Acams Exam Advanced-CAMS-Audit Topic 2 Question 7 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam

Question #: 7
Topic #: 2

During the ongoing due diligence process the company becomes aware that the customer is holding personal assets for a politically exposed person (PEP). What should the auditor recommend to enhance the control environment for this customer relationship? (Select Three.)

AFile a suspicious activity report as the previous risk rating was not correct.

BDeploy automated monitoring toots to efficiently peruse the customer's KYC information and assure that the customer's KYC risk rating is correct.

CDesignate the account as a PEP-account.

DConduct enhanced due diligence and enhanced ongoing monitoring of the customer relationship.

EReview and document the details of the customer s asset-holding arrangement.

FReview the customer risk profile every two years as with any other customers.
C: Designating the account as a PEP-account triggers additional monitoring and controls as PEPs inherently pose higher risks.
D: Enhanced due diligence (EDD) and ongoing monitoring are essential for PEPs to track their financial activities closely and address any anomalies.
E: Documenting the details of the asset-holding arrangement provides clarity on the customer's profile and any associated risks.

Show Suggested Answer

Suggested Answer: C, D, E

by Elena at Jan 26, 2025, 11:33 AM

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Glen

2 months ago

This is a tough one, but I think C, D, and E are the right choices. Can't forget the importance of that PEP designation!

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Esteban

1 months ago

E: Documenting the details of the asset-holding arrangement provides clarity on the customer's profile and any associated risks.

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Mozelle

1 months ago

D: Enhanced due diligence (EDD) and ongoing monitoring are essential for PEPs to track their financial activities closely and address any anomalies.

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Stefania

2 months ago

C: Designating the account as a PEP-account triggers additional monitoring and controls as PEPs inherently pose higher risks.

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Leanna

2 months ago

Designating the account as a PEP-account seems like a good idea too.

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Lamar

2 months ago

Hmm, I'd go with B, D, and E. Automated monitoring tools can really help streamline the process, and the documentation is key.

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Lashon

2 months ago

E: Documenting the details of the asset-holding arrangement is important for understanding the customer's profile and potential risks.

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Harrison

2 months ago

D: Enhanced due diligence and ongoing monitoring are crucial for managing risks associated with politically exposed persons.

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Marylou

2 months ago

B: Deploying automated monitoring tools is a great idea to efficiently review the customer's KYC information.

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Alison

2 months ago

C, D, and E are the way to go. Designating the account as PEP-related is crucial, and enhanced due diligence will help uncover any potential issues.

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Vincenza

1 months ago

E: Documenting the details of the asset-holding arrangement provides clarity on the customer's profile and any associated risks.

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Cherrie

2 months ago

D: Enhanced due diligence (EDD) and ongoing monitoring are essential for PEPs to track their financial activities closely and address any anomalies.

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Billy

2 months ago

C: Designating the account as a PEP-account triggers additional monitoring and controls as PEPs inherently pose higher risks.

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Shanice

3 months ago

Definitely A, B, and D. The auditor needs to take immediate action to address the PEP risk and ensure proper monitoring and controls are in place.

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Darrel

2 months ago

D: Enhanced due diligence (EDD) and ongoing monitoring are essential for PEPs to track their financial activities closely and address any anomalies.

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Clement

2 months ago

C: Designating the account as a PEP-account triggers additional monitoring and controls as PEPs inherently pose higher risks.

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Sueann

3 months ago

I agree, but we should also conduct enhanced due diligence.

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Wenona

3 months ago

I think we should file a suspicious activity report.

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