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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. Free Look Period
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
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
Stored Value Cards - Mobile Payments - Internet Payments.

2. FATF Recommendation 30
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Confiscation
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.

3. Fraud
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Penny Stocks
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Typical mass-market banking where individual customers use local branches of larger commercial banks.

4. FATF Recommendation 24
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
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.
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.
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

5. 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.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Futures contracts - forwards - swaps or options.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.

6. How are 'Predicate Crimes' sometimes identified?

7. Cash Letter
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Report suspicious transactions linked to terrorism.

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

9. Commodity Pool Operator
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.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Reliable - independent source of documents - data or information.
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.

10. Commodity
Penny Stocks
Confiscation
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.

11. What is a 'Trust'?
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.
The world's largest private DB of stolen art.
Terrorism and Terrorist Financing
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]

12. Portfolio Manager
Banking services between merchant banks and other financial institutions.
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.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
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.

13. Convertible Preferred
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
bear the mark 'APOSTILLE'

14. Abusive Squeezes

15. How does 'Product Diversion' work?
Product is purchsed with terms that it is going to foreign country A. While in transit - the product is diverted back to originating country or to another foreign market where the greatly discounted price provides for extreme profits.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Futures contracts - forwards - swaps or options.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.

16. FATF Sepcial Recommendation on Terrorist Financing -- SR Four
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Report suspicious transactions linked to terrorism.
They can accrue value as the price of the underlying stock rises.

17. Open System Stored Value Card
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.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.

18. 'Open-end Mutual Fund' (or Company)

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

20. Futures Commission Merchant (FCM)
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.

21. Variable Annuity
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
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.
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.
Countering the Financing of Terrorism (Counter Terrorist Financing).

22. What does Financial Sector AssessmentProgram (FSAP) do?
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Expatriates sending money back to their home country or by other individuals sending money abroad.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.

23. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
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.
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.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.

24. FATF Recommendation 17
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
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.
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).

25. FATF Recommendation 13
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Freeze and confiscate terrorist assets.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.

26. FATF Recommendation 20
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
Person who - for compensation - provides advice on securities and investments and manages client assets.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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.

27. What must a financial institution do if they have 'Exempt Accounts'?
Funds transfers - Shell Corporations - Contractual Transactions.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.

28. What does FIU do?
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
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.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.

29. Under the US Bank Secrecy Act - SAR filings are confidential and the institutions employees cannot ____?

30. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Futures contracts - forwards - swaps or options.
If provided for money laundering to be an internationally extraditable offense.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.

31. Cash Log

32. 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?
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.
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.
Review customer files and conduct random sampling of accounts.
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.

33. Options/Options Contract
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
It was the first law in any country to make money laundering a crime.
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.
A bank which uses the services of another bank - such as check clearing - wire transfers - etc. The bank providing the service is the 'Correspondent Bank'

34. Short Sale

35. Underwriting
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.
tipped off that they are being investigated.
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.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.

36. A notary can issue a Apostille but it must be in a country that signed The Hague Convention (1961) and it must ___________. If the notary doesn't understand - find another one.

37. UK courts view on 'Suspicion'
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
that appear to be linked
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.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.

38. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
A bank which uses the services of another bank - such as check clearing - wire transfers - etc. The bank providing the service is the 'Correspondent Bank'

39. Who appoints a 'Federal Receiver' (US)?
A US Federal Court
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
The process of agreeing to purchase a new issue of securities from an issuer and distribute it to investors. The underwriter makes a profit between the price paid to the issuer and the public offering price.
A 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.

40. Who appear to be predominant users of hawalas and other alternative remittance systems?
have in place compulsory currency reporting requirements.
Expatriates sending money back to their home country or by other individuals sending money abroad.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.

41. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
The US State Dept issues the report annually.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
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.
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.

42. Penny Stocks
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
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.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.

43. Moneyval
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
no regulatory power or function
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.

44. FATF Recommendation 35
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.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.

45. FATF Recommendation 18
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.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.

46. 'Commission Rogatoire' known in English as?
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.
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.
Letters Rogatory
Confiscation

47. Transparency International
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.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.

48. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
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.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
Impose AML requirements on alternative remittance systems.
foreign correspondent banks

49. FATF Recommendation 36
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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
Provide mutual legal assistance.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.

50. What is private investment company also known as?
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.
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.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.