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. FCPA (US)
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Letters Rogatory
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Foreign Corrupt Practices Act


2. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
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.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.


3. FATF Recommendation 12
Freeze and confiscate terrorist assets.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
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.


4. Moneyval
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
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.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
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.


5. The 'Art Loss Register'

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6. Where is the Art Loss Register found?
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
www.artloss.com
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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.


7. 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...
Provide mutual legal assistance.
foreign correspondent banks
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.


8. FATF Recommendation 40
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
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.
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.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.


9. What is meant by 'Know Your Correspondent Bank'?

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10. FATF Recommendation 30
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'.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.


11. Guaranteed Introducing Broker

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12. Why is it imperative to have a strong Know Your Employee program?
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
foreign correspondent banks
Futures contracts - forwards - swaps or options.


13. OTC markets Over-The-Counter
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 market is which securities are bought and sold outside of establisehd securities markets.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
The world's largest private DB of stolen art.


14. What is the goal of FSAP?
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Competent authorities should have powers of subpoena - search and seizure.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.


15. Who appear to be predominant users of hawalas and other alternative remittance systems?
People who help move the billions of dollars drug traffickers earn around the world.
Expatriates sending money back to their home country or by other individuals sending money abroad.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.


16. What is one of the cental stragetic tools required for effective action against money laundering?
Confiscation
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 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).
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.


17. What is the goal of the Egmont group?

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18. Operational risks in KYC context relate to...
Report suspicious transactions linked to terrorism.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
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.
Terrorism and Terrorist Financing


19. How are 'Predicate Crimes' sometimes identified?

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20. Why is understanding 'Product Diversion' important to the AML investigator?
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.
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.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
The world's largest private DB of stolen art.


21. What is meant by 'Know Your Customer's customer'?
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.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
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.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.


22. A 'panzi' scheme is named for whom?
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).
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
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.


23. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Take immediate steps to ratify and implement the UN instruments.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
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.
Typical mass-market banking where individual customers use local branches of larger commercial banks.


24. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
The FIU of the UK
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Futures contracts - forwards - swaps or options.


25. FATF Recommendation 1
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
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).


26. A 'Cash Letter' can also be referred to as _____.
Financial Action Task Force on Money Laundering in South America
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
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.
Pouch activity.


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

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28. FATF Recommendation 6
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.


29. FATF Recommendation 37
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.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
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.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.


30. What is the Serious Organised Crime Agency (SOCA)?
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
The FIU of the UK


31. 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.
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.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Foreign Corrupt Practices Act


32. Why is 'Know Your Customer's Customer' important?
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Typical mass-market banking where individual customers use local branches of larger commercial banks.


33. What is a Private Investment company (PIC)?
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Countering the Financing of Terrorism (Counter Terrorist Financing).
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.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.


34. MENAFATF
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.
Middle East and North Africa Financial Action Task Force
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


35. Commodity
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Strengthen customer identification measures in iternational and domestic wire transfers.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


36. (Stock) Warrants
The opposing part of a transaction or trade.
www.artloss.com
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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.


37. Cash Letter
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
a Sr Management level
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.
Terrorism and Terrorist Financing


38. FATF Recommendation 3
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.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.


39. Penny Stocks
If provided for money laundering to be an internationally extraditable offense.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
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.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.


40. What were recently identified as Emerging Money Laundering risks?
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.
Funds transfers - Shell Corporations - Contractual Transactions.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.


41. Who are the parties involved in a trust?
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
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.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


42. May a shell bank maintain a correspondent account with a US bank?
No.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
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.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.


43. CFT
Countering the Financing of Terrorism (Counter Terrorist Financing).
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.
Money Laundering and Tax Evasion
The US State Dept issues the report annually.


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

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45. UK courts view on 'Suspicion'
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.
www.artloss.com
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
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.


46. What does a 'Commission Rogatoire' normally specify?
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 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.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.


47. FATF Recommendation 8
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.


48. 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)
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.
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.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.


49. FATF Recommendation 4
An electronic quotation system that displays quotes of many securities traded over the counter.
They can accrue value as the price of the underlying stock rises.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.


50. Arrest Warrant
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.
foreign correspondent banks
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.