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. Account Monitoring Order (UK and several other countries)
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.


2. Derivatives
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.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
that appear to be linked
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.


3. Corporate Bank

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4. What are some of the AML dangers of casino junkets?
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
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.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.


5. What normal business practise makes 'Product Division' possible?
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
The US State Dept issues the report annually.


6. What was the target of UN Security Council Resolution 1267?
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.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Financial institutions may rely upon intermediaries to perform certain CDD elements provided the intermediary is supervised and regulated. However - ultimate responsibility remains with the financial institution.
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.


7. FATF Recommendation 28
Competent authorities should have powers of subpoena - search and seizure.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.


8. What does FIU do?
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
disrupt or adversely afftect the business of the bank.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


9. The Vienns Convention
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.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
As a key tool in detecting suspicious or money laundering activity - it is important because correspondent accounts are often used as conduits to launder criminal proceeds in international settings.


10. What is meant by 'Know Your Customer's customer'?
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Money Laundering and Tax Evasion
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
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.


11. OTC markets Over-The-Counter
tipped off that they are being investigated.
A market is which securities are bought and sold outside of establisehd securities markets.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


12. Investment Adviser
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Person who - for compensation - provides advice on securities and investments and manages client assets.
Dealers in precious metals/stones - trust and company services providers - lawyers - notaries and accountants should all be required to report suspicious activity - but legal privilege cannot be violated.


13. (Credit Card) Issuing Bank
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.
Solicits potential customers and issues the credit cards.
The FIU of the UK
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization


14. 'Kiting' via credit card
An introducing broker-dealer with an exclusive written agreement with a Futures Commission Merchant (FCM) that obligates the FCM to assume responsibility for the introducing broker's performance.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
No.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.


15. What do boiler room salespeople typically do?

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16. FATF Recommendation 25
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.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Financial Action Task Force on Money Laundering in South America


17. Counter Party
The opposing part of a transaction or trade.
It was the first law in any country to make money laundering a crime.
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'
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.


18. FATF Recommendations examples of non-financial businesses and professions
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.


19. What is meant by 'Know Your Correspondent Bank'?

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20. FATF's designated transactional threshold for Casinos (including Internet Casinos) is _____.
Combines funds from various members and users them to trade in futures or options contracts.
Strengthen customer identification measures in iternational and domestic wire transfers.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


21. FATF Recommendation 33
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
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.
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.
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.


22. What are the two types of Stored Value Cards?
Open and Closed system
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
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.


23. FATF Recommendation 38
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
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.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
As 'felonies' or 'all offenses in the criminal code'.


24. OCC Office of the Comptroller of the Currency
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Funds transfers - Shell Corporations - Contractual Transactions.


25. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
As a financial institution service that is very vulnerable to money laundering.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.


26. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
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
foreign correspondent banks
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws


27. FATF Recommendation 27
Foreign Corrupt Practices Act
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.


28. Identification data
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Reliable - independent source of documents - data or information.


29. According to FATF - financial transactions above a designated threshold may include situations where the transaction takes place in a single operation or in several operations...
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.
The world's largest private DB of stolen art.
that appear to be linked
Take immediate steps to ratify and implement the UN instruments.


30. The 'Art Loss Register'

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31. Abusive Squeezes

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32. A public perception that a bank is not able to manage its operational risk effectively can...
It conducts investigations in support of a government's confiscation or seizure efforts.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
Absolutely NOT. If the decision is based purely on profile - then you are discriminating. you need to file such reports on the ACTIVITY especially if it differs from the 'normal and expected' as reflected in the customer profile.
disrupt or adversely afftect the business of the bank.


33. Vital Service Providers (VSPs)
People who help move the billions of dollars drug traffickers earn around the world.
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.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.


34. Basel committee's 'Customer Due Diligence for Banks' when verifying a unit's compliance with KYC policies and procedures - the home country supervisors or auditors should do what?
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Review customer files and conduct random sampling of accounts.
Funds transfers - Shell Corporations - Contractual Transactions.


35. Commodity Pool Operator
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
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 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.
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.


36. Arrest Warrant
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
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.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


37. A 'panzi' scheme is named for whom?
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.
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.
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).


38. Scheme
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
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.
As 'felonies' or 'all offenses in the criminal code'.
Quite simply - a plan. While in the US - this term is often associated with a nefarious plan - it should NOT be assumed to be evil - especially as it may appear on the ACAMS exam.


39. Should one ever file a Suspicious Transaction Report (STR/SAR) based on a person's profile?

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40. Examples of VSP's
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
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.
A written statement given under oath before an officer of the court - notary public - or other authorized person. Commonly used as the factual basis for an application for a search - arrest or seizure warrant.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.


41. Who appoints a 'Federal Receiver' (US)?
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
It conducts investigations in support of a government's confiscation or seizure efforts.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
A US Federal Court


42. Options/Options Contract
Provide mutual legal assistance.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing 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.


43. Commodity Pool
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
An account that does not show activity other than the posting of interest or account maintenance fees.
Combines funds from various members and users them to trade in futures or options contracts.
The FIU of the UK


44. What does an Extradition Treaty specify?
Countries should recognize money laundering as an extraditable offense.
As a financial institution service that is very vulnerable to money laundering.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
A fund setup by an investment trust that issues a fixed number of shares to its investors. As such - the market price of the shares fluctuates - often selling at a premium or discount to the fund's net asset value (NAV).


45. What is private investment company also known as?
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.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.


46. Respondent Bank

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47. What was the target of UN Security Council Resolution 1373?
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Terrorism and Terrorist Financing


48. What does the 'SEC' (US Securities and Exchange Commission) do?
Processes transactions for merchants who accept credit cards.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.


49. Why does a launderer try to run transactions through a concentration account of a financial institution?
Review customer files and conduct random sampling of accounts.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Stored Value Cards - Mobile Payments - Internet Payments.
Canada


50. FATF Recommendation 36
Provide mutual legal assistance.
It conducts investigations in support of a government's confiscation or seizure efforts.
The sale of a stock that the investor does not own. To do so - a securities intermediary 'loans' the stock to the investor - which comes from the intermediary's own inventory - another client's margin account or another intermediary.
www.artloss.com