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

What is a requirement for a financial institution with Exempt Accounts?

1. They can operate without supervision

2. They do not need to document transactions

3. They must continuously monitor transactions

4. They are not allowed to charge fees

The correct answer is: They must continuously monitor transactions

Financial institutions with Exempt Accounts are required to continuously monitor transactions. This requirement is in place to ensure that, despite the exemption from certain regulatory obligations, these accounts are still subject to scrutiny to identify any unusual or suspicious transaction patterns. This ongoing oversight helps maintain the integrity of the financial system and aids in the detection of potential money laundering activities or other illicit behavior. Maintaining vigilance through continuous monitoring is crucial because exempt accounts may otherwise present higher risks due to their more limited reporting requirements. Monitoring helps mitigate these risks by ensuring that any deviations from expected transaction behavior are quickly identified and investigated. The other options do not reflect the regulatory practices surrounding Exempt Accounts. For instance, while there may be some leeway in terms of certain requirements, financial institutions always have some level of supervision and must ensure proper documentation for compliance with anti-money laundering laws. Furthermore, there are no specific regulations preventing these institutions from charging fees related to the maintenance of these accounts.