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

Which role is responsible for the oversight of an AML compliance program?

1. Account Executive

2. AML Compliance Officer

3. Chief Financial Officer

4. Risk Management Consultant

The correct answer is: AML Compliance Officer

The role that is responsible for the oversight of an Anti-Money Laundering (AML) compliance program is crucial to ensure that financial institutions adhere to legal and regulatory requirements regarding money laundering prevention. The AML Compliance Officer is specifically trained and designated to establish, implement, and maintain the AML compliance framework within the organization. This includes conducting risk assessments, developing policies and procedures, training staff, monitoring transactions, and ensuring that the institution complies with applicable laws and regulations. The AML Compliance Officer typically reports directly to senior management and is often involved in interacting with regulatory bodies, ensuring that the organization's AML practices are effective and up-to-date. This role is vital in identifying and mitigating risks related to money laundering and terrorist financing, thus safeguarding the institution against potential legal and reputational risks. Other roles, such as those mentioned, do not share the same level of specific responsibility for the oversight of AML programs. For instance, while a Chief Financial Officer may be involved in the broader financial strategies and operations, they are not solely tasked with AML compliance oversight. Similarly, Account Executives and Risk Management Consultants may play supportive roles but lack the dedicated authority and accountability when it comes to AML compliance.