CAMS Exam Questions: 50 Free Practice Questions [2026]

Preparing for the CAMS exam requires more than reading the ACAMS study guide cover to cover. You need to practice applying concepts under exam conditions — identifying the correct answer under time pressure and understanding why it is correct.

These 50 CAMS exam questions cover all four domains tested on the Certified Anti-Money Laundering Specialist examination. Each question is followed by the correct answer and a brief explanation to reinforce the concept.

Use these CAMS exam questions to benchmark your readiness, identify knowledge gaps, and build confidence before exam day.

What the CAMS Exam Tests

Before you work through the CAMS exam questions, here is a quick overview of the four domains the CAMS exam covers. The ACAMS CAMS examination is the globally recognized standard for AML professionals — you can review the official candidate handbook at ACAMS.org.

The full exam contains 120 questions. You have 3.5 hours to complete it. Questions are multiple-choice with a single best answer.

For a complete breakdown of the exam format, structure, and study plan, see the CAMS Exam Guide 2026.

50 CAMS Exam Questions: How to Use This Practice Set

These CAMS exam questions are organized by domain. Work through each CAMS exam question before checking the answer. If you get it wrong, read the explanation carefully — understanding why the correct answer is right matters more than memorizing the answer itself.

A score of 70% or above on this set of CAMS exam questions is a reasonable indicator of solid preparation. Below 60% suggests focused review is needed, particularly in the domains where you miss the most CAMS exam questions.

Domain 1 CAMS Exam Questions: Risks and Methods of Money Laundering (1–13)

Question 1. The three stages of money laundering, in the correct order, are:

A) Integration, Placement, Layering

B) Placement, Integration, Layering

C) Placement, Layering, Integration

D) Layering, Placement, Integration

Answer: C — Placement, Layering, Integration

Placement is the introduction of criminal proceeds into the financial system. Layering obscures the trail through a series of transactions. Integration reintroduces the funds as apparently legitimate assets.

Question 2. Which of the following is most commonly associated with the placement stage of money laundering?

A) Wire transfers between shell companies

B) Cash-intensive business commingling

C) Real estate purchases through nominees

D) Trade-based manipulation of invoices

Answer: B — Cash-intensive business commingling

Placement involves introducing physical cash into the financial system. Commingling illicit cash with legitimate revenue from a cash-intensive business (restaurant, car wash, etc.) is a classic placement technique.

Question 3. Terrorist financing differs from money laundering primarily because:

A) Terrorist financing involves larger transaction volumes

B) The source of funds in terrorist financing may be legitimate

C) Terrorist financing is not regulated under international standards

D) Money laundering always involves state actors

Answer: B — The source of funds in terrorist financing may be legitimate

In money laundering, funds originate from criminal activity. In terrorist financing, the source may be legitimate (donations, charities, personal savings) but the purpose of the funds is criminal.

Question 4. A company that has no genuine business operations, no employees, and exists solely to hold assets or conduct financial transactions on behalf of others is best described as:

A) A correspondent bank

B) A shell company

C) A special purpose vehicle

D) A nominee company

Answer: B — A shell company

Shell companies have no real business operations. They are commonly used in layering to obscure the beneficial ownership of assets.

Question 5. Trade-based money laundering (TBML) primarily exploits:

A) Cryptocurrency exchanges

B) Wire transfer systems

C) International trade transactions

D) Real estate title transfers

Answer: C — International trade transactions

TBML uses the movement of goods and services across borders — through over- and under-invoicing, multiple invoicing, falsely described goods, and falsely described quantities — to move value between countries.

Question 6. Which activity is most characteristic of the layering stage?

A) Depositing large amounts of cash into multiple bank accounts

B) Purchasing real estate in a nominee’s name

C) Moving funds through a series of offshore accounts across jurisdictions

D) Using criminal proceeds to purchase a business

Answer: C — Moving funds through a series of offshore accounts across jurisdictions

Layering creates distance between funds and their criminal origin through complex financial transactions. Multiple offshore transfers are a core layering technique.

