Test your basic knowledge |

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. The USA Patriot Act enacted a number of statutory provisions that bear directly on the procedures US financial institutions must follow in connection with their...
foreign correspondent banks
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.

2. FATF Recommendation 18
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.
tipped off that they are being investigated.
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.
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.

3. How are 'Predicate Crimes' sometimes identified?

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

4. 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.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.

5. What does the 'SEC' (US Securities and Exchange Commission) do?
foreign correspondent banks
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
The FIU of the UK

6. What is the primary use of a 'Mutual Legal Assistance Treaty'?
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
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.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
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.

7. FATF Recommendation 31
The US State Dept issues the report annually.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.

8. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
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.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.

9. (Credit Card) Issuing Bank
Solicits potential customers and issues the credit cards.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Provide mutual legal assistance.

10. Portfolio Manager
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.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.

11. How is 'Legal Risk' defined by the 2001 Basel Due Diligence Principles?
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.
have in place compulsory currency reporting requirements.
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.
Letters Rogatory

12. UK courts view on 'Suspicion'
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 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]
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.
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.

13. EAG
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Intergovernmental Action Group against Money Laundering in Africa
EurAsian Group
It conducts investigations in support of a government's confiscation or seizure efforts.

14. Derivatives
Terrorism and Terrorist Financing
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
Intergovernmental Action Group against Money Laundering in Africa
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.

15. In what country is the Egmont Group Secretariat now located?
Canada
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
foreign correspondent banks

16. Commodity Pool Operator
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.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.

17. Transparency International
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
tipped off that they are being investigated.
Procedures used to determine the beneficial owners of a correspondent bank and the type of activity that wil be 'normal and expected' for the bank.
No.

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

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

19. Structuring is a common technique in jurisdictions that...
have in place compulsory currency reporting requirements.
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.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].

20. What is the Wolfsberg group?
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.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
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.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.

21. What was the target of UN Security Council Resolution 1267?
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
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.
a chain-referral scheme.

22. Arrest Warrant
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
People who help move the billions of dollars drug traffickers earn around the world.
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.

23. Operational risks in KYC context relate to...
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
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'.

24. FATF Recommendation 4
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Financial Action Task Force on Money Laundering in South America
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.

25. FATF Recommendation 7

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

26. What is the Serious Organised Crime Agency (SOCA)?
The FIU of the UK
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
It was the first law in any country to make money laundering a crime.
foreign correspondent banks

27. FATF Recommendation 39
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
Countries should recognize money laundering as an extraditable offense.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.

28. Investment Adviser
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.
Person who - for compensation - provides advice on securities and investments and manages client assets.
Pouch activity.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.

29. FATF Recommendation 10
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.

30. FATF Sepcial Recommendation on Terrorist Financing -- SR One
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
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 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.
Take immediate steps to ratify and implement the UN instruments.

31. What is the FCPA primarily known for?
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).
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.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
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.

32. FATF Recommendation 25
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
An account that does not show activity other than the posting of interest or account maintenance fees.
a chain-referral scheme.

33. FATF
Financial Action Task Force
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.

34. FATF Recommendation 14
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.

35. Account Monitoring Order (UK and several other countries)
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Middle East and North Africa Financial Action Task Force
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).
The FIU of Russia

36. What is the aim of Joint Money Laundering Steering Group? (UK)
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
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.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.

37. FATF Recommendation 11
Review customer files and conduct random sampling of accounts.
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
Financial institutions should pay special attention to (and examine & document) complex - unusual large transactions - and all transactions which have no apparent economic or lawful purpose.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.

38. What is one of the Financial Service Authority's (UK) tasks?
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'
To reduce financial crime - including money laundering and terrorit financing.
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).
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.

39. What is the Federal Service for Financial Monitoring?
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
The US State Dept issues the report annually.
As 'felonies' or 'all offenses in the criminal code'.
The FIU of Russia

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

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

41. FATF Recommendation 34
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
Financial Action Task Force
Review customer files and conduct random sampling of accounts.

42. Identification data
Reliable - independent source of documents - data or information.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
a chain-referral scheme.

43. Distribution Channels (Insurance Industry)
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
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]
Combines funds from various members and users them to trade in futures or options contracts.

44. What is one of the cental stragetic tools required for effective action against money laundering?
Confiscation
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.

45. Options/Options Contract
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
Funds transfers - Shell Corporations - Contractual 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.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.

46. GIABA
An account that does not show activity other than the posting of interest or account maintenance fees.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Intergovernmental Action Group against Money Laundering in Africa
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.

47. Automated Sale
The opposing part of a transaction or trade.
Reliable - independent source of documents - data or information.
Foreign Corrupt Practices Act
Use of electronic clearing houses to facilitate electronic transfers of money that complete transactions between two parties where the buyer receives securities - goods - services etc. in exchange for the money.

48. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
The International Monetary Fund (IMF) and the world bank conduct the joint program.
The US State Dept issues the report annually.
that appear to be linked
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.

49. 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
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.
foreign correspondent banks
Report suspicious transactions linked to terrorism.
Harmful or Preferrential Tax Regimes.

50. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
Financial institutions should pay special attention to (and examine & document) complex - unusual large transactions - and all transactions which have no apparent economic or lawful purpose.
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.
Stored Value Cards - Mobile Payments - Internet Payments.

Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?

Major Subjects
Tests & Exams AP CLEP DSST GRE SAT GMAT	Certifications CISSP go to https://www.isc2.org/ PMP ITIL RHCE MCTS More...	IT Skills Android Programming Data Modeling Objective C Programming Basic Python Programming Adobe Illustrator More...	Business Skills Advertising Techniques Business Accounting Basics Business Strategy Human Resource Management Marketing Basics More...
Soft Skills Body Language People Skills Public Speaking Persuasion Job Hunting And Resumes More...	Vocabulary GRE Vocab SAT Vocab TOEFL Essential Vocab Basic English Words For All Global Words You Should Know Business English More...	Languages AP German Vocab AP Latin Vocab SAT Subject Test: French Italian Survival Norwegian Survival More...	Engineering Audio Engineering Computer Science Engineering Aerospace Engineering Chemical Engineering Structural Engineering More...
Health Sciences Basic Nursing Skills Health Science Language Fundamentals Veterinary Technology Medical Language Cardiology Clinical Surgery More...	English Grammar Fundamentals Literary And Rhetorical Vocab Elements Of Style Vocab Introduction To English Major Complete Advanced Sentences Literature Homonyms More...	Math Algebra Formulas Basic Arithmetic: Measurements Metric Conversions Geometric Properties Important Math Facts Number Sense Vocab Business Math More...	Other Major Subjects Science Economics History Law Performing-arts Cooking Logic & Reasoning Trivia

Test your basic knowledge |

Certified Anti Money Laundering Specialist Cams

Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?

Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests

Major Subjects

Tests & Exams

Certifications

IT Skills

Business Skills

Soft Skills

Vocabulary

Languages

Engineering

Health Sciences

English

Math

Other Major Subjects

Browse all subjects

Browse all tests

Most popular tests