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. How does 'Product Diversion' work?
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.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
As a financial institution service that is very vulnerable to money laundering.
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.


2. Pink Sheets
An electronic quotation system that displays quotes of many securities traded over the counter.
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.
Financial Action Task Force on Money Laundering in South America
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.


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

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


4. Many jurisdictions have legislation to ensure that suspects are not ____?
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
tipped off that they are being investigated.
Financial Action Task Force
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.


5. OCC Office of the Comptroller of the Currency
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.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.


6. FATF Recommendation 29
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.
The FIU of Russia
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.


7. Cash Log

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


8. FATF Recommendation 10
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
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.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Canada


9. FATF Recommendation 1
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.


10. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
Stored Value Cards - Mobile Payments - Internet Payments.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.


11. Investment Adviser
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
Person who - for compensation - provides advice on securities and investments and manages client assets.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
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]


12. Identification data
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
A market is which securities are bought and sold outside of establisehd securities markets.
Reliable - independent source of documents - data or information.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


13. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
No.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.


14. Cash Letter
Intergovernmental Action Group against Money Laundering in Africa
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
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.
Person who - for compensation - provides advice on securities and investments and manages client assets.


15. Examples of VSP's
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
Person who - for compensation - provides advice on securities and investments and manages client assets.
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.


16. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
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
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Intergovernmental Action Group against Money Laundering in Africa


17. (Stock) Warrants
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
no regulatory power or function
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.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.


18. 'Kiting' via credit card
It conducts investigations in support of a government's confiscation or seizure efforts.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.


19. FATF Recommendation 24
An electronic quotation system that displays quotes of many securities traded over the counter.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.


20. US law prohibhits Foriegn Shell Banks from ____?
The opposing part of a transaction or trade.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
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.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)


21. Reverse Flip

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


22. What are the two types of Stored Value Cards?
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.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Open and Closed system


23. What are the three main functions of a 'Transfer Agent'?
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 merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
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.


24. FATF Recommendation 18
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
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.
Countries should recognize money laundering as an extraditable offense.
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.


25. FATF Recommendation 36
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.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Provide mutual legal assistance.


26. What was the target of UN Security Council Resolution 1373?
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Terrorism and Terrorist Financing


27. 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.
tipped off that they are being investigated.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.


28. Apostille

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


29. Why do convertible bonds oftern have lower interest rates than non-convertible bonds?
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
They can accrue value as the price of the underlying stock rises.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


30. What is the Federal Service for Financial Monitoring?
The FIU of Russia
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Typical mass-market banking where individual customers use local branches of larger commercial banks.


31. What does FIU do?
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
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.
no regulatory power or function
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.


32. Corporate Bank

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


33. Agent (Insurance Industry)
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.
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
The FIU of Russia
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


34. SRO (Self-Regulatory Organizations)
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
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.
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.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


35. Abusive Squeezes

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


36. FATF Recommendation 17
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.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
a Sr Management level


37. What the primary objectives of Offshore Group of Banking Supervisors?
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
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.
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.


38. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
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.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.


39. FATF Recommendation 28
Harmful or Preferrential Tax Regimes.
Competent authorities should have powers of subpoena - search and seizure.
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.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


40. Penny Stocks
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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.


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

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


42. Dormant Account
An account that does not show activity other than the posting of interest or account maintenance fees.
2% - 5% ($590B - $1.5T)
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.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


43. The Palemo Convention
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]
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.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
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.


44. USA Patriot Act Section 312 'Offshore Bank'
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
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.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.


45. What does the 'SEC' (US Securities and Exchange Commission) do?
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
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 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.
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.


46. Commodity Trading Advisor
Direct or indirect advisor on buying and selling futures or commodity options.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
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.


47. Free Look Period
No.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


48. Dematerialization of Securities

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


49. FATF Recommendation 16
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 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.


50. How are 'Predicate Crimes' sometimes identified?

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