Certified Transaction Monitoring Associate CTMA Exam Preparation

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Obtaining a globally recognized certification such as the Certified Transaction Monitoring Associate (CTMA) is essential to enhance their knowledge, credibility, and career prospects. The ACAMS CTMA certification is designed to test the competency of individuals in the transaction monitoring field, and the successful completion of the exam demonstrates that they have the necessary skills and expertise to meet the demands of the industry.

So, if you are planning to take the CTMA exam, it’s crucial to have the right study materials to ensure your success. That’s where our recently released ACAMS CTMA Exam questions come in! Our CTMA exam questions are designed to help you test your knowledge and skills, and to prepare you for the actual exam. Our CTMA exam questions are written by experienced professionals in the transaction monitoring field and are updated regularly to reflect changes in the industry and to ensure that they are current and relevant. So why wait? Start preparing today and take your career to new heights!

Page 1 of 4

1. Transaction Monitoring works together with which process?

AML

KYC

SAR

2. Joey walks into a Pharmacy and buys $5000USD worth of prepaid visa cards. Is this a red flag from a Transaction Monitoring point of view

Yes

Maybe

3. During the investigation period of a Transaction Monitoring alert, What are some examples of reliable information that can be used for the investigation?

Older published date

Industry Recognized

Reputable

Biased.

4. With a RFI what information should you ask for?

Full suite of refreshed documents from the KYC file

Specific Information only pertinent to your organization and alert

Previous history of all transactions for the past 3 years

Information from the company regarding the transaction, and the FO of the customer.

5. Are informal value transfer systems a licensed Money Service Business or MSB?

Yes

Depends on the Jurisdiction

6. Tradionally Money Service Businesses are?

Low Risk

Medium/Moderate Risk

High Risk

7. Kate, who is an TM analyst is looking at an Domestic Import/Export company domiciled in Nebraska usually has revenue of around 100k per month. In the first 2 months of the new Financial year that average amount has changed to around 400k per month give or take.

If you were Kate what do you think factor change triggered the alert?

Change of Jurisdiction

Change of Behavior

Tax Evasion

Politically Exposed Persons

8. Is the Control Party different from the Beneficial Owner?

Yes

No.

Depends.

9. Automated alerts are able to present Transaction Monitoring professionals with useful intelligence only when? (SELECT 2)

if every alert gets to be escalated.

The thresholds have not been set.

Systems are correctly maintained.

Optimally tuned on a an ongoing basis.

10. Why is Artificial Intelligence and Machine Learning becoming so big with Transaction Monitoring?

They are inexpensive and cost effective

They can be used interchangeably for different results.

Can eliminate or reduce false positives, thus reducing large workloads automatically.

AI and ML can help find more information related to financial crime and more effective transaction monitoring alerts.

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11. With regards to Open Banking Services, which of the below can be shared within the internal bank channel system?

KYC

Customer Risk Rating

Account Information

Financial Crime Transaction Data

12. An Transaction Monitoring Analyst has found out that a company in which the alert has been generated from is using bearer shares for the formation of the company.

Is this client allowed in the United States?

Yes

Depends on the jurisdiction of the entity

13. Transaction monitoring controls are ____________ monitored, calibrated, and tuned, and new scenarios need to be introduced as the risks associated with the business change.

Rarely

Often

Constantly

Sometimes

14. You as the Transaction Monitoring Analyst have gone though Standard Due Diligence and Enhanced Due Diligence, but you feel that you have not provided enough evidence and proof to onboard the client safely. You feel that you still have concerns, what is the best approach here if you are the analyst.

Approve the client, They have passed SDD and EDD, they are good to go.

Ask a work colleague, perhaps a more senior person about the next step.

Escalate your case to the next stage in the process for someone more qualified to look at it.

Just leave the case their and do nothing, You've done everything you need to do it's not your fault.

15. What are the two product types associated with Transaction Monitoring?

External

Internal

Internal Party

Unrelated Party

16. In terms of Virtual Currency, what does FIAT mean?

Privately Owned Issued Money

Blockchain Issued Money

Average Italian Car

Government Issued Money

17. What is an example of "Tipping off"? here

When it is leaked to a bank that their are subject to a regulatory investigation

When an institution lets regulators know of known acts of Financial Crime missed in their risk based approach and they tip off regulators for a reduced penalty.