Question 7. Which of the following best describes smurfing?

A) Using offshore banks to hide the origin of funds

B) Breaking large cash deposits into smaller amounts to avoid reporting thresholds

C) Using trade invoices to inflate the value of exported goods

D) Establishing nominee accounts in foreign jurisdictions

Answer: B — Breaking large cash deposits into smaller amounts to avoid reporting thresholds

Smurfing (also called structuring) involves splitting large cash deposits into smaller amounts specifically to avoid triggering Currency Transaction Reports (CTRs) or similar thresholds. It is illegal under US law and in many other jurisdictions.

Question 8. Hawala is best described as:

A) A formal banking transfer system used in the Middle East

B) An informal value transfer system that operates outside conventional banking

C) A regulated cryptocurrency exchange

D) A correspondent banking arrangement for remittances

Answer: B — An informal value transfer system that operates outside conventional banking

Hawala operates on trust and a network of brokers (hawaladars). Value is transferred without physical movement of money, leaving minimal paper trail.

Question 9. Which financial crime involves misrepresenting the source of funds raised through legitimate investment activities?

A) Bribery and corruption

B) Insider trading

C) Ponzi scheme

D) Securities fraud linked to money laundering

Answer: D — Securities fraud linked to money laundering

Securities fraud can generate criminal proceeds that then need to be laundered. Proceeds from pump-and-dump schemes, insider trading, or market manipulation are commonly laundered through the financial system.

Question 10. Which of the following is a primary red flag for real estate money laundering?

A) A buyer requesting a long escrow period

B) An all-cash purchase with no mortgage, where the buyer shows limited documented income

C) A property being purchased through a licensed real estate agent

D) A buyer from a foreign country using a local attorney

Answer: B — An all-cash purchase with no mortgage, where the buyer shows limited documented income

All-cash purchases by buyers whose documented income does not support the transaction value is a classic real estate laundering red flag.

Question 11. The Financial Action Task Force (FATF) Recommendations are:

A) Legally binding international treaties

B) Voluntary guidelines with no enforcement mechanism

C) The international standard for AML/CFT regimes

D) Regulations issued by the IMF

Answer: C — The international standard for AML/CFT regimes

FATF Recommendations are the internationally recognized standard for combating money laundering and terrorist financing. While not legally binding, countries that fail mutual evaluations face significant reputational and economic consequences.

Question 12. A politically exposed person (PEP) is best defined as:

A) Any foreign national who maintains an account with a US bank

B) An individual who has been convicted of a financial crime

C) An individual entrusted with a prominent public function, domestically or internationally

D) A senior executive at a publicly listed company

Answer: C — An individual entrusted with a prominent public function, domestically or internationally

PEPs include heads of state, senior government officials, senior politicians, senior judicial officials, and senior military officers. Their positions create elevated exposure to bribery and corruption.

Question 13. Which of the following is NOT a common typology used to launder proceeds from drug trafficking?

A) Currency exchange businesses

B) Cash-intensive retail businesses

C) Reverse mortgage transactions

D) Bulk cash smuggling

Answer: C — Reverse mortgage transactions

Reverse mortgages are not a common drug trafficking typology. Cash-intensive businesses, currency exchange, and bulk cash smuggling are well-documented methods.

Domain 2 CAMS Exam Questions: Compliance Standards for AML/CFT (14–25)

Question 14. Under the FATF 40 Recommendations, what is the foundational approach to designing an AML/CFT program?

A) A rules-based approach

B) A risk-based approach

C) A compliance-first approach

D) A deterrence-based approach

Answer: B — A risk-based approach

The risk-based approach (RBA) is the cornerstone of FATF’s framework. Institutions should allocate resources proportionate to the money laundering and terrorist financing risks they face.

Question 15. Under the USA PATRIOT Act, which financial institutions are required to establish AML programs?

