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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. Corporate Bank

2. Futures Commission Merchant (FCM)
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.
Impose AML requirements on alternative remittance systems.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.

3. FATF Sepcial Recommendation on Terrorist Financing -- SR Four
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Report suspicious transactions linked to terrorism.
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
If provided for money laundering to be an internationally extraditable offense.

4. FATF Recommendation 27
2% - 5% ($590B - $1.5T)
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.

5. The Vienns Convention
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].

6. Why is it imperative to have a strong Know Your Employee program?
that appear to be linked
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Banking services between merchant banks and other financial institutions.
Open and Closed system

7. OTC markets Over-The-Counter
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
disrupt or adversely afftect the business of the bank.
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 market is which securities are bought and sold outside of establisehd securities markets.

8. FATF Recommendation 20
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
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 have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.

9. 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.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Placement - Layering - Integration.

10. What does a 'Commission Rogatoire' normally specify?
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.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
a Sr Management level
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.

11. White-Collar crime

12. FATF Recommendation 37
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.

13. Boiler Room
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.
If provided for money laundering to be an internationally extraditable offense.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
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.

14. Cash Letter
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.

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

16. FATF Recommendation 8
Countering the Financing of Terrorism (Counter Terrorist Financing).
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.
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 to any threats from new or developing technologies - especially with non f2f relationships.

17. What was the target of UN Security Council Resolution 1267?
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.

18. What is the goal of FSAP?
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.
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.
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.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.

19. The IMF estimates that laundered funds compromise ______ of the world's GDP
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
2% - 5% ($590B - $1.5T)
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.

20. Money Mules
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
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.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
a chain-referral scheme.

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

22. FATF Recommendation 18
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
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.
Type of foreign bank that is incorporated in the host country but is considered to be owned by a foreign parent bank. It only needs to operarted under the host country's regulations.

23. 'Competent Authorities' refers to _____.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.

24. Abusive Squeezes

25. What is the aim of Joint Money Laundering Steering Group? (UK)
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws

26. Moneyval
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Processes transactions for merchants who accept credit cards.
An account that does not show activity other than the posting of interest or account maintenance fees.

27. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
Futures contracts - forwards - swaps or options.
Stored Value Cards - Mobile Payments - Internet Payments.
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.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.

28. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
As a financial institution service that is very vulnerable to money laundering.

29. FATF Sepcial Recommendation on Terrorist Financing -- SR Eight
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.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.

30. Examples of White-collar crime
Funds transfers - Shell Corporations - Contractual Transactions.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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.

31. Where is the Art Loss Register found?
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
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.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
www.artloss.com

32. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
bear the mark 'APOSTILLE'
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
EurAsian Group
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.

33. What does FIU do beyond what FIU does?

34. How do 'Hedge Funds' operate?

35. What is one of the cental stragetic tools required for effective action against money laundering?
Confiscation
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.
It conducts investigations in support of a government's confiscation or seizure efforts.
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.

36. (Credit card) Acquiring Bank
Processes transactions for merchants who accept credit cards.
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Canada
a chain-referral scheme.

37. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
A market is which securities are bought and sold outside of establisehd securities markets.
Provide mutual legal assistance.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
Strengthen customer identification measures in iternational and domestic wire transfers.

38. What was the target of UN Security Council Resolution 1373?
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Middle East and North Africa Financial Action Task Force
It conducts investigations in support of a government's confiscation or seizure efforts.
Terrorism and Terrorist Financing

39. FATF Recommendation 4
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
A market is which securities are bought and sold outside of establisehd securities markets.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.

40. When was the Offshore Group of Banking Supervisors established? What was the impetus behind its establishment?
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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.

41. Examples of VSP's
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.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.

42. SRO (Self-Regulatory Organizations)
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
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.
The opposing part of a transaction or trade.
Banking services between merchant banks and other financial institutions.

43. Investment Adviser
Person who - for compensation - provides advice on securities and investments and manages client assets.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
The world's largest private DB of stolen art.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.

44. What are some of the AML dangers of casino junkets?
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.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Expatriates sending money back to their home country or by other individuals sending money abroad.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).

45. Fraud
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
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.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.

46. FATF Recommendation 31
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.

47. Bust-out
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
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.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.

48. Basel's 'CDD for Banks' states that the decision to open an account for a PEP should be taken at...
a Sr Management level
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
Money Laundering and Tax Evasion
Real Estate - Insurance Transactions - Trade-Based Money Laundering.

49. Guaranteed Introducing Broker

50. Respondent Bank