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

Which of these is a responsibility of supervisors regarding compliance?

1. To create new financial regulations

2. To conduct random audits

3. To compel production of information

4. To close non-compliant institutions

The correct answer is: To compel production of information

The responsibility of supervisors regarding compliance primarily involves their authority to compel the production of information. This role is crucial in ensuring that organizations adhere to established laws and regulations, as supervisors must have access to the necessary documentation and data to assess compliance effectively. By compelling production of information, supervisors can evaluate whether institutions are following the rules and identify any areas of non-compliance that need to be addressed. Conducting random audits plays a role in evaluating compliance but is typically one method among many that supervisors may use rather than a direct responsibility. Creating new financial regulations is the domain of regulatory bodies or legislatures, rather than supervisors, who implement and ensure adherence to existing regulations. Closing non-compliant institutions is also an extreme action and not a routine responsibility, as supervisors generally opt for corrective actions before considering such measures. The core aspect of a supervisor’s role revolves around ensuring transparency and accountability through their ability to gather and review necessary information.