A) Only federally insured depository institutions

B) Only broker-dealers and investment advisers

C) A broad range of financial institutions, including banks, broker-dealers, and money service businesses

D) Only institutions with over $1 billion in assets

Answer: C — A broad range of financial institutions

The USA PATRIOT Act extended AML program requirements broadly across the financial sector — including banks, credit unions, broker-dealers, insurance companies, and money service businesses.

Question 16. The four pillars of a US Bank Secrecy Act (BSA) compliance program include all of the following EXCEPT:

A) Designation of a compliance officer

B) Ongoing employee training

C) Independent testing

D) Real-time transaction monitoring alerts

Answer: D — Real-time transaction monitoring alerts

The four BSA pillars are: (1) internal policies, procedures, and controls; (2) a designated BSA/AML compliance officer; (3) ongoing employee training; and (4) independent testing. Real-time transaction monitoring is a best practice but not one of the four statutory pillars.

Question 17. When must a US Suspicious Activity Report (SAR) be filed?

A) Within 10 days of the suspicious activity being identified

B) Within 30 days of the initial detection of the suspicious activity

C) Within 60 days of detecting facts that may constitute a basis for filing

D) Within 90 days if additional investigation is required

Answer: B — Within 30 days of the initial detection of the suspicious activity

Under FinCEN rules, SARs must be filed within 30 calendar days of the date of initial detection of suspicious activity. An extension to 60 days is allowed if no suspect can be identified.

Question 18. The EU’s Anti-Money Laundering Directives apply to which of the following?

A) Central banks only

B) Financial institutions and certain designated non-financial businesses and professions (DNFBPs)

C) EU member state governments

D) Financial institutions with EU passport status only

Answer: B — Financial institutions and certain designated non-financial businesses and professions (DNFBPs)

EU AML Directives cover banks, financial institutions, and DNFBPs including lawyers, accountants, notaries, real estate agents, and high-value goods dealers.

Question 19. Which of the following correctly describes a Currency Transaction Report (CTR) filing requirement in the United States?

A) Required for any cash transaction over $5,000

B) Required for any cash transaction over $10,000

C) Required for any electronic transfer over $10,000

D) Required only when cash is withdrawn from a bank account

Answer: B — Required for any cash transaction over $10,000

US financial institutions must file a CTR for cash transactions exceeding $10,000. This is a mandatory reporting requirement, not based on suspicion.

Question 20. Which FATF Recommendation specifically addresses the need for countries to criminalize money laundering?

A) Recommendation 3

B) Recommendation 10

C) Recommendation 16

D) Recommendation 26

Answer: A — Recommendation 3

FATF Recommendation 3 requires countries to criminalize money laundering consistent with the Vienna Convention and Palermo Convention, applying it to all serious offences.

Question 21. A mutual evaluation is best described as:

A) A self-assessment completed by a FATF member country

B) A peer review conducted by FATF to assess a country’s AML/CFT compliance

C) An IMF review of a country’s financial sector

D) A Wolfsberg Group assessment of correspondent banking standards

Answer: B — A peer review conducted by FATF to assess a country’s AML/CFT compliance

FATF conducts mutual evaluations of member and associate member countries to assess how effectively they implement the FATF Recommendations.

Question 22. Which organization maintains the list of high-risk and other monitored jurisdictions subject to FATF increased monitoring?

A) INTERPOL

B) The World Bank

C) FATF

D) The Egmont Group

Answer: C — FATF

FATF maintains the “grey list” (jurisdictions under increased monitoring) and “black list” (high-risk jurisdictions subject to enhanced due diligence calls). Countries on these lists face heightened scrutiny from the international financial community.

Question 23. The Egmont Group is best described as:

A) An international organization that sets AML regulations for banks

B) A network of Financial Intelligence Units (FIUs) that facilitates information sharing

C) A FATF-style regional body for Southeast Asia

D) The primary body responsible for issuing correspondent banking guidance

Answer: B — A network of Financial Intelligence Units (FIUs) that facilitates information sharing

The Egmont Group connects FIUs globally to facilitate the exchange of financial intelligence and improve cooperation in combating money laundering and terrorist financing.

