CAMS Exam Dumps - ACAMS AML Certifications Questions and Answers

A (ISO): Ensures information security controls are aligned with AFC efforts, protecting sensitive data and reducing the risk of cyber-enabled financial crime.

D (DPO): Helps ensure compliance with data privacy laws and enables secure, lawful information-sharing for AML purposes.

“Collaboration with the ISO and DPO is critical to maintaining data security and privacy within AFC compliance frameworks.”(CAMS 6th Edition, Governance and Cross-Functional Collaboration)

Customer segmentation is a foundational element of effective transaction monitoring and is strongly aligned with the risk-based approach promoted by FATF and national regulators.

Customers differ significantly in their transaction behavior depending on factors such as customer type, industry, geography, products used, and transaction volumes. By grouping customers into similar peer segments, institutions can more accurately establish expected behavior and identify anomalies that may indicate suspicious activity.

Comparing customers across a single large population would mask meaningful deviations and generate excessive false positives or missed risks. Segmentation improves alert quality, efficiency, and investigative focus.

Customer segmentation is not limited to sanctions compliance; it is a core AML transaction monitoring practice used to detect money laundering, terrorist financing, and other financial crimes.

Using brokerage accounts like deposit accounts (e.g., frequent cash deposits or withdrawals) and conducting transactions through nominees or third parties are common red flags in the securities industry. These behaviors can obscure the origin or ownership of funds and are often used to facilitate money laundering.

Once there is reasonable suspicion of money laundering, the next critical step is to draft and file a suspicious activity report (SAR) with the relevant financial intelligence unit within the required regulatory timeframe. The SAR should contain a clear chronology of transactions, relevant customer details, and the rationale for suspicion to support potential investigation by authorities.

Regulatory Technology (RegTech) is a specialized subset of FinTech that focuses on improving how organizations meet regulatory and compliance obligations, including AML/CFT requirements. RegTech solutions leverage technologies such as automation, data analytics, artificial intelligence, and machine learning to enhance efficiency, accuracy, and scalability.

In the AML context, RegTech supports functions such as customer due diligence (CDD), transaction monitoring, sanctions screening, regulatory reporting, and record-keeping. These tools help financial institutions reduce manual processes, improve detection of suspicious activity, and respond more quickly to regulatory changes.

SupTech, by contrast, refers to supervisory technology used by regulators, not regulated institutions. The other options are not recognized regulatory terms.

Global regulators, including FATF and national supervisory authorities, actively encourage the responsible adoption of RegTech as part of a risk-based approach, provided appropriate governance, data quality, and model oversight are in place.