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

What should competent authorities do to promote international cooperation?

1. Focus only on domestic concerns

2. Provide the widest possible range of international cooperation

3. Limit cooperation to financial crimes

4. Only share information with regional partners

The correct answer is: Provide the widest possible range of international cooperation

The emphasis on providing the widest possible range of international cooperation is crucial for promoting effective responses to money laundering and other financial crimes. International cooperation helps to ensure that different jurisdictions can work together to combat the complexities of financial crime, which often transcends borders. By engaging in broad cooperation, competent authorities can share intelligence, resources, and best practices that enhance their capabilities to detect and prevent illicit activities. Focusing solely on domestic concerns would limit the effectiveness of efforts to combat international money laundering, as many criminal schemes involve cross-border transactions and actors. Similarly, restricting cooperation only to financial crimes neglects the interconnectedness of various types of illicit activities that can facilitate money laundering, such as drug trafficking, human trafficking, and terrorism financing. Lastly, confining information sharing to regional partners would create gaps in intelligence and oversight, as major financial criminals often operate globally, necessitating collaboration beyond immediate geographical boundaries. Thus, promoting a comprehensive approach to international cooperation is vital in effectively addressing and mitigating financial crime risks.