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

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2. In what country is the Egmont Group Secretariat now located?
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.
Canada
A record that financial institutions must retain for each cash sale of bank checks - drafts - money orders - cashier's checks and traveller's checks between $3 -000 and $10 -000.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.


3. FATF Recommendation 15
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.


4. Counter Party
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]
The opposing part of a transaction or trade.
As a financial institution service that is very vulnerable to money laundering.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.


5. Commodity
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


6. Who appear to be predominant users of hawalas and other alternative remittance systems?
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
Freeze and confiscate terrorist assets.
Expatriates sending money back to their home country or by other individuals sending money abroad.
bear the mark 'APOSTILLE'


7. Pink Sheets
An electronic quotation system that displays quotes of many securities traded over the counter.
The FIU of Russia
a Sr Management level
that appear to be linked


8. Why do companies export their goods at prices far below those in their home country?
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).


9. 'Competent Authorities' refers to _____.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.


10. Commodity Pool
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.
As a financial institution service that is very vulnerable to money laundering.
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.
Combines funds from various members and users them to trade in futures or options contracts.


11. Wholesale Banking
Banking services between merchant banks and other financial institutions.
bear the mark 'APOSTILLE'
As 'felonies' or 'all offenses in the criminal code'.
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.


12. Reverse Flip

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13. What do boiler room salespeople typically do?

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14. FATF Recommendation 11
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.
EurAsian Group
The US State Dept issues the report annually.
Reliable - independent source of documents - data or information.


15. What is one of the Financial Service Authority's (UK) tasks?
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
To reduce financial crime - including money laundering and terrorit financing.


16. Where is the Art Loss Register found?
Firm or person that solicits and accepts commodity futures orders from customers but does not accept funds. Two types of IB_C's: Guaranteed and Independent.
A 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.
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.
www.artloss.com


17. Dematerialization of Securities

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18. FATF Recommendation 27
Countries should recognize money laundering as an extraditable offense.
Financial Action Task Force
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.


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

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20. Derivatives
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Countries should recognize money laundering as an extraditable offense.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.


21. Vital Service Providers (VSPs)
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.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
Impose AML requirements on alternative remittance systems.
People who help move the billions of dollars drug traffickers earn around the world.


22. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
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 allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.


23. What does FIU do beyond what FIU does?

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24. Why is it imperative to have a strong Know Your Employee program?
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
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.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.


25. Dormant Account
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
An account that does not show activity other than the posting of interest or account maintenance fees.
Foreign Corrupt Practices Act
As 'felonies' or 'all offenses in the criminal code'.


26. Many jurisdictions have legislation to ensure that suspects are not ____?
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.
tipped off that they are being investigated.
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.


27. Why does a launderer try to run transactions through a concentration account of a financial institution?
As 'felonies' or 'all offenses in the criminal code'.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
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.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.


28. What is one of the cental stragetic tools required for effective action against money laundering?
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 Action Task Force
Confiscation


29. FATF Recommendation 9
no regulatory power or function
Futures contracts - forwards - swaps or options.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
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.


30. 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.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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.


31. Who conducts the Financial Sector Assessment Program (FSAP)?
EurAsian Group
The International Monetary Fund (IMF) and the world bank conduct the joint program.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Financial Action Task Force on Money Laundering in South America


32. Affidavit
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.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
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.
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.


33. OTC markets Over-The-Counter
A market is which securities are bought and sold outside of establisehd securities markets.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
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.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.


34. Money Mules
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
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.
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.
If provided for money laundering to be an internationally extraditable offense.


35. What is the aim of Joint Money Laundering Steering Group? (UK)
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.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
bear the mark 'APOSTILLE'
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws


36. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
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 detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.


37. Apostille

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38. Foriegn Shell Banks are vehicles for ______ & ______?
Money Laundering and Tax Evasion
www.artloss.com
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
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.


39. Market Manipulation
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.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
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.
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.


40. Why is understanding 'Product Diversion' important to the AML investigator?
Combines funds from various members and users them to trade in futures or options contracts.
It was the first law in any country to make money laundering a crime.
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).
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.


41. What tend to be the markings of Private Banking transactions?
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
Person who - for compensation - provides advice on securities and investments and manages client assets.


42. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
Confiscation
Expatriates sending money back to their home country or by other individuals sending money abroad.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.


43. Margin
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
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.


44. The Joint Money Laundering Steering Group (UK) has published a series of AML Guidance Notes for different sectors of the financial community. But - As a group of trade associations - it has...
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
no regulatory power or function
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.


45. Abusive Squeezes

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46. What are some of the AML dangers of casino junkets?
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.
Placement - Layering - Integration.
Take immediate steps to ratify and implement the UN instruments.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.


47. FCPA (US)
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.
have in place compulsory currency reporting requirements.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Foreign Corrupt Practices Act


48. Express Trust
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Financial Action Task Force
disrupt or adversely afftect the business of the bank.


49. In general terms - EDD requires what of a financial institution?

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50. A 'Cash Letter' can also be referred to as _____.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Pouch activity.
The world's largest private DB of stolen art.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.