Question 24. Which Wolfsberg Principle specifically addresses correspondent banking?

A) The Wolfsberg Anti-Bribery and Corruption Principles

B) The Wolfsberg Correspondent Banking Principles

C) The Wolfsberg Trade Finance Principles

D) The Wolfsberg Private Banking Principles

Answer: B — The Wolfsberg Correspondent Banking Principles

The Wolfsberg Group issued specific principles for correspondent banking that address due diligence, risk assessments, and ongoing monitoring for correspondent relationships.

Question 25. Under the EU’s 6th Anti-Money Laundering Directive (6AMLD), which of the following is an important change from prior directives?

A) Expanding AML obligations to cryptocurrency service providers only

B) Expanding the list of predicate offences and introducing criminal liability for legal persons

C) Removing requirements for beneficial ownership registers

D) Requiring all EU member states to adopt a rules-based approach

Answer: B — Expanding the list of predicate offences and introducing criminal liability for legal persons

6AMLD harmonized and extended the list of predicate offences (to 22 crimes) and explicitly introduced criminal liability for legal persons (companies), not just individuals.

Domain 3 CAMS Exam Questions: AML Compliance Program (26–38)

Question 26. The first step in designing an effective AML compliance program is:

A) Hiring a Chief Compliance Officer

B) Conducting an enterprise-wide AML risk assessment

C) Implementing transaction monitoring software

D) Filing a SAR with the relevant FIU

Answer: B — Conducting an enterprise-wide AML risk assessment

An AML program must be risk-based. The risk assessment identifies the institution’s exposure to money laundering and terrorist financing risk — by customer type, product, geography, and delivery channel — and drives all subsequent program design decisions.

Question 27. Which of the following describes Enhanced Due Diligence (EDD)?

A) A simplified customer onboarding process for low-risk accounts

B) Additional scrutiny applied to higher-risk customers, products, or transactions

C) A one-time verification of a customer’s identity documents

D) A mandatory audit of all correspondent banking relationships

Answer: B — Additional scrutiny applied to higher-risk customers, products, or transactions

EDD goes beyond standard CDD by gathering additional information about the customer, their source of funds, source of wealth, and business relationships. It is applied when risk factors are elevated.

Question 28. Which element is NOT part of standard Customer Due Diligence (CDD)?

A) Verifying the customer’s identity

B) Understanding the nature and purpose of the customer relationship

C) Ongoing monitoring of the customer relationship

D) Filing a SAR on all new customers

Answer: D — Filing a SAR on all new customers

CDD involves identity verification, understanding the customer and their activity, and ongoing monitoring. Filing SARs is a separate obligation triggered by suspicious activity — not part of routine CDD for all customers.

Question 29. Under the US FinCEN Beneficial Ownership Rule (as amended by the Corporate Transparency Act), who must be identified as a beneficial owner?

A) Any individual who owns or controls 10% or more of an entity

B) Any individual who owns or controls 25% or more of an entity, plus one “control” person

C) The registered agent of the entity

D) All directors and officers of the entity, regardless of ownership percentage

Answer: B — Any individual who owns 25% or more, plus one control person

The FinCEN Beneficial Ownership Rule requires identification of individuals owning or controlling 25% or more of a legal entity customer, plus one control person who manages the entity.

Question 30. A transaction monitoring system flags a transaction because it matches a predetermined pattern. This type of monitoring is called:

A) Behavioral analytics monitoring

B) Rules-based monitoring

C) Peer-group benchmarking

D) Machine learning anomaly detection

Answer: B — Rules-based monitoring

Rules-based monitoring uses predefined scenarios and thresholds. When a transaction meets the rule criteria, an alert is generated for review. It differs from ML-based approaches that detect anomalies against dynamic baselines.

Question 31. Which of the following best defines “tipping off”?

