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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. What is the goal of FSAP?
FATF principles should apply to all branches and subsidiaries of a financial institution - even those abroad. Inability to do should re reported to parent institution's regulatory/supervisory authority.
Competent authorities should have powers of subpoena - search and seizure.
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.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.

2. FATF Recommendation 31
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.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.

3. FATF Recommendation 25
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
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).
No.

4. Automated Sale
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.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Countries should recognize money laundering as an extraditable offense.

5. What is the primary use of a 'Mutual Legal Assistance Treaty'?
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
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.
Middle East and North Africa Financial Action Task Force

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

7. Corporate Bank

8. Investigative Log
They can accrue value as the price of the underlying stock rises.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
The world's largest private DB of stolen art.

9. FATF Recommendation 26
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Harmful or Preferrential Tax Regimes.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
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.

10. Why is 'Know Your Customer's Customer' important?
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Freeze and confiscate terrorist assets.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.

11. Many jurisdictions have legislation to ensure that suspects are not ____?
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Stored Value Cards - Mobile Payments - Internet Payments.
www.artloss.com
tipped off that they are being investigated.

12. FATF Recommendation 4
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
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.
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]

13. FATF Recommendation 3
a chain-referral scheme.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
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
Money Laundering and Tax Evasion

14. How do 'Hedge Funds' operate?

15. How is 'Identity theft' often accomplished?
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.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
www.artloss.com
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.

16. FATF Recommendation 37
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Report suspicious transactions linked to terrorism.

17. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
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

18. Common types of 'Derivatives'
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
Banking services between merchant banks and other financial institutions.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Futures contracts - forwards - swaps or options.

19. (Credit Card) Third-Party processor
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.

20. What is private investment company also known as?
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
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. What is the aim of Joint Money Laundering Steering Group? (UK)
Provide mutual legal assistance.
An account that does not show activity other than the posting of interest or account maintenance fees.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.

22. FATF Recommendation 17
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.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Open and Closed system

23. A pyramid scheme is also called...
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.
Penny Stocks
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.
a chain-referral scheme.

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

25. FATF's designated transactional threshold for Financial Insitutions is _____.
Countering the Financing of Terrorism (Counter Terrorist Financing).
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
The FIU of the UK
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.

26. What was the target of UN Security Council Resolution 1373?
Expanding/Systemising the exchange of financial intelligence - improving expertise/capabilities of their personnel - fostering better communication by applying new technologies and sharing financial crimes investigations information.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Terrorism and Terrorist Financing
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.

27. Cash Equivalent

28. Why is understanding 'Product Diversion' important to the AML investigator?
Expatriates sending money back to their home country or by other individuals sending money abroad.
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.
An introducing broker-dealer with an exclusive written agreement with a Futures Commission Merchant (FCM) that obligates the FCM to assume responsibility for the introducing broker's performance.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.

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

30. FATF Recommendation 5
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Solicits potential customers and issues the credit cards.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.

31. Short Sale

32. 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.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
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.

33. Legal Arrangements (Insurance Industry)
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.
Canada
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
Refers to express trusts or other similar legal arrangements - such as fiducie - treuhand and fideicomiso [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 09]

34. What is the Serious Organised Crime Agency (SOCA)?
The FIU of the UK
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 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 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)

35. What is a 'NCCT'?
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
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.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
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.

36. Credit Card Associations
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Direct or indirect advisor on buying and selling futures or commodity options.
Terrorism and Terrorist Financing
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.

37. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
Banking services between merchant banks and other financial institutions.
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
Person who - for compensation - provides advice on securities and investments and manages client assets.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)

38. GIABA
Intergovernmental Action Group against Money Laundering in Africa
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Direct or indirect advisor on buying and selling futures or commodity options.
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.

39. OTC markets Over-The-Counter
A market is which securities are bought and sold outside of establisehd securities markets.
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.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
The opposing part of a transaction or trade.

40. What is the Wolfsberg group?
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
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.
a chain-referral scheme.
The International Monetary Fund (IMF) and the world bank conduct the joint program.

41. FATF Recommendation 27
Expanding/Systemising the exchange of financial intelligence - improving expertise/capabilities of their personnel - fostering better communication by applying new technologies and sharing financial crimes investigations information.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
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.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).

42. Behaviour detection

43. How is 'Legal Risk' defined by the 2001 Basel Due Diligence Principles?
Competent authorities should have powers of subpoena - search and seizure.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
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.

44. May a shell bank maintain a correspondent account with a US bank?
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
No.
It was the first law in any country to make money laundering a crime.
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'.

45. Nostro

46. Identification data
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
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.
bear the mark 'APOSTILLE'
Reliable - independent source of documents - data or information.

47. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
bear the mark 'APOSTILLE'

48. Wholesale Banking
Banking services between merchant banks and other financial institutions.
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
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.

49. Account Monitoring Order (UK and several other countries)
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.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Expanding/Systemising the exchange of financial intelligence - improving expertise/capabilities of their personnel - fostering better communication by applying new technologies and sharing financial crimes investigations information.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data

50. Moneyval
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism