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 must financial institutions do regarding suspicious activity, as per FATF Recommendation 13?

Ignore the activity
Report it to their national Financial Intelligence Unit
Consult with the customers involved
Disclose it publicly

The correct answer is: Report it to their national Financial Intelligence Unit

Financial institutions are required to report suspicious activity to their national Financial Intelligence Unit (FIU) as per FATF Recommendation 13. This recommendation emphasizes the importance of providing timely and accurate information about suspected money laundering or terrorist financing activities to the appropriate authorities. The role of FIUs is crucial in analyzing reports of suspicious transactions and gathering intelligence to assist law enforcement agencies in identifying and investigating potential financial crimes. Reporting to the FIU helps create a centralized system for tracking and mitigating risks associated with money laundering and terrorism financing while ensuring that financial institutions fulfill their legal obligations. This process also supports global efforts to combat financial crime, as FIUs often collaborate internationally to share intelligence and promote transparency across borders. Hence, adherence to this recommendation enhances the integrity of the financial system and contributes to the overall effectiveness of national and international efforts against financial crime.