A) Notifying a regulator about a suspicious transaction before filing a SAR

B) Disclosing to a customer or subject that they are under AML investigation or that a SAR has been filed

C) Sharing SAR information with a correspondent bank for transaction monitoring purposes

D) Filing a SAR based on incomplete information

Answer: B — Disclosing to a customer or subject that a SAR has been filed

Tipping off is illegal in most jurisdictions. Once a SAR or STR is filed, the financial institution must not disclose this to the subject of the report or any person connected with the subject.

Question 32. Which of the following best describes the purpose of an AML training program?

A) To ensure all employees can identify and escalate potential money laundering activity

B) To document the institution’s compliance with all regulatory requirements

C) To train employees on how to complete CTR forms

D) To satisfy the requirement for independent testing

Answer: A — To ensure all employees can identify and escalate potential money laundering activity

Training must equip employees to recognize red flags and escalate concerns. It is a foundational pillar of an effective AML program, covering relevant roles, risks specific to the business, and how to report suspicious activity internally.

Question 33. Independent testing of an AML program should be conducted by:

A) The AML compliance officer

B) The business line that owns the AML processes being tested

C) An independent function within the institution or by an external auditor

D) The institution’s primary regulator

Answer: C — An independent function within the institution or by an external auditor

Independence is critical. Testing conducted by the people responsible for the program being tested lacks objectivity. The testing function must report findings to senior management or the board.

Question 34. Source of Funds (SOF) verification refers to:

A) Verifying that the institution’s funding sources are legitimate

B) Identifying and verifying the specific activity that generated the funds in a particular transaction

C) Tracing the origin of the institution’s capital

D) Confirming that a customer’s assets are held in regulated financial institutions

Answer: B — Identifying and verifying the activity that generated the funds in a transaction

SOF verification confirms how the specific funds in a transaction were generated — for example, through a salary, property sale, inheritance, or business income. It is particularly important in EDD scenarios.

Question 35. Which of the following is most likely to be considered a high-risk business relationship requiring enhanced due diligence?

A) A domestic retail bank account for a salaried employee

B) A wealth management account for a foreign PEP with complex offshore holdings

C) A savings account for a retired individual with no international activity

D) A small business checking account with predictable local transaction patterns

Answer: B — A wealth management account for a foreign PEP with complex offshore holdings

Foreign PEPs with complex offshore structures present elevated corruption and concealment risk. This profile requires EDD including verification of source of wealth, source of funds, and enhanced ongoing monitoring.

Question 36. Which of the following best describes a Suspicious Activity Report (SAR)?

A) A mandatory report filed after every transaction over $10,000

B) A report filed when a financial institution suspects or has reason to suspect that a transaction involves funds from illicit activity

C) A regulatory form submitted annually to summarize all transactions over $3,000

D) An internal risk assessment document submitted to the board of directors

Answer: B — A report filed when a transaction is suspected to involve illicit funds

A SAR is filed when there is a reasonable basis to believe a transaction involves funds from criminal activity, is designed to evade reporting requirements, or has no lawful purpose and the institution cannot identify a legitimate explanation.

Question 37. An institution’s AML risk assessment should be updated:

A) Only when the regulator requests it

B) Annually and whenever there are significant changes to the business, products, or customer base

C) Every five years as part of the enterprise risk management cycle

D) Monthly in line with transaction monitoring tuning cycles

Answer: B — Annually and whenever significant changes occur

AML risk assessments are living documents. They should be updated regularly (at minimum annually) and any time the institution adds new products, enters new markets, onboards high-risk customer segments, or undergoes significant structural changes.

Question 38. Which customer type is most commonly associated with payable-through accounts (PTAs)?

A) Domestic retail customers

B) Foreign banks using correspondent banking arrangements

C) High-net-worth domestic investors

D) Small business owners with seasonal revenue patterns

Answer: B — Foreign banks using correspondent banking arrangements

PTAs allow customers of a foreign bank to directly access the correspondent bank’s services, creating layers of customers the correspondent may not directly know. This elevates ML/TF risk significantly.

