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. Why do convertible bonds oftern have lower interest rates than non-convertible bonds?
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.
They can accrue value as the price of the underlying stock rises.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
The nature of the request - the relevant criminal charges in the requesting country - the legal provision under which the request is made - and the information that is sought.


2. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
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.
Banking services between merchant banks and other financial institutions.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Confiscation


3. 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...
Direct or indirect advisor on buying and selling futures or commodity options.
that appear to be linked
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.


4. Vital Service Providers (VSPs)
Middle East and North Africa Financial Action Task Force
that appear to be linked
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.
People who help move the billions of dollars drug traffickers earn around the world.


5. Basel's 'CDD for Banks' states that the decision to open an account for a PEP should be taken at...
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
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.
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.
a Sr Management level


6. The 'Art Loss Register'

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7. FATF Recommendation 2
As a financial institution service that is very vulnerable to money laundering.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Countries should recognize money laundering as an extraditable offense.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.


8. Behaviour detection

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9. EAG
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.
EurAsian Group
Review customer files and conduct random sampling of accounts.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.


10. USA Patriot Act Section 312 'Offshore Bank'
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
a chain-referral scheme.
A bank whose license has conditions that prohibhit the licensed entity from conducting banking activities with the citizens - or with the local currency - of the country that issued that license.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.


11. FATF Recommendation 21
Middle East and North Africa Financial Action Task Force
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
Placement - Layering - Integration.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.


12. Examples of White-collar crime
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Expatriates sending money back to their home country or by other individuals sending money abroad.


13. 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?
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Review customer files and conduct random sampling of accounts.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Foreign Corrupt Practices Act


14. White-Collar crime

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15. Futures Commission Merchant (FCM)
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.


16. Why is a 'money order' attractive to a money launderer?
An electronic quotation system that displays quotes of many securities traded over the counter.
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.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
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.


17. Fraud
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
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.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
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.


18. Commodity Trading Advisor
Direct or indirect advisor on buying and selling futures or commodity options.
No.
As 'felonies' or 'all offenses in the criminal code'.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.


19. What criterion does the US need to enforce its 'Extraterritorial Reach'?

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20. What does a 'Commission Rogatoire' normally specify?
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
The nature of the request - the relevant criminal charges in the requesting country - the legal provision under which the request is made - and the information that is sought.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.


21. Guaranteed Introducing Broker

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22. Structuring is a common technique in jurisdictions that...
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
Letters Rogatory
have in place compulsory currency reporting requirements.
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.


23. FATF Recommendation 1
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.


24. Investigative Log
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
Competent authorities should have powers of subpoena - search and seizure.
Stored Value Cards - Mobile Payments - Internet Payments.


25. What the primary objectives of Offshore Group of Banking Supervisors?
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.
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.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.


26. FATF Recommendation 30
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.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


27. FATF Recommendation 33
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Report suspicious transactions linked to terrorism.
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.


28. FATF Recommendation 31
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.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


29. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Strengthen customer identification measures in iternational and domestic wire transfers.
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.
Impose AML requirements on alternative remittance systems.


30. Commodity Pool Operator
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.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
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
It was the first law in any country to make money laundering a crime.


31. What was the target of UN Security Council Resolution 1267?
They can accrue value as the price of the underlying stock rises.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


32. What can result from on institution's disregard for the Basel Due Diligence Principle?
Funds transfers - Shell Corporations - Contractual 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.
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.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.


33. A public perception that a bank is not able to manage its operational risk effectively can...
Reliable - independent source of documents - data or information.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
disrupt or adversely afftect the business of the bank.


34. FATF
Financial Action Task Force
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.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws


35. 'Open-end Mutual Fund' (or Company)

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36. 'Commission Rogatoire' known in English as?
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
Letters Rogatory


37. Apostille

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38. What do boiler room salespeople typically do?

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39. Nostro

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40. Scheme
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.
www.artloss.com
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.


41. Operational risks in KYC context relate to...
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Canada
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Report suspicious transactions linked to terrorism.


42. What are the three main functions of a 'Transfer Agent'?
An electronic quotation system that displays quotes of many securities traded over the counter.
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).
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.
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.


43. Counter Party
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
The opposing part of a transaction or trade.
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.


44. Free Look Period
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.


45. Downstream Correspondent Clearer
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.
Financial Action Task Force on Money Laundering in South America
Placement - Layering - Integration.
FATF principles should apply to all branches and subsidiaries of a financial institution - even those abroad. Inability to do should re reported to parent institution's regulatory/supervisory authority.


46. FCPA (US)
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Foreign Corrupt Practices Act
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.


47. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data


48. Characteristics of an 'Open System Stored Value Card'
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.
The US State Dept issues the report annually.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Freeze and confiscate terrorist assets.


49. Abusive Squeezes

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50. Corporate Bank

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