Exam CAMS Topic 2 Question 450 Discussion
Actual exam question for ACAMS's CAMS exam
Question #: 450
Topic #: 2
Question #: 450
Topic #: 2
Combating the Financing of Terrorism (CFT)]
Whichpractices should financial institutions (FIs) adoptwhen determining thetimeline for completing an internal AML investigationandfiling a Suspicious Activity Report (SAR) to the Financial Intelligence Unit (FIU)?
Whichpractices should financial institutions (FIs) adoptwhen determining thetimeline for completing an internal AML investigationandfiling a Suspicious Activity Report (SAR) to the Financial Intelligence Unit (FIU)?
Suggested Answer: A Vote an answer
Thetimely filing of SARs is legally mandated, and financial institutions mustfollow jurisdiction-specific reporting deadlines.
* Option A (Correct):Regulatory requirements dictate SAR filing deadlines(e.g., in the U.S., SARs must be filed within30 calendar daysof detecting suspicious activity).
* Option B (Incorrect):30 days is the U.S. standard, but different jurisdictions may havedifferent SAR deadlines(e.g.,EU AMLD mandates prompt reporting).
* Option C (Incorrect):Complexity-based reporting delaysare not permitted if theyexceed regulatory timelines.
* Option D (Incorrect):Relying solely on professional judgmentrather than regulatory rules can lead to non-compliance.
SAR Filing Deadlines in Different Jurisdictions:
Jurisdiction
SAR Filing Deadline
United States (FinCEN)
30 calendar days(60 days if no suspect is identified)
United Kingdom (FCA/NCA)
As soon as practicable
European Union (6AMLD)
"Promptly" (no fixed number of days)
Australia (AUSTRAC)
3 business daysfor terrorism financing,14 business daysfor other cases
Why Timely SAR Filing Matters:
* Delays in reporting can result in regulatory penalties.
* Early SAR filing enables FIUs to take swift action against financial crime.
* Non-compliance can lead to fines, criminal charges, and reputational damage.
Reference:
FATF Recommendation 20 (Reporting Suspicious Transactions)
FinCEN SAR Filing Requirements
6th EU Anti-Money Laundering Directive (6AMLD)
* Option A (Correct):Regulatory requirements dictate SAR filing deadlines(e.g., in the U.S., SARs must be filed within30 calendar daysof detecting suspicious activity).
* Option B (Incorrect):30 days is the U.S. standard, but different jurisdictions may havedifferent SAR deadlines(e.g.,EU AMLD mandates prompt reporting).
* Option C (Incorrect):Complexity-based reporting delaysare not permitted if theyexceed regulatory timelines.
* Option D (Incorrect):Relying solely on professional judgmentrather than regulatory rules can lead to non-compliance.
SAR Filing Deadlines in Different Jurisdictions:
Jurisdiction
SAR Filing Deadline
United States (FinCEN)
30 calendar days(60 days if no suspect is identified)
United Kingdom (FCA/NCA)
As soon as practicable
European Union (6AMLD)
"Promptly" (no fixed number of days)
Australia (AUSTRAC)
3 business daysfor terrorism financing,14 business daysfor other cases
Why Timely SAR Filing Matters:
* Delays in reporting can result in regulatory penalties.
* Early SAR filing enables FIUs to take swift action against financial crime.
* Non-compliance can lead to fines, criminal charges, and reputational damage.
Reference:
FATF Recommendation 20 (Reporting Suspicious Transactions)
FinCEN SAR Filing Requirements
6th EU Anti-Money Laundering Directive (6AMLD)
by Veromca at Apr 27, 2025, 07:27 AM
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