Domain 4 CAMS Exam Questions: Working with Law Enforcement (39–50)

Tools and Technologies to Fight Financial Crimes

Question 39. A financial institution uses transaction monitoring software primarily to:

A) Automatically confirm that every unusual transaction is money laundering
B) Identify transactions or patterns that may require further investigation
C) Replace the need for customer due diligence
D) Prevent customers from conducting international transactions

Answer: B — Identify transactions or patterns that may require further investigation

Transaction monitoring systems analyze customer activity against predefined rules, thresholds, scenarios, and behavioral patterns. An alert does not prove that money laundering has occurred; it indicates that the activity should be reviewed and investigated.

Question 40. What is the primary purpose of sanctions-screening technology?

A) To calculate a customer’s overall creditworthiness
B) To compare customers and transactions against sanctions and restricted-party lists
C) To determine whether a customer should receive a loan
D) To automatically file suspicious activity reports

Answer: B — To compare customers and transactions against sanctions and restricted-party lists

Sanctions-screening systems compare names, payment details, counterparties, vessels, addresses, and other identifiers against applicable sanctions lists. Potential matches must normally be reviewed to determine whether they are true matches or false positives.

Question 41. A bank receives a large number of false-positive alerts from its name-screening system. What is the most appropriate response?

A) Disable the screening system until the lists are updated
B) Automatically approve all alerts involving existing customers
C) Calibrate the matching logic while ensuring that genuine matches are not missed
D) Increase the reporting threshold for suspicious activity reports

Answer: C — Calibrate the matching logic while ensuring that genuine matches are not missed

Screening systems should be tuned and tested to balance effectiveness and efficiency. Calibration may include adjusting matching thresholds, transliteration rules, data fields, and fuzzy-matching logic without weakening controls or increasing the risk of missed sanctions matches.

Question 42. Which technology is most useful for identifying hidden relationships among customers, accounts, counterparties, devices, and transactions?

A) Network or link analysis
B) Document storage software
C) Password-management software
D) Accounting reconciliation software

Answer: A — Network or link analysis

Network and link-analysis tools identify connections among people, entities, accounts, devices, addresses, and transactions. These tools can reveal previously unnoticed relationships, transaction chains, organized networks, and common control structures.

Question 43. What is an important advantage of using machine learning in financial-crime monitoring?

A) It eliminates the need for human investigation
B) It guarantees that every suspicious transaction will be detected
C) It can identify complex patterns that may not be captured by fixed rules
D) It allows institutions to stop maintaining customer information

Answer: C — It can identify complex patterns that may not be captured by fixed rules

Machine-learning models can analyze large volumes of data and identify unusual behaviors, relationships, and patterns that traditional rule-based systems may overlook. However, they require appropriate governance, validation, monitoring, and human oversight.

Question 44. A financial institution implements robotic process automation in its AML operations. Which activity is most suitable for automation?

A) Making the final decision to file every suspicious activity report
B) Replacing the board’s responsibility for AML oversight
C) Collecting information from multiple systems and populating investigation files
D) Determining whether a customer has committed a criminal offense

Answer: C — Collecting information from multiple systems and populating investigation files

Robotic process automation is well suited to repetitive, rule-based tasks such as gathering customer information, retrieving transaction records, updating case files, and performing routine data checks. Judgment-based decisions should remain subject to qualified human review.

Question 45. What is the primary purpose of a financial-crime case management system?

A) To replace all transaction-monitoring rules
B) To organize alerts, investigations, evidence, decisions, and audit trails
C) To approve customer transactions automatically
D) To determine whether criminal charges should be filed

Answer: B — To organize alerts, investigations, evidence, decisions, and audit trails

A case management system helps investigators document and manage alerts, customer information, transaction analysis, supporting evidence, investigative steps, escalation decisions, and regulatory filings. It also creates a traceable audit trail for quality assurance, internal audit, and regulatory review.

Question 46. A bank uses fuzzy matching in its sanctions-screening system. What is the main purpose of this technique?

