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ACAMS Advanced-CAMS-Audit Exam
Advanced CAMS-Audit Certification (Page 7 )

Updated On: 9-Feb-2026
Page 3 of 19
PDF with 90 Questions

Which best explains why the auditor rates the audit finding on sanction screening severity high?

  1. The efficiency of the sanction screening tool is not properly tuned due to the wrong sanctions lists.
  2. The finding is on a different audit topic than the KYC related findings.
  3. The tool might miss potential sanction violations given the long intervals before the sanctions lists are updated.
  4. The organization might have reported a sanction breach that is not a current sanction violation.

Answer(s): C

Explanation:

Severity Justification:
Infrequent updates of sanction lists create significant risks of missing sanctioned entities, increasing legal, financial, and reputational risks for the institution. FATF Recommendations emphasize the need for timely and accurate sanctions screening to prevent facilitation of sanctioned transactions.
Critical Evidence:
A delayed update to sanction lists is cited as a key failure point in regulatory penalties and compliance audits.



Which KYC-related finding poses the most risk to the organization?

  1. KYC requirements being considered a low priority not designed into business processes and implemented after product launch
  2. Sanctions fists that are updated on a periodic basis following an annual risk assessment
  3. KYC processes not being integrated into the business and associated application systems
  4. Backlogs and delays in maintaining client files in accordance with the organization's policy

Answer(s): A

Explanation:

KYC integration is fundamental to ensuring that anti-money laundering controls are effective from the outset of client onboarding. Delayed implementation of KYC increases the risk of onboarding high-risk customers without adequate due diligence.
Advanced CAMS-Audit documentation stresses the importance of embedding KYC into business processes during product design and rollout phases to mitigate risks. Neglecting this requirement can expose the organization to severe regulatory penalties and reputational damage.



Which is the most significant risk associated with KYC requirements being considered a low priority not designed into processes and subsequently implemented after the products are already launched?

  1. Product launches may not be adequately prepared.
  2. Client experience improves as accounts can be opened more quickly.
  3. Product launches will motivate frontline to get more customers.
  4. Frontline will not complete adequate CD

Answer(s): D

Explanation:

Critical Impact:
Absence of CDD processes during product launch leaves the institution exposed to onboarding high- risk customers without proper risk assessment.
Guidelines and Compliance:
FATF standards emphasize embedding CDD in all stages of customer interaction to mitigate ML/TF risks.



Which should the external auditor recommend to ensure that the institution did not facilitate transactions involving a sanctioned person?

  1. Re-screen all transactions over the period of time when the updated sanction lists were not uploaded against the current sanctions lists.
  2. Perform a security risk and access assessment on the sanction screening tool to ensure more timely sanctions lists are uploaded.
  3. Re-screen all transactions based on the sanctions lists that were active at that time but not uploaded.
  4. Periodically monitor the sanctions lists uploaded by the screening tool to ensure the most up-to- date lists are in the system.

Answer(s): A

Explanation:

Recommended Action:
Re-screening ensures compliance with sanctions and identifies potential violations retrospectively. This is a critical regulatory requirement for addressing gaps in screening coverage.
FATF and Basel Guidelines:
Emphasize retrospective reviews in cases of system lapses to maintain the integrity of the sanctions compliance program.



Which conclusion should the auditor make regarding the staff attendance of the periodic AML training program organized by the bank?

  1. Staff attendance is complete because the training is mandatory for staff in the business, operations compliance and senior management whose duties involve knowledge of AML controls and processes.
  2. Staff attendance is complete because all staff in the institution are required to attend the AML training as part of the staff onboarding process.
  3. Staff attendance is incomplete because the board of directors is not part of the staff required to attend the periodic trainings, and there is no other specially designed AML training for the board.
  4. Staff attendance is incomplete because the compliance officer or the delegates are not part of the staff facilitating the 3-hour periodic AML training.

Answer(s): C

Explanation:

Importance of AML Training for All Levels of an Institution:
Advanced CAMS-Audit and FATF emphasize that AML training programs should be inclusive of all stakeholders, including senior management and board members, as they are integral to establishing an effective AML/CFT compliance culture.
Board-Level Training Specifics:
Directors require tailored AML training to address strategic oversight responsibilities rather than operational controls. Periodic training is mandatory to keep the board updated on regulatory changes and institutional risk profile adjustments.
Audit Observation:
Exclusion of the board from AML training reflects a gap in the institution's AML framework, potentially exposing it to regulatory scrutiny.
Reference to AML/CFT Standards:
FATF Recommendations mandate training for all levels of an institution, explicitly highlighting senior management and governance roles in compliance efforts.






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