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

What is an automated sale?

1. A manual transfer of cash and securities

2. The use of electronic clearinghouses for transaction facilitation

3. A process of negotiating sales directly between two parties

4. A type of sale requiring physical documentation

The correct answer is: The use of electronic clearinghouses for transaction facilitation

An automated sale refers to transactions that are executed through electronic systems, often utilizing electronic clearinghouses. This approach streamlines the transaction process, enabling efficient and timely execution of trades without the need for manual intervention. By leveraging technology, automated sales reduce the potential for human error and enhance the overall speed of transaction processing. In contrast, the other choices describe processes that do not involve automation or electronic facilitation. Manual transfers, direct negotiations, and sales requiring physical documentation are traditional transaction methods that contrast with the efficiency and speed characteristic of automated sales. This distinction highlights the primary benefit of using electronic systems in financial transactions, which is the automation that minimizes operational delays and complexity.