Exam CAMS Topic 3 Question 435 Discussion
Actual exam question for ACAMS's CAMS exam
Question #: 435
Topic #: 3
Question #: 435
Topic #: 3
Whichchanges at a financial institution (FI) should trigger an enterprise-wide reassessment of its inherent AML risk exposure? (Select Three.)
Suggested Answer: A,B,E Vote an answer
Anenterprise-wide risk assessment (EWRA)must beupdated when major changesoccur thatimpact AML risk exposure.
* Option A (Correct):New products and services(e.g., cryptocurrency trading, private banking)can introduce new money laundering risks.
* Option B (Correct):Restructuring compliance teams can impact AML oversightand risk assessment effectiveness.
* Option E (Correct):Mergers and acquisitionsmay bringlegacy compliance issues and different risk cultures.
Why Other Options Are Incorrect:
* Option C (Incorrect):Changes in product leadership do not automatically change risk exposureunless the product itself changes.
* Option D (Incorrect):Using new technology for existing products does not inherently change AML risks, thoughnew digital products might.
Best Practices for Enterprise-Wide AML Risk Assessment Updates:
* Review AML program effectiveness before launching new services.
* Assess legacy compliance issues when acquiring or merging with another entity.
* Align risk frameworks with regulatory changes.
Reference:
FATF Recommendation 1 (Risk-Based Approach to AML)
Wolfsberg Group Enterprise-Wide Risk Assessment Guidelines
6th EU AML Directive (6AMLD) on Financial Institution Risk Management
* Option A (Correct):New products and services(e.g., cryptocurrency trading, private banking)can introduce new money laundering risks.
* Option B (Correct):Restructuring compliance teams can impact AML oversightand risk assessment effectiveness.
* Option E (Correct):Mergers and acquisitionsmay bringlegacy compliance issues and different risk cultures.
Why Other Options Are Incorrect:
* Option C (Incorrect):Changes in product leadership do not automatically change risk exposureunless the product itself changes.
* Option D (Incorrect):Using new technology for existing products does not inherently change AML risks, thoughnew digital products might.
Best Practices for Enterprise-Wide AML Risk Assessment Updates:
* Review AML program effectiveness before launching new services.
* Assess legacy compliance issues when acquiring or merging with another entity.
* Align risk frameworks with regulatory changes.
Reference:
FATF Recommendation 1 (Risk-Based Approach to AML)
Wolfsberg Group Enterprise-Wide Risk Assessment Guidelines
6th EU AML Directive (6AMLD) on Financial Institution Risk Management
by Hubery at Sep 12, 2025, 08:13 AM
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