Test your basic knowledge |

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. Moneyval
bear the mark 'APOSTILLE'
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.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
tipped off that they are being investigated.

2. What can result from on institution's disregard for the Basel Due Diligence Principle?
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.

3. Respondent Bank

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

4. What is a Financial Intelligence Unit?
It conducts investigations in support of a government's confiscation or seizure efforts.
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.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
disrupt or adversely afftect the business of the bank.

5. What was the target of UN Security Council Resolution 1373?
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Reliable - independent source of documents - data or information.
Terrorism and Terrorist Financing
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.

6. Penny Stocks
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
Letters Rogatory
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.

7. FATF Recommendation 21
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Reliable - independent source of documents - data or information.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.

8. FATF Recommendation 31
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Banking services between merchant banks and other financial institutions.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
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

9. Wholesale Banking
Penny Stocks
A market is which securities are bought and sold outside of establisehd securities markets.
Banking services between merchant banks and other financial institutions.
Solicits potential customers and issues the credit cards.

10. How is 'Legal Risk' defined by the 2001 Basel Due Diligence Principles?
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.
Person who - for compensation - provides advice on securities and investments and manages client assets.
EurAsian Group
bear the mark 'APOSTILLE'

11. What do boiler room salespeople typically sell?
Penny Stocks
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 corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.

12. FATF
a chain-referral scheme.
Financial Action Task Force
No.
disrupt or adversely afftect the business of the bank.

13. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Intergovernmental Action Group against Money Laundering in Africa
Impose AML requirements on alternative remittance systems.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.

14. Structuring is a common technique in jurisdictions that...
have in place compulsory currency reporting requirements.
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.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.

15. Retail Banking
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'
EurAsian Group
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Typical mass-market banking where individual customers use local branches of larger commercial banks.

16. Options/Options Contract
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 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.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.

17. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
The US State Dept issues the report annually.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
To reduce financial crime - including money laundering and terrorit financing.

18. What is a 'NCCT'?
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.

19. FATF Sepcial Recommendation on Terrorist Financing -- SR Three
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Freeze and confiscate terrorist assets.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Countering the Financing of Terrorism (Counter Terrorist Financing).

20. What does Financial Sector AssessmentProgram (FSAP) do?
www.artloss.com
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.
Placement - Layering - Integration.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.

21. What does an Extradition Treaty specify?
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.
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.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.

22. FATF Recommendation 17
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
disrupt or adversely afftect the business of the bank.
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.

23. FATF Recommendation 2
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
Funds transfers - Shell Corporations - Contractual Transactions.

24. Transparency International
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
a chain-referral scheme.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Countering the Financing of Terrorism (Counter Terrorist Financing).

25. FATF Recommendation 37
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.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
The US State Dept issues the report annually.

26. The Vienns Convention
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
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.
Typical mass-market banking where individual customers use local branches of larger commercial banks.

27. FATF Recommendation 28
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
Solicits potential customers and issues the credit cards.
Competent authorities should have powers of subpoena - search and seizure.
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.

28. FATF Recommendation 7

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

29. 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?
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.
a Sr Management level
Review customer files and conduct random sampling of accounts.
Competent authorities should have powers of subpoena - search and seizure.

30. Dematerialization of Securities

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

31. Why is 'refining' critical to a money launderer's efforts?
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.

32. 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.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
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).

33. Derivatives
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
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.

34. FATF Recommendation 10
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.

35. Fraud
As a financial institution service that is very vulnerable to money laundering.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
bear the mark 'APOSTILLE'
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.

36. FATF Recommendation 5
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.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.

37. Downstream Correspondent Clearer
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.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
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.
Expatriates sending money back to their home country or by other individuals sending money abroad.

38. What is the aim of Joint Money Laundering Steering Group? (UK)
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Intergovernmental Action Group against Money Laundering in Africa
Financial Action Task Force on Money Laundering in South America
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.

39. FATF Recommendations examples of non-financial businesses and professions
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
Processes transactions for merchants who accept credit cards.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).

40. What is one of the cental stragetic tools required for effective action against money laundering?
tipped off that they are being investigated.
A US Federal Court
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Confiscation

41. FATF Recommendation 26
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
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'
To reduce financial crime - including money laundering and terrorit financing.
bear the mark 'APOSTILLE'

42. Vital Service Providers (VSPs)
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.
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.
People who help move the billions of dollars drug traffickers earn around the world.
The International Monetary Fund (IMF) and the world bank conduct the joint program.

43. FATF Recommendation 9
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
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
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.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.

44. Commodity Trading Advisor
Direct or indirect advisor on buying and selling futures or commodity options.
Person who - for compensation - provides advice on securities and investments and manages client assets.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
have in place compulsory currency reporting requirements.

45. FATF Recommendation 39
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
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 criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Countries should recognize money laundering as an extraditable offense.

46. What the primary objectives of Offshore Group of Banking Supervisors?
Countries should recognize money laundering as an extraditable offense.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
They can accrue value as the price of the underlying stock rises.
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.

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

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

48. FATF Recommendation 18
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
Banking services between merchant banks and other financial institutions.
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.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.

49. US law prohibhits Foriegn Shell Banks from ____?
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
have in place compulsory currency reporting requirements.
The opposing part of a transaction or trade.

50. Why does a launderer try to run transactions through a concentration account of a financial institution?
A US Federal Court
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.