ACAMS Updated CAMS Exam Questions and Answers by aniyah

Customer onboarding is a critical AML/CFT process that must balance regulatory compliance with customer experience. Excessive friction can lead to customer dissatisfaction and abandonment.

Implementing internal or external tools—such as digital onboarding platforms, document collection tools, and workflow automation—can significantly streamline information gathering and reduce delays while maintaining compliance standards.

Additionally, consistent training of all employees involved in onboarding ensures that information requests are clear, consistent, and proportionate. Well-trained staff reduce rework, confusion, and unnecessary follow-ups, improving customer trust and efficiency.

Restricting decision-making to managers can slow processes, and delaying updates to processes reduces adaptability to evolving risks and regulatory expectations.

The UN Security Council has the authority to impose sanctions specifically to maintain or restore international peace and security.

AML/CFT frameworks worldwide require firms to apply a risk-based approach (RBA) to customer due diligence. Under FATF standards, the risk profile of the customer is the primary factor that determines how frequently CDD information should be refreshed.

Higher-risk customers—such as politically exposed persons (PEPs), customers operating in high-risk jurisdictions, or those with complex ownership structures—require more frequent reviews and updates to ensure information remains accurate and risks are appropriately mitigated. Lower-risk customers may be subject to less frequent refresh cycles.

Operational burden, cost, or automation capabilities are not valid drivers for determining CDD refresh frequency. Regulators expect firms to design processes that align with risk, even if this requires additional resources or system enhancements.

Therefore, customer risk profile is the foremost and decisive consideration when setting periodic CDD refresh timelines.

A: FIs should ensure they have a general understanding of virtual assets and VASP operations to assess risks accurately.

C: Enhanced KYC measures are recommended for VASPs due to their higher ML/TF risk profile.

“FIs must understand the business model and risk of VASPs and apply enhanced due diligence as required by FATF and regulatory guidance.”(CAMS 6th Edition, Virtual Assets and VASPs; FATF Guidance)

Incorrect:

B: While monitoring transactions is important, it’s not a primary initial consideration for onboarding.

D: The FI’s own holdings are not relevant to due diligence on VASPs.