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

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Anti-Money Laundering Specialist Certification (CAMS) exam. Study with multiple choice questions, each with hints and explanations. Boost your chances of success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does the acronym CFT stand for in anti-money laundering contexts?

Controlling Financial Transactions
Countering the Financing of Terrorism
Compiling Financial Techniques
Collaborative Financial Tracking

The correct answer is: Countering the Financing of Terrorism

In the context of anti-money laundering, CFT stands for Countering the Financing of Terrorism. This term is critical as it refers to the set of measures and regulations established to prevent and disrupt the funding of terrorist activities. CFT is often viewed in conjunction with AML (Anti-Money Laundering) efforts, as both aim to safeguard the financial system from illicit activities. The focus of CFT encompasses identifying, investigating, and seizing assets used in or intended for terrorist financing. This can involve reviewing financial transactions, monitoring for unusual patterns of behavior, and cooperating with international regulations and guidelines. Understanding CFT is essential for professionals in the field, especially considering the increasing emphasis on measures that deter not just money laundering, but also the broader implications of financing activities that threaten national security. Robust CFT policies contribute to the overall integrity of the financial system and ensure compliance with international standards.