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. What is a Financial Intelligence Unit?
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
A degree of satisfaction not necessarily amounting to belief but extending beyond specualtionas to whether an event has occured or not. Though suspicion requires a lesser factual basis than a belief - it must be built upon some foundation.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.


2. FATF Recommendation 5
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
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.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.


3. FATF Recommendation 18
Funds transfers - Shell Corporations - Contractual Transactions.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
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.
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.


4. What is the Federal Service for Financial Monitoring?
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
The FIU of Russia


5. Mutual Fund
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Countries should recognize money laundering as an extraditable offense.


6. What is the FCPA primarily known for?
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Passed in 1977 - the US law is primarily known for its anti-bribery provisions (it also applies to foreign companies with stocks covered by the Securities and Exchange Act of 1934).
An electronic quotation system that displays quotes of many securities traded over the counter.


7. What do boiler room salespeople typically do?

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8. Why do convertible bonds oftern have lower interest rates than non-convertible bonds?
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
They can accrue value as the price of the underlying stock rises.
Terrorism and Terrorist Financing


9. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
Impose AML requirements on alternative remittance systems.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Penny Stocks


10. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
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.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.


11. FATF Recommendation 25
Represents a profession and is made up of member professionals; has a role in regulating the persons who are qualified to enter and who practise the profession; performs cetain supervisory or monitoring type function.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.


12. Cash Log

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13. Under the US Bank Secrecy Act - SAR filings are confidential and the institutions employees cannot ____?

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14. Guaranteed Introducing Broker

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15. How is 'Legal Risk' defined by the 2001 Basel Due Diligence Principles?
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.
The possibility that lawsuits adverse judgements or contracts that turn out to be unenforceable can disrupt or adversely affect the operatinos or condition of a financial siutation.
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.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.


16. Examples of VSP's
Funds transfers - Shell Corporations - Contractual Transactions.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
A Correspondent Banking Client who receives Corresponding Banking services from an institution and itself provides Correspondent Banking services to other financial institutions in the same currency as the account it maintains with the institution.


17. Apostille

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18. Who conducts the Financial Sector Assessment Program (FSAP)?
A market is which securities are bought and sold outside of establisehd securities markets.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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.
A degree of satisfaction not necessarily amounting to belief but extending beyond specualtionas to whether an event has occured or not. Though suspicion requires a lesser factual basis than a belief - it must be built upon some foundation.


19. Transparency International
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.


20. Dematerialization of Securities

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21. Identification data
Reliable - independent source of documents - data or information.
Refers to express trusts or other similar legal arrangements - such as fiducie - treuhand and fideicomiso [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 09]
Issue and cancel securities certificates to reflect chagnes in ownership - act as an intermediary for the issuing company - and hanlde lost - stolen or destroyed certificates.
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.


22. 'Commission Rogatoire' known in English as?
Letters Rogatory
Futures contracts - forwards - swaps or options.
To promote the effective supervision of banks in their jurisdictions; to further international cooperation in the supervision between the Offshore Banking Supervisors - and with Basel committee member nations and other banking supervisors.
Countering the Financing of Terrorism (Counter Terrorist Financing).


23. What does Financial Sector AssessmentProgram (FSAP) do?
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
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
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.


24. FATF Recommendation 39
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Countries should recognize money laundering as an extraditable offense.
foreign correspondent banks


25. FATF Sepcial Recommendation on Terrorist Financing -- SR Eight
Applied by an authority - it is a special seal which certifies that a document is a true copy of an original. However - it does not and cannot speak to the validity of the document's content.
Pouch activity.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.


26. Respondent Bank

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27. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.


28. GIABA
Countering the Financing of Terrorism (Counter Terrorist Financing).
While it is normally known as a Personal Investment Company (PIC) - in some jurisdictions - the international business company or exempt company is also the same.
Intergovernmental Action Group against Money Laundering in Africa
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.


29. FATF Recommendation 26
To reduce financial crime - including money laundering and terrorit financing.
As a financial institution service that is very vulnerable to money laundering.
foreign correspondent banks
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.


30. As considered by UN and OECD - these are jurisdictions that have no or low tax rates - and do not attract real business or foreign investment
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Stored Value Cards - Mobile Payments - Internet Payments.
Pouch activity.
Harmful or Preferrential Tax Regimes.


31. What tend to be the markings of Private Banking transactions?
May involve movement or large sums of money going cross-border and often through multiple casinos - all by a third party (the operator). Sometime operator does not identify funds owners.
Harmful or Preferrential Tax Regimes.
Refers to express trusts or other similar legal arrangements - such as fiducie - treuhand and fideicomiso [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 09]
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.


32. Commodity
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
A person who tranfers stolen money (or merchandise) from one country to another - often as a result of online scams. Transfers - can be done electronically - via mail or courier service or in person.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.


33. What was the effect of the 1988 Vienna Convention as it relates to extradtition?
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Transportation/transfer of funds (even clean) to/from the US - if done to promote unlawful activity - or with knowledge that the funds are illicit - or to conceal/disguise the nature - location - source - ownership - etc. of funds - or to avoid feder
To promote the effective supervision of banks in their jurisdictions; to further international cooperation in the supervision between the Offshore Banking Supervisors - and with Basel committee member nations and other banking supervisors.
If provided for money laundering to be an internationally extraditable offense.


34. White-Collar crime

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35. What is one of the cental stragetic tools required for effective action against money laundering?
Terrorism and Terrorist Financing
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Confiscation
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.


36. FATF Recommendation 38
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Strengthen customer identification measures in iternational and domestic wire transfers.
To promote the effective supervision of banks in their jurisdictions; to further international cooperation in the supervision between the Offshore Banking Supervisors - and with Basel committee member nations and other banking 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.


37. FATF Recommendation 6
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.
People who help move the billions of dollars drug traffickers earn around the world.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
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.


38. FATF Recommendation 28
Harmful or Preferrential Tax Regimes.
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.
Competent authorities should have powers of subpoena - search and seizure.
EurAsian Group


39. MENAFATF
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Middle East and North Africa Financial Action Task Force
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.


40. FATF Recommendation 22

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41. A 'panzi' scheme is named for whom?
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
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.
Passed in 1977 - the US law is primarily known for its anti-bribery provisions (it also applies to foreign companies with stocks covered by the Securities and Exchange Act of 1934).
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.


42. What is the goal of the Egmont group?

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43. Examples of White-collar crime
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.


44. Options/Options Contract
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
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.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].


45. What is one of the Financial Service Authority's (UK) tasks?
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
A market is which securities are bought and sold outside of establisehd securities markets.
Their financial institution may - wittingly or unwittingly - handle the proceeds of this crime while believing it is serving a legitimate client with major account balances.
To reduce financial crime - including money laundering and terrorit financing.


46. Who appear to be predominant users of hawalas and other alternative remittance systems?
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.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
that appear to be linked
Expatriates sending money back to their home country or by other individuals sending money abroad.


47. A notary can issue a Apostille but it must be in a country that signed The Hague Convention (1961) and it must ___________. If the notary doesn't understand - find another one.

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48. What is the goal of FSAP?
Contract issued by an insurance company under which an investor provides the insurer with funds (a lump-sum or series of payments). The insurer then agrees to make periodic payments to the investor starting the immediately or in the future.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.


49. The IMF estimates that laundered funds compromise ______ of the world's GDP
Take immediate steps to ratify and implement the UN instruments.
Combines funds from various members and users them to trade in futures or options contracts.
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.
2% - 5% ($590B - $1.5T)


50. Distribution Channels (Insurance Industry)
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
The means through which the insurance products and services are provided to a customer [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 09]
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)