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

What type of transactions does AUSTRAC monitor?

1. Only international remittances

2. All banking transactions

3. Financial transactions for signs of money laundering

4. Stock market trades

The correct answer is: Financial transactions for signs of money laundering

AUSTRAC primarily monitors financial transactions for signs of money laundering. This involves analyzing various types of financial activities to detect suspicious patterns that may suggest money laundering or terrorism financing. By focusing on financial transactions, AUSTRAC can identify and investigate behaviors that deviate from normal activity, enabling the organization to take necessary regulatory actions and collaborate with law enforcement agencies. The rationale for monitoring financial transactions rather than just a specific type, like international remittances or stock market trades, lies in the comprehensive approach to combating money laundering. AUSTRAC looks for suspicious behaviors across the entire financial spectrum, considering that money laundering can occur through various means, not limited to banking, remittances, or stock trading alone. In contrast, monitoring only international remittances or all banking transactions would not capture the full range of potential money laundering activities occurring in different financial sectors. This highlights the importance of a broad and inclusive monitoring strategy in identifying potential risks associated with illicit activities.