A) To identify possible matches despite spelling variations or minor differences
B) To remove all false-positive alerts automatically
C) To screen only exact legal names
D) To calculate the financial value of a sanctions violation

Answer: A — To identify possible matches despite spelling variations or minor differences

Fuzzy matching allows the system to identify potential matches where names differ because of misspellings, abbreviations, transliteration, reversed name order, or other variations. Potential matches still require review to determine whether they are true or false matches.

Question 47. Why is data quality critical to the effectiveness of financial-crime technology?

A) Poor-quality data can cause missed risks and unnecessary alerts
B) High-quality data eliminates the need for system validation
C) Data quality matters only when filing regulatory reports
D) Accurate data allows institutions to avoid customer due diligence

Answer: A — Poor-quality data can cause missed risks and unnecessary alerts

Incomplete, inaccurate, inconsistent, or outdated data can weaken screening and monitoring systems. It may prevent the identification of suspicious relationships or create excessive false positives, making it essential to maintain strong data governance and remediation processes.

Question 48. Which control is most important when an institution uses artificial intelligence in AML investigations?

A) Allowing the model to operate without human review
B) Keeping the model logic confidential from internal oversight functions
C) Establishing governance, validation, explainability, and ongoing monitoring
D) Using the model only for high-value customers

Answer: C — Establishing governance, validation, explainability, and ongoing monitoring

Artificial intelligence models should be governed through documented ownership, testing, validation, performance monitoring, change controls, and human oversight. Institutions should also understand and explain how model outputs support investigative decisions.

Question 49. A transaction-monitoring system generates an alert because a customer’s activity is significantly different from the customer’s expected profile. This is an example of:

A) Behavioral monitoring
B) Credit scoring
C) Sanctions delisting
D) Regulatory reporting

Answer: A — Behavioral monitoring

Behavioral monitoring compares current customer activity with expected or historical behavior. Significant deviations, such as sudden changes in transaction size, frequency, geography, or counterparties, may indicate activity that requires further review.

Question 50. What is the most appropriate use of adverse media screening in a financial institution?

A) To confirm that every negative article proves criminal conduct
B) To identify potentially relevant negative information for risk assessment and investigation
C) To replace sanctions and PEP screening
D) To reject all customers mentioned in the media

Answer: B — To identify potentially relevant negative information for risk assessment and investigation

Adverse media screening can identify credible negative information related to financial crime, corruption, fraud, sanctions evasion, or other risk factors. The information should be assessed for reliability, relevance, recency, and connection to the customer before any decision is made.

Scoring Your CAMS Exam Questions Results

Use this table to evaluate your performance on these CAMS exam questions:

What to Do With Your CAMS Exam Questions Results

If you scored below 70% on these CAMS exam questions, note which domains account for most of your misses. The CAMS exam is balanced across all four domains — a weakness in Domain 2 (Compliance Standards) or Domain 3 (AML Program) will cost you disproportionately because they carry substantial weight.

For each question you answered incorrectly:

• Re-read the explanation
• Trace the concept back to the relevant FATF Recommendation or regulatory requirement
• Test yourself again after 48 hours to confirm retention

Next Steps for Your CAMS Exam Preparation

These 50 CAMS exam questions are one part of a complete preparation plan. A strong CAMS candidate also needs:

• Thorough study of the ACAMS study materials — the exam draws directly from the official curriculum
• Domain-by-domain review — spend more time on lower-scoring domains
• Exam strategy practice — timing and question elimination matter
• Understanding over memorization — regulators update guidance; conceptual understanding lasts longer

Our CAMS Exam Guide 2026 covers the complete exam structure, domain breakdown, study timeline, and what to expect on exam day. Before you register, review the CAMS certification cost breakdown so you know exactly what fees to budget for.

If you want structured preparation with expert guidance, explore the CAMS Prep courses designed around the ACAMS exam framework.

CAMS Prep is an independent training platform. We are not affiliated with ACAMS or any other official certification body. All questions in this article are original practice questions created by CAMS Prep for educational purposes.