When an individual lets their friend know that his bank filed a SAR against her and she is under investigation?

When a person finds out through the police force that they are being investigated for financial crime

18. What are the two customer types associated with Transaction Monitoring?

Corporate

Business

Personal

Individual

19. Where is data for Transaction Monitoring usually sourced from? (SELECT 2)

Public vendor

Payments Channel

Core Banking System

KYC file

20. Some Financial Service products have inherently higher risk, Which below is one of those?

Credit

Private Wealth/Banking

Deposits

Fixed Income.

Page 3 of 4

21. What is the difference between Customer Due Diligence and Enhanced Due Diligence?

CDD Requires more information such as identity verification and PEP screening.

There is no difference or change, they are unrelated.

EDD requires more in-depth information and verification to fulfil a higher risk rating rating

EDD is only for medium/moderate risked customers and just requires further information to confirm.

22. Which of the below can and need to be searched for Sanctions screening (SELECT 3)

Boats

Individuals

Shipping Vessels

Cars

Planes

23. Joanne has just started her new job in Transaction Monitoring. After being trained she has just received her first alert.

What is the first thing she should do?

Assess

Explore

Organize

Report

24. Is there regulatory directive as to closing/exiting a relationship with a client.

Yes - There is regulatory directive as to closing account

No - It remains a policy of the financial institution as to existing a relationship with a customer.

25. Risk Controls must be? (SELECT 3)

Normal

Appropriate

Specific

Regulated

Risk-based

26. 1.John has reached out to the client asking for a Formal I.D in the periodic reassessment after an alert caused the KYC file to be refreshed. The client has email back a copy of their drivers licence, Is this acceptable?

Yes

Depends

27. Which of the following Due Diligence is associated with High Risk?

Customer Due Diligence

Standard Due Diligence

Simplified Due Diligence

Enhanced Due Diligence

28. If the customer is completely outside of the risk appetite of your organization, you might do the following? (SELECT 2)

Recommend rejecting customer.

Get the customer to reduce their risk so they fit into your organizations risk appetite?

Continue to onboard customer

Possibly filing a successfully activity report with law enforcement.

29. With investigating and completing a file it is usually best practice to ensure proper checks are performed, a second person might review the file.

This is called? (SELECT 2)

Quality Assurance

Dual-Controls

Two person check

Four Eyes Check

30. The percentage and types of alerts that become cases will vary based on institution type, client base, jurisdiction, etc? (TRUE OR FALSE)

True

False

Page 4 of 4

31. In the traditional process of generating an alert for transaction monitoring. the process usually foes 1. Data is monitored 2.___________________ 3, Compared against threshold, 4. Alert generated if conditions are met.

AML information extracted

KYC information extracted

Financial Crime information extracted

Customer Banking information extracted.

32. What Risk Cateogories are listed below (SELECT 4)

Customer

Type of Crime

Jurisdiction

Element

Channel

Product

33. An insurance firm needs appropriate policies and procedures to prevent money laundering?

Yes

Depends on the Jursidiction

34. What is a legal reason to use a shell company

Common legal structure

Transfer Assets Easily

Avoid Tax

Fluid and not secure.

35. What are some reasons to terminate the relationship with a customer? (SELECT 2)

Activity looks suspicious

New product has been added

Change in Management

Risk appetite has changed.

36. What is being increasing used with regards to Alerts being generated (SELECT 2)

Data Analysis

Machine Learning

Neural Networks

Artificial Intelligence

37. The Ultimate Beneficial Owner can be a company?

True

False

38. In Transaction Monitoring what are alerts generated incorrectly by the system due to inefficiencies?

False Negatives

True Match

False Match

False Positives

39. What is the purpose of KYC?

The understand what customers are and how to help sell them more products.

The manage the risk that customers bring to an institution.

To document and provide information to cross sell them more products in the future.

To assign a customer a risk score as every customer is required to have a risk score.

40. In Transaction Monitoring what are some reasons below that shows that over time the number of True Alerts will improve for a Transaction Monitoring system? (SELECT 2)

Transaction Monitoring software companies update their software

Revising Rules

Evaluating Alert Productivity

Improved training for AML Analysts