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 2
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
Penny Stocks


2. Legal Arrangements (Insurance Industry)
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
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]
Expatriates sending money back to their home country or by other individuals sending money abroad.
As a financial institution service that is very vulnerable to money laundering.


3. EAG
EurAsian Group
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
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'
As a financial institution service that is very vulnerable to money laundering.


4. FCPA (US)
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
The FIU of Russia
Foreign Corrupt Practices Act
Represents a profession and is made up of member professionals; has a role in regulating the persons who are qualified to enter and who practise the profession; performs cetain supervisory or monitoring type function.


5. Example of use of an Apostille
A US Federal Court
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 US State Dept issues the report annually.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.


6. What do boiler room salespeople typically do?

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7. 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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8. Abusive Squeezes

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9. FATF Recommendation 19
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.
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.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
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.


10. What are included in the Wolfsberg AML Principles on Private Banking?
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
Penny Stocks


11. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
disrupt or adversely afftect the business of the bank.
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).


12. May a shell bank maintain a correspondent account with a US bank?
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.
Combines funds from various members and users them to trade in futures or options contracts.
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.
No.


13. (Stock) Warrants
Combines funds from various members and users them to trade in futures or options contracts.
foreign correspondent banks
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.


14. Open System Stored Value Card
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
no regulatory power or function
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.


15. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
The US State Dept issues the report annually.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.


16. Behaviour detection

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17. FATF Recommendation 1
As 'felonies' or 'all offenses in the criminal code'.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


18. 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
Financial institutions should pay special attention to (and examine & document) complex - unusual large transactions - and all transactions which have no apparent economic or lawful purpose.
A 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).
2% - 5% ($590B - $1.5T)
Harmful or Preferrential Tax Regimes.


19. Structuring is a common technique in jurisdictions that...
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
have in place compulsory currency reporting requirements.


20. Agent (Insurance Industry)
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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


21. 'Commission Rogatoire' known in English as?
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Letters Rogatory


22. FATF Recommendation 5
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Open and Closed system
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
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.


23. Why is a 'money order' attractive to a money launderer?
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.


24. In what country is the Egmont Group Secretariat now located?
disrupt or adversely afftect the business of the bank.
The FIU of the UK
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
Canada


25. Three stages of money laundering
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.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
Placement - Layering - Integration.


26. FATF
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Financial Action Task Force
Terrorism and Terrorist Financing
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


27. What is a 'NCCT'?
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.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.


28. What do boiler room salespeople typically sell?
Middle East and North Africa Financial Action Task Force
Penny Stocks
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.


29. What is important about the US Money Laundering Control Act (MCLA)?
It was the first law in any country to make money laundering a crime.
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.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
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.


30. Why is 'Know Your Customer's Customer' important?
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Take immediate steps to ratify and implement the UN instruments.
Combines funds from various members and users them to trade in futures or options contracts.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].


31. Cash Log

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32. What was the target of UN Security Council Resolution 1267?
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
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
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.


33. A pyramid scheme is also called...
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
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.
a chain-referral scheme.


34. What is the Serious Organised Crime Agency (SOCA)?
The FIU of the UK
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
An account that does not show activity other than the posting of interest or account maintenance fees.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.


35. Examples of White-collar crime
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]
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.


36. What is one of the cental stragetic tools required for effective action against money laundering?
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Confiscation
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.


37. Basel committee's 'Customer Due Diligence for Banks' when verifying a unit's compliance with KYC policies and procedures - the home country supervisors or auditors should do what?
Penny Stocks
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Placement - Layering - Integration.
Review customer files and conduct random sampling of accounts.


38. A public perception that a bank is not able to manage its operational risk effectively can...
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
disrupt or adversely afftect the business of the bank.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.


39. FATF Recommendation 7

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40. FATF Recommendation 8
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.


41. FATF Recommendation 23
As a financial institution service that is very vulnerable to money laundering.
Report suspicious transactions linked to terrorism.
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.
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.


42. FATF Recommendation 18
Countries should not allow shell banks. Financial institutions should not have correspondent banking relationships with shell banks or banks that allow shell banks to do business through their accounts.
To reduce financial crime - including money laundering and terrorit financing.
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.
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).


43. 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.
Urge investors to buy 'house stocks' - stocks that the firm buys and sells as a market maker or has in its inventory. Oftentimes - they are running a 'pump-and-dumo' scheme.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.


44. FATF Recommendation 12
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
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'
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.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.


45. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
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.
It conducts investigations in support of a government's confiscation or seizure efforts.
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.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.


46. FATF Recommendation 16
If provided for money laundering to be an internationally extraditable offense.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
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.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.


47. 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.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
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.
disrupt or adversely afftect the business of the bank.


48. Moneyval
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
An account that does not show activity other than the posting of interest or account maintenance fees.
A US Federal Court
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.


49. 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...
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.
The FIU of the UK
foreign correspondent banks
A US Federal Court


50. MENAFATF
a chain-referral scheme.
Middle East and North Africa Financial Action Task Force
www.artloss.com
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.