Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

According to FATF Recommendation 30, what should competent authorities be provided with?

1. Only financial resources

2. Adequate financial, human, and technological resources

3. Marketing tools for outreach

4. External audits for accountability

The correct answer is: Adequate financial, human, and technological resources

FATF Recommendation 30 emphasizes the necessity for competent authorities to possess adequate resources to effectively carry out their responsibilities related to anti-money laundering (AML) and combating the financing of terrorism (CFT). This recommendation sets forth that these authorities must be equipped not just with financial resources, but also with sufficient human and technological resources. Having a well-rounded set of resources ensures that competent authorities can investigate suspicious activities, enforce compliance, and carry out necessary inspections and audits. Financial resources alone would limit an authority's capacity to operate effectively. Human resources, including trained personnel, are crucial for interpreting data, conducting investigations, and engaging with other stakeholders. Technological resources are increasingly vital for analyzing large sets of data, identifying trends, and enhancing overall operational efficiency. The other options focus narrowly on specific types of resources or tools that do not align with the comprehensive approach outlined in Recommendation 30. For instance, marketing tools for outreach do not directly contribute to the operational effectiveness of competent authorities in AML/CFT efforts, and external audits, while important for accountability, do not ensure that authorities are equipped to fulfill their roles adequately.