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. 'Kiting' via credit card
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.

2. Margin
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.

3. Credit Card Associations
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 ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
It was the first law in any country to make money laundering a crime.

4. Investment Adviser
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 merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
Person who - for compensation - provides advice on securities and investments and manages client assets.

5. 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.
Money Laundering and Tax Evasion
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
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.

6. What is important about the US Money Laundering Control Act (MCLA)?
a Sr Management level
Financial Action Task Force
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
It was the first law in any country to make money laundering a crime.

7. What is the goal of FSAP?
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
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.
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.

8. FATF Recommendation 11
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.
Direct money of Criminal A is sent to foreign bank account of company B. Investment company C is formed as A's country. A is appointed as director of C. C borrows money from B and buys building which is rented to 3rd parties. with rent - C pays off B
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
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.

9. Cash Equivalent

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

10. What do boiler room salespeople typically sell?
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Penny Stocks
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
It conducts investigations in support of a government's confiscation or seizure efforts.

11. Moneyval
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
A market is which securities are bought and sold outside of establisehd securities markets.

12. FATF Recommendations examples of non-financial businesses and professions
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
a chain-referral scheme.

13. 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...
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.
tipped off that they are being investigated.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
that appear to be linked

14. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Strengthen customer identification measures in iternational and domestic wire transfers.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
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.

15. FATF Recommendation 2
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.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
Freeze and confiscate terrorist assets.

16. GAFISUD
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
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.
Processes transactions for merchants who accept credit cards.
Financial Action Task Force on Money Laundering in South America

17. 'Competent Authorities' refers to _____.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Reliable - independent source of documents - data or information.
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.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.

18. Commodity
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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
have in place compulsory currency reporting requirements.

19. Why do convertible bonds oftern have lower interest rates than non-convertible bonds?
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.
They can accrue value as the price of the underlying stock rises.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
that appear to be linked

20. Short Sale

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

21. (Credit Card) Third-Party processor
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.

22. Open System Stored Value Card
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.
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 prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).

23. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
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.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
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
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].

24. Scheme
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
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.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Money Laundering and Tax Evasion

25. CFT
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.

26. What is meant by 'Know Your Customer's customer'?
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Terrorism and Terrorist Financing

27. A 'Cash Letter' can also be referred to as _____.
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
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.
Strengthen customer identification measures in iternational and domestic wire transfers.
Pouch activity.

28. Investigative Log
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
It conducts investigations in support of a government's confiscation or seizure efforts.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
tipped off that they are being investigated.

29. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
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.
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.

30. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
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.
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.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.

31. Vital Service Providers (VSPs)
The International Monetary Fund (IMF) and the world bank conduct the joint program.
foreign correspondent banks
2% - 5% ($590B - $1.5T)
People who help move the billions of dollars drug traffickers earn around the world.

32. 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...
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.
foreign correspondent banks
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.

33. What was the effect of the 1988 Vienna Convention as it relates to extradtition?
If provided for money laundering to be an internationally extraditable offense.
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.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.

34. Who appoints a 'Federal Receiver' (US)?
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
A US Federal Court
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.

35. Bust-out
Reliable - independent source of documents - data or information.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Take immediate steps to ratify and implement the UN instruments.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism

36. FATF Recommendation 6
Canada
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
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 ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.

37. Respondent Bank

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

38. Dematerialization of Securities

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

39. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).

40. Penny Stocks
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.
Securities with very low marker price - volume and/or liquidity that are traded on a securities exchange or on the OTC markets. They tend to be more volatile than those on the major exchanges.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
Report suspicious transactions linked to terrorism.

41. What does Financial Sector AssessmentProgram (FSAP) do?
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
disrupt or adversely afftect the business of the bank.
As 'felonies' or 'all offenses in the criminal code'.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.

42. Why is a 'money order' attractive to a money launderer?
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.
Harmful or Preferrential Tax Regimes.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
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.

43. FATF Recommendation 31
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).
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
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]

44. Where is the Art Loss Register found?
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
www.artloss.com
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
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.

45. MENAFATF
Middle East and North Africa Financial Action Task Force
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).
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.

46. The IMF estimates that laundered funds compromise ______ of the world's GDP
Letters Rogatory
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
2% - 5% ($590B - $1.5T)
The FIU of Russia

47. Pink Sheets
An electronic quotation system that displays quotes of many securities traded over the counter.
have in place compulsory currency reporting requirements.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.

48. FATF Recommendation 14
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.

49. FATF Recommendation 27
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.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)

50. Operational risks in KYC context relate to...
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Strengthen customer identification measures in iternational and domestic wire transfers.
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.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.

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