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. (Credit card) Acquiring Bank
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Processes transactions for merchants who accept credit cards.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
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.


2. Who appear to be predominant users of hawalas and other alternative remittance systems?
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
As a financial institution service that is very vulnerable to money laundering.
Expatriates sending money back to their home country or by other individuals sending money abroad.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.


3. FATF Recommendation 39
Countries should recognize money laundering as an extraditable offense.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Banking services between merchant banks and other financial institutions.


4. (Credit Card) Issuing Bank
Solicits potential customers and issues the credit cards.
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
If provided for money laundering to be an internationally extraditable offense.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.


5. Who appoints a 'Federal Receiver' (US)?
a Sr Management level
A US Federal Court
Person who - for compensation - provides advice on securities and investments and manages client assets.
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).


6. Characteristics of an 'Open System Stored Value Card'
Freeze and confiscate terrorist assets.
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.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
disrupt or adversely afftect the business of the bank.


7. What does Financial Sector AssessmentProgram (FSAP) do?
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.
Reliable - independent source of documents - data or information.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


8. Should one ever file a Suspicious Transaction Report (STR/SAR) based on a person's profile?

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9. Cash Letter
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
As 'felonies' or 'all offenses in the criminal code'.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.


10. Convertible Preferred
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
They can accrue value as the price of the underlying stock rises.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


11. Why do companies export their goods at prices far below those in their home country?
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
foreign correspondent banks
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.


12. Why is 'Know Your Customer's Customer' important?
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.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
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.


13. Behaviour detection

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14. Operational risks in KYC context relate to...
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Pouch activity.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
a chain-referral scheme.


15. Commodity Pool
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Direct or indirect advisor on buying and selling futures or commodity options.
Combines funds from various members and users them to trade in futures or options contracts.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].


16. EAG
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
EurAsian Group
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.


17. Dormant Account
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
The world's largest private DB of stolen art.
An account that does not show activity other than the posting of interest or account maintenance fees.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.


18. In general terms - EDD requires what of a financial institution?

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19. USA Patriot Act Section 312 'Offshore Bank'
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
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.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
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.


20. The Vienns Convention
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
To reduce financial crime - including money laundering and terrorit financing.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
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.


21. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Strengthen customer identification measures in iternational and domestic wire transfers.
tipped off that they are being investigated.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.


22. Fraud
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Direct or indirect advisor on buying and selling futures or commodity options.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.


23. FATF Recommendation 28
Competent authorities should have powers of subpoena - search and seizure.
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.
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.
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.


24. 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.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


25. What is the aim of Joint Money Laundering Steering Group? (UK)
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).


26. What is a 'NCCT'?
An electronic quotation system that displays quotes of many securities traded over the counter.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws


27. As considered by UN and OECD - these are jurisdictions that have no or low tax rates - and do not attract real business or foreign investment
Combines funds from various members and users them to trade in futures or options contracts.
that appear to be linked
Countering the Financing of Terrorism (Counter Terrorist Financing).
Harmful or Preferrential Tax Regimes.


28. Basel's 'CDD for Banks' states that the decision to open an account for a PEP should be taken at...
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
a Sr Management level


29. FATF Recommendation 25
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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.


30. A 'panzi' scheme is named for whom?
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.
foreign correspondent banks
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
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.


31. FATF Recommendation 13
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.
The world's largest private DB of stolen art.
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.


32. FATF's designated transactional threshold for Casinos (including Internet Casinos) is _____.
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
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
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.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


33. 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...
They can accrue value as the price of the underlying stock rises.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
foreign correspondent banks
no regulatory power or function


34. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
Terrorism and Terrorist Financing
Solicits potential customers and issues the credit cards.
Stored Value Cards - Mobile Payments - Internet Payments.
Confiscation


35. Open System Stored Value Card
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Futures contracts - forwards - swaps or options.
Provide mutual legal assistance.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.


36. Money Mules
Countering the Financing of Terrorism (Counter Terrorist Financing).
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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.


37. Convertible Bond
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
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.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Corporate bond that includes an option for the holder to convert it into other securities after a specified period at the discretion of the bondholder.


38. FATF Recommendation 1
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.


39. FATF Recommendation 18
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.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
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.


40. Express Trust
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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.
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.


41. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.


42. What is the Serious Organised Crime Agency (SOCA)?
have in place compulsory currency reporting requirements.
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.
Futures contracts - forwards - swaps or options.
The FIU of the UK


43. FCPA (US)
Solicits potential customers and issues the credit cards.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Impose AML requirements on alternative remittance systems.
Foreign Corrupt Practices Act


44. OTC markets Over-The-Counter
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
No.
A market is which securities are bought and sold outside of establisehd securities markets.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization


45. FATF Recommendation 19
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
The FIU of Russia
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
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).


46. Basel committee's 'Customer Due Diligence for Banks' when verifying a unit's compliance with KYC policies and procedures - the home country supervisors or auditors should do what?
Processes transactions for merchants who accept credit cards.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Review customer files and conduct random sampling of accounts.


47. How does 'Product Diversion' work?
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
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.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
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.


48. FATF Recommendation 7

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49. FATF Recommendation 27
Provide mutual legal assistance.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Money Laundering and Tax Evasion
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


50. What do boiler room salespeople typically do?

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