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

Why is it important for regulators to monitor 'Bureau de Change' services?

1. To improve foreign exchange rates

2. To ensure compliance with AML regulations

3. To increase profits from currency exchanges

4. To promote tourism and travel services

The correct answer is: To ensure compliance with AML regulations

Monitoring 'Bureau de Change' services is crucial for ensuring compliance with Anti-Money Laundering (AML) regulations. These services, which facilitate the exchange of currency, can be at risk of being exploited for illicit financial activities. By closely overseeing these operations, regulators can identify and mitigate potential money laundering risks, ensuring that transactions are transparent and that the entities involved adhere to established legal and regulatory standards. This monitoring helps to prevent financial crimes such as terrorist financing and money laundering, which can have broader implications for the financial system and society as a whole. Ensuring compliance with AML regulations also contributes to maintaining the integrity of the financial sector, as it creates a safer environment for legitimate economic activities. Therefore, the focus on compliance reinforces the importance of accountability and transparency in the currency exchange business, which is essential for protecting the economy and society from the detrimental effects of financial crime.