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

What does FATF SR Seven focus on improving?

1. Investment in public awareness campaigns

2. Customer identification measures for wire transfers

3. Monitoring financial services advertisements

4. Setting transaction limits for all transfers

The correct answer is: Customer identification measures for wire transfers

FATF SR Seven specifically emphasizes strengthening customer identification measures for wire transfers. This standard is crucial in the fight against money laundering and terrorist financing as it establishes requirements for identifying the sender and recipient of wire transfers. By implementing robust customer identification protocols, jurisdictions and financial institutions can ensure that they are able to trace transactions effectively and mitigate the risks associated with anonymous or unverified transfers. The focus on customer identification helps to prevent criminals from using wire transfers as a means to move illicit funds without being traced. Enhancing these measures is vital because it promotes greater accountability and transparency in the financial system, enabling authorities to detect and respond to suspicious activities related to the movement of money. Other options, while they may be related to broader anti-money laundering efforts, do not align with the specific requirements set forth in FATF SR Seven. For instance, investment in public awareness campaigns, monitoring financial services advertisements, and setting transaction limits can contribute to a comprehensive strategy against financial crime, but they do not specifically address the customer identification aspect that is central to wire transfers under this particular FATF Recommendation.