Certified Anti Money Laundering Specialist Cams

Instructions:

• Answer 50 questions in 15 minutes.
• If you are not ready to take this test, you can study here.
• Match each statement with the correct term.
• Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
A professional responsible for the securities portfolio of an individual or institutional investor. In return for a fee - the manager has the responsibility of choosing and managing assets.


2. 'Closed-end Mutual Fund' (Or Comany)

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


3. FATF Recommendation 36
Take expeditious action to requests by foreign countries to identify - freeze - seize and confiscate property that is proceeds of money laundering or a predicate crime.
www.artloss.com
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
Provide mutual legal assistance.


4. FATF Recommendation 23
2% - 5% ($590B - $1.5T)
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Financial institutions should have adequate supervision and regulation. Ensure no criminal element in position on control. Money transfer/exchangers should be registered and subjected to monitoring.


5. What was the target of UN Security Council Resolution 1267?
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Intergovernmental Action Group against Money Laundering in Africa
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.


6. FATF Recommendation 35
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Take immediate steps to ratify and implement the UN instruments.
Refers to dishonest broker-dealers who set up a group of high pressure salespeople who use banks of telephones to make cold calls to as many potential investors as possible.
They pool investors' money and invest those funds in financial instruments in an effort to turn a profit. They typically issue securities in 'private offerings' that are usually not required to be registered with sa securities or financial regulator.


7. What is one of the Financial Service Authority's (UK) tasks?
To reduce financial crime - including money laundering and terrorit financing.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
Freeze and confiscate terrorist assets.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.


8. Moneyval
Terrorism and Terrorist Financing
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Charles Ponzi - an Italian immigrant to the US who spent 10 years in jail for a scheme that defrauded 40 -000 people out of $15 million.


9. Agent (Insurance Industry)
It was the first law in any country to make money laundering a crime.
Firm or person that solicits and accepts commodity futures orders from customers but does not accept funds. Two types of IB_C's: Guaranteed and Independent.
Refers to where the agent is acting under a contractual arrangement with the insurer to carry out its CDD functions (i.e. the agent is regarded as synonymous with the insurer) [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 0
Urge investors to buy 'house stocks' - stocks that the firm buys and sells as a market maker or has in its inventory. Oftentimes - they are running a 'pump-and-dumo' scheme.


10. Basel's 'CDD for Banks' states that the decision to open an account for a PEP should be taken at...
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Court order directing a law enforcement officer to seize and detain a particular person and require them to provide an answer to a compliant or otherqise appear in court.
a Sr Management level
Direct money of Criminal A is sent to foreign bank account of company B. Investment company C is formed as A's country. A is appointed as director of C. C borrows money from B and buys building which is rented to 3rd parties. with rent - C pays off B


11. FATF Recommendation 8
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Market participants intentionally restrict a security's liquidity. May lead to increased profits when the security's price rises due to the lack of 'supply'.
It one wants to open a bank account overseas - but do it through the mail - the bank may need to be assured that the copy of the passport is correct. The Apostille mark can assure this.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


12. Reverse Flip

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


13. Credit Card Associations
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Securities with very low marker price - volume and/or liquidity that are traded on a securities exchange or on the OTC markets. They tend to be more volatile than those on the major exchanges.
If provided for money laundering to be an internationally extraditable offense.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.


14. The 'Art Loss Register'

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


15. The Vienns Convention
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
no regulatory power or function
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Money Laundering and Tax Evasion


16. Open System Stored Value Card
To provide a forum for FIU's (Financial Intelligence Unit) to improve support to their respective national AML progrmans and development protocols for the sharing of information.
Money Laundering and Tax Evasion
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
tipped off that they are being investigated.


17. Commodity Pool Operator
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Charles Ponzi - an Italian immigrant to the US who spent 10 years in jail for a scheme that defrauded 40 -000 people out of $15 million.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.


18. FATF Recommendation 33
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Firm or person that solicits and accepts commodity futures orders from customers but does not accept funds. Two types of IB_C's: Guaranteed and Independent.
a chain-referral scheme.


19. Examples of White-collar crime
Person who - for compensation - provides advice on securities and investments and manages client assets.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
Account established by a domestic banking institution to receive deposits from - make payments on behalf of - or handle other financial transactions for a foreign financial institution - usually in the foreign financial institutions's cureency.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.


20. What does an Extradition Treaty specify?
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
The FIU of the UK


21. Who appear to be predominant users of hawalas and other alternative remittance systems?
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Financial Action Task Force
Expatriates sending money back to their home country or by other individuals sending money abroad.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.


22. FATF Recommendation 20
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Take expeditious action to requests by foreign countries to identify - freeze - seize and confiscate property that is proceeds of money laundering or a predicate crime.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.


23. FATF Recommendation 40
The FIU of Russia
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Type of foreign bank that is incorporated in the host country but is considered to be owned by a foreign parent bank. It only needs to operarted under the host country's regulations.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.


24. A pyramid scheme is also called...
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
a chain-referral scheme.
Firm or person that solicits and accepts commodity futures orders from customers but does not accept funds. Two types of IB_C's: Guaranteed and Independent.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.


25. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
A deliberate attempt to interfere with the free and fair operation of the market and create artificial - false or misleading appearances with respect to the price of - or market for a security - commodity or currency.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Stored Value Cards - Mobile Payments - Internet Payments.


26. Structuring is a common technique in jurisdictions that...
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Review customer files and conduct random sampling of accounts.
A bank which uses the services of another bank - such as check clearing - wire transfers - etc. The bank providing the service is the 'Correspondent Bank'
have in place compulsory currency reporting requirements.


27. What do boiler room salespeople typically do?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


28. Bust-out
Expanding/Systemising the exchange of financial intelligence - improving expertise/capabilities of their personnel - fostering better communication by applying new technologies and sharing financial crimes investigations information.
Report suspicious transactions linked to terrorism.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.


29. Boiler Room
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
A fund setup by an investment trust in which the number of shares can fluctuate as investors' move in and out the fund. Share prices moves in direct proportion of the net asset value of the underlying investments (no premium or discount).
Refers to dishonest broker-dealers who set up a group of high pressure salespeople who use banks of telephones to make cold calls to as many potential investors as possible.


30. 'Kiting' via credit card
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Money Laundering and Tax Evasion
Solicits potential customers and issues the credit cards.


31. FATF Recommendation 31
A professional responsible for the securities portfolio of an individual or institutional investor. In return for a fee - the manager has the responsibility of choosing and managing assets.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.


32. Characteristics of an 'Open System Stored Value Card'
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Often co-branded by financial institution; may have VISA or MasterCard logos; can be reloadable; usually can access ATMs for withdrawls globally; non-customers can buy them.
A co-operative property seller agrees to sell home at a well-below market reported price - then accepts the difference 'under the table'. When launderer later sells house - he recognizes 'gain' and all funds appear legitimate as it sold at market.
have in place compulsory currency reporting requirements.


33. Apostille

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


34. FATF Recommendation 3
The process of agreeing to purchase a new issue of securities from an issuer and distribute it to investors. The underwriter makes a profit between the price paid to the issuer and the public offering price.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Direct or indirect advisor on buying and selling futures or commodity options.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.


35. (Stock) Warrants
A security that offers the owner the right to subscribe for ordinary shares of a company at a fixed date - usually at a fixed price. Equivalent to stock options.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
The US State Dept issues the report annually.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.


36. Penny Stocks
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
Penny Stocks
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
Securities with very low marker price - volume and/or liquidity that are traded on a securities exchange or on the OTC markets. They tend to be more volatile than those on the major exchanges.


37. (Credit card) Acquiring Bank
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Processes transactions for merchants who accept credit cards.
Urge investors to buy 'house stocks' - stocks that the firm buys and sells as a market maker or has in its inventory. Oftentimes - they are running a 'pump-and-dumo' scheme.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


38. Foriegn Shell Banks are vehicles for ______ & ______?
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Money Laundering and Tax Evasion
Countries should not allow shell banks. Financial institutions should not have correspondent banking relationships with shell banks or banks that allow shell banks to do business through their accounts.


39. What is a 'Trust'?
It conducts investigations in support of a government's confiscation or seizure efforts.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
The right - but not the obligation - to buy or sell a set amount of something - such as a share or commodity - at a set price after a set expiration date.
A contractual arrangement whereby the trustee manages the property for the benefit of the beneficiary in accordance with the contractual terms set by the grantor.


40. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
Refers to dishonest broker-dealers who set up a group of high pressure salespeople who use banks of telephones to make cold calls to as many potential investors as possible.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Strengthen customer identification measures in iternational and domestic wire transfers.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.


41. FATF Recommendation 22

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


42. Derivatives
Confiscation
Futures contracts - forwards - swaps or options.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.


43. Respondent Bank

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


44. FATF Recommendation 15
A professional responsible for the securities portfolio of an individual or institutional investor. In return for a fee - the manager has the responsibility of choosing and managing assets.
Placement - Layering - Integration.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
They pool investors' money and invest those funds in financial instruments in an effort to turn a profit. They typically issue securities in 'private offerings' that are usually not required to be registered with sa securities or financial regulator.


45. How are 'Predicate Crimes' sometimes identified?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


46. Underwriting
Processes transactions for merchants who accept credit cards.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
The process of agreeing to purchase a new issue of securities from an issuer and distribute it to investors. The underwriter makes a profit between the price paid to the issuer and the public offering price.


47. What is meant by 'Know Your Customer's customer'?
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).


48. OTC markets Over-The-Counter
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Refers to dishonest broker-dealers who set up a group of high pressure salespeople who use banks of telephones to make cold calls to as many potential investors as possible.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
A market is which securities are bought and sold outside of establisehd securities markets.


49. Convertible Bond
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Corporate bond that includes an option for the holder to convert it into other securities after a specified period at the discretion of the bondholder.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.


50. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Futures contracts - forwards - swaps or options.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
The FIU of Russia
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.