ACAMS Updated CAMS Exam Questions and Answers by saul

Human trafficking and modern slaveryinvolveillicit financial transactions, often conductedthrough banks, money service businesses (MSBs), or virtual assets.

Option B (Correct):Frequent payments for online advertisementscan indicaterecruitment for illicit labor or traffickingoperations.

Option C (Correct):Incoming funds from third-party processors with unclear originatorssuggestconcealed financial flows linked to illicit activities.

Why Other Options Are Incorrect:

Option A (Incorrect):Transactional activity with a virtual currency exchange alone is not a strong human trafficking red flag.

Option D (Incorrect):Cash payments to workers could indicate labor law violations but do not necessarily indicate human trafficking.

Common Financial Red Flags for Human Trafficking:

Unexplained cash deposits and withdrawals from multiple accounts.

Frequent wire transfers to high-risk jurisdictions.

Use of prepaid cards to move funds anonymously.

Best Practices for Detecting & Preventing Human Trafficking-Related Transactions:

Train frontline staff to recognize financial indicators of trafficking.

Monitor unusual transaction patterns in industries with high labor exploitation risks.

File Suspicious Activity Reports (SARs) when trafficking-related transactions are suspected.

TheFATF Grey Listconsists of countries withAML/CFT deficienciesthat havecommitted to reforms.

Option C (Correct):Grey-listed jurisdictionsare underincreased monitoringand mustaddress identified deficiencieswithin a set timeframe.

Option A (Incorrect):Yellow noticesare used byINTERPOL, not FATF.

Option B (Incorrect):Red noticesrefer toINTERPOL arrest warrants, not FATF monitoring lists.

Option D (Incorrect):FATF doesnot maintain a "white list"of compliant jurisdictions.

TheUSA PATRIOT Actincludes provisions allowingthe U.S. government to seize assets linked to financial crime, even when held in foreign financial institutions.

Option A (Correct):Section 319(a) of the USA PATRIOT Actprovides U.S. regulators with the authority toseize funds deposited in U.S. correspondent accounts of foreign banks if linked to illicit activity.

Option B (Incorrect):Section 314(a)focuses oninformation sharing between law enforcement and financial institutions.

Option C (Incorrect):Section 319(b)enables U.S. authorities toseize funds linked to foreign correspondent banking accounts, but319(a) specifically deals with extraterritorial forfeiture.

Option D (Incorrect):Section 314(b)allowsfinancial institutions to voluntarily share AML-related information.

Why This Matters:

Foreign banks using U.S. correspondent accounts can be subject to U.S. jurisdiction.

Helps U.S. law enforcement disrupt global money laundering networks.

Encourages financial institutions to enhance correspondent banking due diligence.