ACAMS Updated Advanced-CAMS-Audit Exam Questions and Answers by oona

Identifying inherent risks linked to the bank’s products and services is critical to tailor the audit scope and address high-risk areas comprehensively​​.

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.

Explanation:Evaluating design effectiveness involves determining whether policies and procedures align with regulatory standards, which sets the foundation for a compliant AML/CFT program. This is a design-level assessment rather than testing implementation or outcomes, which would pertain to operational effectiveness​​​.

Deficiency in Reporting Metrics:

AML compliance frameworks require metrics to track trends and unusual patterns in suspicious activity reports (SARs). A lack of such metrics is a deficiency that undermines monitoring and oversight​​.

Why This is the Appropriate Step:

Identifying and documenting deficiencies ensures accountability and facilitates corrective action, aligning with AML audit standards.