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

What type of reports does FINTRAC produce?

1. Tax reports

2. Financial transaction analysis reports

3. Investment performance reports

4. Non-compliance reports

The correct answer is: Financial transaction analysis reports

FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, is primarily focused on anti-money laundering (AML) and the combatting of terrorist financing. The type of reports it produces plays a crucial role in these areas by analyzing financial transactions to identify suspicious activities and patterns that may indicate money laundering or terrorist financing. The financial transaction analysis reports produced by FINTRAC summarize and provide insights into suspicious transactions, trends, and behaviors observed within the financial system. These reports are instrumental for law enforcement agencies, providing evidence and lead information that can assist in investigations related to financial crimes. They help in establishing connections between transactions and potential criminal activities, thus aiding in the overall goal of preventing financial crimes. In contrast, the other options either do not align with FINTRAC's mandate or are outside its scope. Tax reports focus on tax compliance, which is not the primary concern of FINTRAC. Investment performance reports are related to the performance of financial investments and are prepared by investment firms or analysts. Non-compliance reports would pertain to regulatory compliance issues but do not capture the essence of FINTRAC's primary outputs, which specifically analyze financial transactions for suspicious activity.