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. FATF Recommendation 13
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Strengthen customer identification measures in iternational and domestic wire transfers.


2. FATF's designated transactional threshold for Financial Insitutions is _____.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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.
Countries should recognize money laundering as an extraditable offense.
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.


3. Apostille

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

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5. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
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.
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.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
Stored Value Cards - Mobile Payments - Internet Payments.


6. FATF Recommendation 9
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.
Combines funds from various members and users them to trade in futures or options contracts.
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.
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]


7. 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
Harmful or Preferrential Tax Regimes.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.


8. Cash Log

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9. How are 'Predicate Crimes' sometimes identified?

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10. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
www.artloss.com
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.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].


11. Abusive Squeezes

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12. May a shell bank maintain a correspondent account with a US bank?
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
Reliable - independent source of documents - data or information.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
No.


13. What is a 'NCCT'?
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.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
To provide a forum for FIU's (Financial Intelligence Unit) to improve support to their respective national AML progrmans and development protocols for the sharing of information.


14. FATF Sepcial Recommendation on Terrorist Financing -- SR One
Take immediate steps to ratify and implement the UN instruments.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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.
The International Monetary Fund (IMF) and the world bank conduct the joint program.


15. Structuring is a common technique in jurisdictions that...
have in place compulsory currency reporting requirements.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
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.


16. What does FIU do?
The FIU of Russia
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
Banking services between merchant banks and other financial institutions.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.


17. Account Monitoring Order (UK and several other countries)
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
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.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.


18. Convertible Bond
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.
no regulatory power or function
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 merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.


19. Transparency International
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
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.
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.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


20. FATF Recommendation 30
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
An introducing broker-dealer with an exclusive written agreement with a Futures Commission Merchant (FCM) that obligates the FCM to assume responsibility for the introducing broker's performance.
Foreign Corrupt Practices Act


21. Vital Service Providers (VSPs)
Pouch activity.
People who help move the billions of dollars drug traffickers earn around the world.
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.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws


22. Short Sale

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23. What is private investment company also known as?
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.
Terrorism and Terrorist Financing
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.
Middle East and North Africa Financial Action Task Force


24. 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...
that appear to be linked
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Strengthen customer identification measures in iternational and domestic wire transfers.
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.


25. How does 'Product Diversion' work?
It was the first law in any country to make money laundering a crime.
Product is purchsed with terms that it is going to foreign country A. While in transit - the product is diverted back to originating country or to another foreign market where the greatly discounted price provides for extreme profits.
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]
They can accrue value as the price of the underlying stock rises.


26. Commodity
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Take immediate steps to ratify and implement the UN instruments.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Banking services between merchant banks and other financial institutions.


27. FATF Recommendation 23
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).
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
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.
2% - 5% ($590B - $1.5T)


28. What do boiler room salespeople typically do?

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29. Market Manipulation
Person who - for compensation - provides advice on securities and investments and manages client assets.
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.
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.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.


30. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Report suspicious transactions linked to terrorism.
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]


31. What are the three main functions of a 'Transfer Agent'?
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
Confiscation
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.


32. FATF Recommendation 40
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.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
The world's largest private DB of stolen art.


33. Derivatives
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
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 corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.


34. 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...
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Typical mass-market banking where individual customers use local branches of larger commercial banks.
no regulatory power or function


35. FATF Recommendation 7

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36. (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.
Strengthen customer identification measures in iternational and domestic wire transfers.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
www.artloss.com


37. Why is 'refining' critical to a money launderer's efforts?
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
As 'felonies' or 'all offenses in the criminal code'.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).


38. 'Kiting' via credit card
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Freeze and confiscate terrorist assets.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism


39. Mutual Fund
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
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.
Terrorism and Terrorist Financing
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.


40. FATF Recommendation 39
As a financial institution service that is very vulnerable to money laundering.
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
Countries should recognize money laundering as an extraditable offense.
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.


41. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
As a financial institution service that is very vulnerable to money laundering.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
Strengthen customer identification measures in iternational and domestic wire transfers.


42. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
EurAsian Group
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.


43. Legal Arrangements (Insurance Industry)
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
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.
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]
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.


44. What does a 'Commission Rogatoire' normally specify?
It conducts investigations in support of a government's confiscation or seizure efforts.
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.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
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.


45. Open System Stored Value Card
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
An account that does not show activity other than the posting of interest or account maintenance fees.


46. What is one of the cental stragetic tools required for effective action against money laundering?
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.
Confiscation
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Competent authorities should have powers of subpoena - search and seizure.


47. What does FIU do beyond what FIU does?

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48. Distribution Channels (Insurance Industry)
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
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]
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.


49. 'Commission Rogatoire' known in English as?
As 'felonies' or 'all offenses in the criminal code'.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
Letters Rogatory


50. What are some of the AML dangers of casino junkets?
An electronic quotation system that displays quotes of many securities traded over the counter.
Combines funds from various members and users them to trade in futures or options contracts.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
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.