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

Which person in the financial institution is primarily responsible for overseeing compliance with AML regulations?

1. Chief Financial Officer

2. Chief Compliance Officer

3. Internal Auditor

4. Operations Manager

The correct answer is: Chief Compliance Officer

The Chief Compliance Officer plays a crucial role in ensuring that a financial institution adheres to all relevant anti-money laundering (AML) regulations and internal policies. This position is responsible for developing, implementing, and maintaining compliance programs that reflect the institution's commitment to preventing money laundering and financial crime. Having direct oversight over compliance activities, the Chief Compliance Officer also ensures that the organization is continuously monitoring its processes and reporting to regulatory bodies as required. This includes training staff on compliance issues and assessing the effectiveness of the AML program, making adjustments as necessary in response to regulatory changes or findings from audits. In contrast, other roles like the Chief Financial Officer focus primarily on the financial operations and health of the institution rather than compliance issues. The Internal Auditor is involved in evaluating the implementation of controls and operational effectiveness, which may include reviewing AML compliance, but they do not have the overarching responsibility for compliance itself. The Operations Manager is mainly concerned with the day-to-day activities of the institution and does not hold primary accountability for AML compliance. Each position is vital within the institution, but the Chief Compliance Officer is specifically charged with the mandate of ensuring that AML regulations are being followed effectively.