Acams Exam CAMS Topic 1 Question 70 Discussion

Actual exam question for Acams's CAMS exam

Question #: 70
Topic #: 1

Which private banking situation requires due diligence actions to be implemented according to the AML principles of the Wolfsberg group?

AA local wealthy individual wants to become a customer of a local retail bank.

BA beneficial owner of an exchange house wants to open an account with the bank.

CA wealthy individual from a high-risk country wants to open an account with a private bank.

DA new customer asks to set up an exchange house using the bank as the correspondent.

Show Suggested Answer

Suggested Answer: C

by Markus at Mar 18, 2024, 09:20 PM

Limited Time Offer

25%

Off

Get Premium CAMS Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ammie

6 months ago

That's true, but I believe the focus here is on individual customers and their country of origin.

upvoted 0 times

...

Ty

6 months ago

But what about option B? Isn't a beneficial owner of an exchange house also a high-risk situation?

upvoted 0 times

...

Ashley

6 months ago

I agree, opening an account for a wealthy individual from a high-risk country requires due diligence.

upvoted 0 times

...

Leila

6 months ago

I think the answer is C.

upvoted 0 times

...

Theodora

6 months ago

C: But don't forget, even local wealthy individuals can be used for money laundering, so due diligence is still necessary.

upvoted 0 times

...

Verlene

6 months ago

D: I think the correct answer is A, as local wealthy individuals are typically lower risk customers.

upvoted 0 times

...

German

6 months ago

A: That's a good point, it's crucial for banks to carefully screen beneficial owners of exchange houses.

upvoted 0 times

...

Shawnda

7 months ago

C: I'm not sure, but I think answer B also makes sense because exchange houses can be a higher risk.

upvoted 0 times

...

Wilford

7 months ago

B: I agree, it's important to follow AML principles when dealing with high-risk customers.

upvoted 0 times

...

Bernardine

7 months ago

A: I think the answer is C, because wealthy individuals from high-risk countries need extra due diligence.

upvoted 0 times

...