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. Downstream Correspondent Clearer
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.
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.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
bear the mark 'APOSTILLE'


2. FATF Recommendation 32
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
bear the mark 'APOSTILLE'
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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


3. FATF Recommendation 24
Stored Value Cards - Mobile Payments - Internet Payments.
bear the mark 'APOSTILLE'
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Competent authorities should have powers of subpoena - search and seizure.


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

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


5. What are the two types of Stored Value Cards?
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Impose AML requirements on alternative remittance systems.
Open and Closed system


6. FATF
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Financial Action Task Force
2% - 5% ($590B - $1.5T)
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.


7. What is the Federal Service for Financial Monitoring?
Middle East and North Africa Financial Action Task Force
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
The FIU of Russia
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.


8. Derivatives
Pouch activity.
A US Federal Court
have in place compulsory currency reporting requirements.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.


9. What was the effect of the 1988 Vienna Convention as it relates to extradtition?
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
If provided for money laundering to be an internationally extraditable offense.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
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.


10. What is the goal of FSAP?
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
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.
Futures contracts - forwards - swaps or options.


11. What is a Financial Intelligence Unit?
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.


12. The Vienns Convention
As a financial institution service that is very vulnerable to money laundering.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
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
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].


13. 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
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.
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.
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.


14. Penny Stocks
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
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.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.


15. Dematerialization of Securities

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


16. FATF Recommendation 40
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 establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
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).


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

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


18. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
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.
Strengthen customer identification measures in iternational and domestic wire transfers.
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.
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.


19. How do 'Hedge Funds' operate?

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


20. What is one of the Financial Service Authority's (UK) tasks?
Open and Closed system
To reduce financial crime - including money laundering and terrorit financing.
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.
While it is normally known as a Personal Investment Company (PIC) - in some jurisdictions - the international business company or exempt company is also the same.


21. FATF's designated transactional threshold for Casinos (including Internet Casinos) is _____.
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.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


22. Portfolio Manager
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.
that appear to be linked
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.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.


23. What is a 'NCCT'?
bear the mark 'APOSTILLE'
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
The means through which the insurance products and services are provided to a customer [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 09]
Harmful or Preferrential Tax Regimes.


24. FATF Recommendation 34
The FIU of the UK
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.
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).
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.


25. Who appoints a 'Federal Receiver' (US)?
EurAsian Group
A US Federal Court
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.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.


26. Characteristics of an 'Open System Stored Value Card'
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
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.
Reliable - independent source of documents - data or information.


27. Express Trust
Direct or indirect advisor on buying and selling futures or commodity options.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
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.
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.


28. How does 'Product Diversion' work?
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.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
It was the first law in any country to make money laundering a crime.
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.


29. 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.
No.
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.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


30. FATF Recommendation 4
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.
Solicits potential customers and issues the credit cards.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.


31. Guaranteed Introducing Broker

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


32. Examples of White-collar crime
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.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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]


33. Commodity Trading Advisor
Direct or indirect advisor on buying and selling futures or commodity options.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Countries should recognize money laundering as an extraditable offense.


34. Scheme
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.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
To reduce financial crime - including money laundering and terrorit financing.
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.


35. FATF Recommendation 7

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


36. Behaviour detection

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


37. What do 'Hedge Funds' attempt to do?
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
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.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.


38. How are 'Predicate Crimes' sometimes identified?

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


39. FCPA (US)
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
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.
Foreign Corrupt Practices Act


40. FATF Recommendation 9
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 may rely upon intermediaries to perform certain CDD elements provided the intermediary is supervised and regulated. However - ultimate responsibility remains with the financial institution.
Middle East and North Africa Financial Action Task Force
Person who - for compensation - provides advice on securities and investments and manages client assets.


41. Abusive Squeezes

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


42. EAG
EurAsian Group
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
Confiscation


43. How is 'Identity theft' often accomplished?
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Futures contracts - forwards - swaps or options.


44. FATF's designated transactional threshold for Financial Insitutions is _____.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Placement - Layering - Integration.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.


45. FATF Recommendation 23
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.
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.
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).
Foreign Corrupt Practices Act


46. What must a financial institution do if they have 'Exempt Accounts'?
Strengthen customer identification measures in iternational and domestic wire transfers.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
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).
Reliable - independent source of documents - data or information.


47. 'Kiting' via credit card
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
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.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
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.


48. Corporate Bank

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


49. FATF Recommendation 36
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
foreign correspondent banks
Provide mutual legal assistance.


50. Structuring is a common technique in jurisdictions that...
Stored Value Cards - Mobile Payments - Internet Payments.
Take immediate steps to ratify and implement the UN instruments.
have in place compulsory currency reporting requirements.
Expatriates sending money back to their home country or by other individuals sending money abroad.