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

What elements should be included in AML/CFT programs as per FATF Recommendation 15?

1. Only policies and employee screenings

2. Policies, training, and testing through audits

3. Only ongoing training for employees

4. No specific elements are needed

The correct answer is: Policies, training, and testing through audits

FATF Recommendation 15 outlines specific elements that should be included in Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) programs. The correct choice includes essential components such as policies, training, and testing through audits. Including comprehensive policies in AML/CFT programs ensures that an organization has established clear guidelines and controls to prevent money laundering and financing of terrorism. These policies are fundamental for setting the framework within which employees operate and make decisions. Training is also critical; ongoing education helps employees recognize red flags associated with money laundering and terrorist financing and equips them with the knowledge to adhere to policies effectively. Proper training also enhances the overall compliance culture within the organization. Additionally, testing through audits is a vital part of the framework. Regular audits allow an organization to evaluate the effectiveness of its AML/CFT programs. This process helps identify areas for improvement, ensuring that the organization adapts to new threats and remains compliant with regulatory expectations. In contrast, other choices either lack completeness or specific elements. For instance, options that suggest only one aspect, such as policies or ongoing training, would neglect the multifaceted approach needed to combat these financial crimes effectively. Moreover, stating that no specific elements are needed contradicts the standards