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 17
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization


2. FATF Recommendation 14
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
The FIU of the UK
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.


3. FATF
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.
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.
Financial Action Task Force
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.


4. What was the target of UN Security Council Resolution 1373?
Terrorism and Terrorist Financing
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]
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.
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.


5. Boiler Room
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
People who help move the billions of dollars drug traffickers earn around the world.
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.


6. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
a Sr Management level
Impose AML requirements on alternative remittance systems.
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).
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)


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

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8. What is the Serious Organised Crime Agency (SOCA)?
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
The FIU of the UK
The opposing part of a transaction or trade.
It conducts investigations in support of a government's confiscation or seizure efforts.


9. How does the Egmont group help its members?
Expanding/Systemising the exchange of financial intelligence - improving expertise/capabilities of their personnel - fostering better communication by applying new technologies and sharing financial crimes investigations information.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
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


10. A notary can issue a Apostille but it must be in a country that signed The Hague Convention (1961) and it must ___________. If the notary doesn't understand - find another one.

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11. Why is 'Know Your Correspondent Bank' important?
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Placement - Layering - Integration.
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.


12. Who appear to be predominant users of hawalas and other alternative remittance systems?
Expatriates sending money back to their home country or by other individuals sending money abroad.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
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
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.


13. A 'Cash Letter' can also be referred to as _____.
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
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]
Confiscation
Pouch activity.


14. What the primary objectives of Offshore Group of Banking Supervisors?
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.
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.
Person who - for compensation - provides advice on securities and investments and manages client assets.
People who help move the billions of dollars drug traffickers earn around the world.


15. (Credit Card) Issuing Bank
Competent authorities should have powers of subpoena - search and seizure.
2% - 5% ($590B - $1.5T)
They can accrue value as the price of the underlying stock rises.
Solicits potential customers and issues the credit cards.


16. FATF Recommendation 29
A US Federal Court
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).
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
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


17. What is the Wolfsberg group?
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
Harmful or Preferrential Tax Regimes.
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'
Expatriates sending money back to their home country or by other individuals sending money abroad.


18. What is the primary use of a 'Mutual Legal Assistance Treaty'?
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
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.


19. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
The US State Dept issues the report annually.
Open and Closed system
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


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

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21. FATF Recommendation 12
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
A US Federal Court
Foreign Corrupt Practices Act
2% - 5% ($590B - $1.5T)


22. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Financial Action Task Force on Money Laundering in South America


23. FCPA (US)
Foreign Corrupt Practices Act
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.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.


24. Options/Options Contract
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.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.


25. FATF Recommendation 37
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
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.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.


26. FATF's designated transactional threshold for Financial Insitutions is _____.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
It was the first law in any country to make money laundering a crime.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.


27. Cash Letter
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
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]


28. FATF Sepcial Recommendation on Terrorist Financing -- SR Five

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29. What is a 'Trust'?
Banking services between merchant banks and other financial institutions.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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 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. Agent (Insurance Industry)
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.
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
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


31. FATF Sepcial Recommendation on Terrorist Financing -- SR Eight
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Penny Stocks
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.


32. What is a 'NCCT'?
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.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
It was the first law in any country to make money laundering a crime.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.


33. Abusive Squeezes

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34. What does a 'Commission Rogatoire' normally specify?
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
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.
The world's largest private DB of stolen art.


35. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
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.
Impose AML requirements on alternative remittance systems.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.


36. Portfolio Manager
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
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 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.


37. How are 'Predicate Crimes' sometimes identified?

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38. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
An account that does not show activity other than the posting of interest or account maintenance fees.
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.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.


39. Arrest Warrant
Terrorism and Terrorist Financing
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
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.


40. Who conducts the Financial Sector Assessment Program (FSAP)?
The International Monetary Fund (IMF) and the world bank conduct the joint program.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
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.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].


41. Automated Sale
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.
Terrorism and Terrorist Financing
Provide mutual legal assistance.
An electronic quotation system that displays quotes of many securities traded over the counter.


42. 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.
Letters Rogatory
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.
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.


43. The 'Art Loss Register'

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44. FATF Sepcial Recommendation on Terrorist Financing -- SR Four
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
The FIU of Russia
Report suspicious transactions linked to terrorism.


45. Free Look Period
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 trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
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 contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.


46. Downstream Correspondent Clearer
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
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.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
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.


47. Characteristics of an 'Open System Stored Value Card'
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
2% - 5% ($590B - $1.5T)
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.


48. Who are the parties involved in a trust?
Confiscation
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Letters Rogatory
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.


49. When was the Offshore Group of Banking Supervisors established? What was the impetus behind its establishment?
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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.
2% - 5% ($590B - $1.5T)
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)


50. Account Monitoring Order (UK and several other countries)
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
People who help move the billions of dollars drug traffickers earn around the world.