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 38
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.
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'
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.
The FIU of Russia


2. Common types of 'Derivatives'
Futures contracts - forwards - swaps or options.
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.
Reliable - independent source of documents - data or information.
no regulatory power or function


3. 'Introducing Broker-Dealers in Commodities' (IB-C)

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4. Behaviour detection

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5. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
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.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.


6. What does an Extradition Treaty specify?
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Countries should recognize money laundering as an extraditable offense.
have in place compulsory currency reporting requirements.
Funds transfers - Shell Corporations - Contractual Transactions.


7. FATF Recommendation 16
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.
foreign correspondent banks
The FIU of the UK
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.


8. FATF Recommendation 11
Foreign Corrupt Practices Act
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
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.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.


9. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
Person who - for compensation - provides advice on securities and investments and manages client assets.
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 detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
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.


10. Futures Commission Merchant (FCM)
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Foreign Corrupt Practices Act
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.


11. What do boiler room salespeople typically do?

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12. 'Loan Back' method. Give example of how it works.

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13. FATF Recommendation 21
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.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.


14. Commodity Pool
Combines funds from various members and users them to trade in futures or options contracts.
Provide mutual legal assistance.
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
The FIU of the UK


15. Scheme
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
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.
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.


16. When was the Offshore Group of Banking Supervisors established? What was the impetus behind its establishment?
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.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
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.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).


17. Commodity
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.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Review customer files and conduct random sampling of accounts.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.


18. Automated Sale
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).
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
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.
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.


19. Short Sale

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20. The 'Art Loss Register'

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21. Underwriting
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.
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.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Futures contracts - forwards - swaps or options.


22. GAFISUD
Financial Action Task Force on Money Laundering in South America
As 'felonies' or 'all offenses in the criminal code'.
Solicits potential customers and issues the credit cards.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.


23. Where is the Art Loss Register found?
www.artloss.com
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 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).
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.


24. FATF Recommendation 29
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.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Market participants intentionally restrict a security's liquidity. May lead to increased profits when the security's price rises due to the lack of 'supply'.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)


25. A 'Cash Letter' can also be referred to as _____.
A market is which securities are bought and sold outside of establisehd securities markets.
Pouch activity.
bear the mark 'APOSTILLE'
It was the first law in any country to make money laundering a crime.


26. Market Manipulation
www.artloss.com
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.
Provide mutual legal assistance.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


27. What tend to be the markings of Private Banking transactions?
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).
Canada
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].


28. FATF Sepcial Recommendation on Terrorist Financing -- SR Four
Report suspicious transactions linked to terrorism.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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.


29. Why is a 'money order' attractive to a money launderer?
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.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Canada
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).


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

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31. Affidavit
The opposing part of a transaction or trade.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
Penny Stocks
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.


32. (Credit Card) Third-Party processor
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
A US Federal Court
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
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.


33. FATF Recommendation 26
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Freeze and confiscate terrorist assets.


34. Convertible Preferred
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
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.
Combines funds from various members and users them to trade in futures or options contracts.
Solicits potential customers and issues the credit cards.


35. Examples of White-collar crime
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.
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.
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.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


36. How is 'Identity theft' often accomplished?
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
EurAsian Group
Solicits potential customers and issues the credit cards.
that appear to be linked


37. FATF Recommendation 17
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
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.


38. Guaranteed Introducing Broker

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39. 'Kiting' via credit card
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.
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.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
To reduce financial crime - including money laundering and terrorit financing.


40. Who conducts the Financial Sector Assessment Program (FSAP)?
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Futures contracts - forwards - swaps or options.
a Sr Management level


41. FATF Recommendation 31
A co-operative property seller agrees to sell home at a well-below market reported price - then accepts the difference 'under the table'. When launderer later sells house - he recognizes 'gain' and all funds appear legitimate as it sold at market.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization


42. Structuring is a common technique in jurisdictions that...
have in place compulsory currency reporting requirements.
Competent authorities should have powers of subpoena - search and seizure.
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 FIU of Russia


43. FATF Recommendation 20
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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.
Financial Action Task Force
Countering the Financing of Terrorism (Counter Terrorist Financing).


44. May a shell bank maintain a correspondent account with a US bank?
No.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
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'
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.


45. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
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.
Placement - Layering - Integration.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].


46. What is the FCPA primarily known for?
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
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).
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.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.


47. Variable Annuity
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.
Penny Stocks
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.


48. 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
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.
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.
Solicits potential customers and issues the credit cards.


49. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
Transportation/transfer of funds (even clean) to/from the US - if done to promote unlawful activity - or with knowledge that the funds are illicit - or to conceal/disguise the nature - location - source - ownership - etc. of funds - or to avoid feder
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
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.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.


50. What does FIU do?
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
bear the mark 'APOSTILLE'
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
A market is which securities are bought and sold outside of establisehd securities markets.