141.
upvoted 1 times
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Kasteros
Most Recent 4 days, 9 hours ago
A is out, as it is impossible to detect all activity, B is obiously out as iti s not a purpose of AML program, D is out as there are various ways to launder money, not only wires and structuring, there are ACHs, money orders/checks and other products that AML program needs to Focus on, that only leaves C as correct answer.
upvoted 1 times
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9000
4 days, 16 hours ago
It should not be A, there is no way a bank can 100% detect all illegal activities but should only try to do so on a risk based approach.
upvoted 1 times
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LordMarco
2 weeks, 2 days ago
its A , The purpose of the AML rules is to help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.
upvoted 2 times
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DLN_123
2 months ago
C is correct. Chapter 3 paragraph 2, 1st Sentence— An AML/CFT program should be risk based
upvoted 2 times
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zakigia1234
3 months ago
can somebody give reference
upvoted 1 times
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AML_Investigator
5 months, 1 week ago
I believe the given answer is correct
upvoted 3 times
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deepavinod
5 months, 2 weeks ago
think A is the answer
upvoted 1 times
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