Acams Certification Exam Questions And Answers Correct

Describe a nostro account. {Ans: Nostro and vostro accounts are mirror correspondent accounts maintained by two banks in different jurisdictions to facilitate transactions in each other's local currency—essentially, clearing accounts that balance foreign currency transactions between the two institutions. For example, Bank X from Brazil might open a U.S.‐dollar account at Bank Y in the U.S., called a "nostro" (literally "our") account; Bank Y might open a mirror account in Brazilian reals with Bank X in Brazil—a "vostro" ("your") account. Financial regulators have expressed concern over the transparency of nostro and vostro account relationships, especially when there are multiple layers of accounts within primary relationships.}According to FATF's Recommendations (2012), what are the designated thresholds for transactions under Recommendations 10, 22, and 23? {Ans: FATF also designated specific thresholds that trigger AML scrutiny. For example, the threshold that financial institutions should monitor for occasional customers is €15,000 [Recommendation 10]; for casinos, including Internet casinos, it is €3,000 [Recommendation 22]; and for dealers in precious metals, when engaged in any cash transaction, it is €15,000 [Recommendation 22‐23].}According to the Basel Committee on Banking Supervision's paper entitled "Customer Due Diligence for Banks," how are sound KYC procedures relevant to the safety