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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. FATF Recommendation 31
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.

2. Examples of VSP's
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
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.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws

3. FATF Recommendation 29
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)

4. Structuring is a common technique in jurisdictions that...
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
have in place compulsory currency reporting requirements.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.

5. USA Patriot Act Section 312 'Offshore Bank'
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.
foreign correspondent banks
Canada
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.

6. FATF Recommendation 4
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.
www.artloss.com
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.

7. FATF Recommendation 37
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
The FIU of Russia
Refers to express trusts or other similar legal arrangements - such as fiducie - treuhand and fideicomiso [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 09]
The world's largest private DB of stolen art.

8. (Credit card) Acquiring Bank
Processes transactions for merchants who accept credit cards.
It was the first law in any country to make money laundering a crime.
The sale of a stock that the investor does not own. To do so - a securities intermediary 'loans' the stock to the investor - which comes from the intermediary's own inventory - another client's margin account or another intermediary.
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.

9. What criterion does the US need to enforce its 'Extraterritorial Reach'?

10. 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.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Take immediate steps to ratify and implement the UN instruments.

11. Where is the Art Loss Register found?
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
tipped off that they are being investigated.
www.artloss.com
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.

12. Dormant Account
Placement - Layering - Integration.
An account that does not show activity other than the posting of interest or account maintenance fees.
The FIU of Russia
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).

13. Futures Commission Merchant (FCM)
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.

14. What is meant by 'Know Your Customer's customer'?
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.

15. What is important about the US Money Laundering Control Act (MCLA)?
a Sr Management level
It was the first law in any country to make money laundering a crime.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Foreign Corrupt Practices Act

16. What do boiler room salespeople typically sell?
Penny Stocks
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.
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'
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)

17. What are the two types of Stored Value Cards?
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Open and Closed system
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.
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.

18. Market Manipulation
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.
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 market is which securities are bought and sold outside of establisehd securities markets.
Typical mass-market banking where individual customers use local branches of larger commercial banks.

19. OTC markets Over-The-Counter
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
They can accrue value as the price of the underlying stock rises.
A market is which securities are bought and sold outside of establisehd securities markets.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.

20. What the primary objectives of Offshore Group of Banking Supervisors?
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.
Penny Stocks
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.

21. 'Commission Rogatoire' known in English as?
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Letters Rogatory

22. May a shell bank maintain a correspondent account with a US bank?
No.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
The International Monetary Fund (IMF) and the world bank conduct the joint program.
no regulatory power or function

23. What is one of the cental stragetic tools required for effective action against money laundering?
Take immediate steps to ratify and implement the UN instruments.
Competent authorities should have powers of subpoena - search and seizure.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Confiscation

24. Short Sale

25. FATF Recommendation 3
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
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.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.

26. Distribution Channels (Insurance Industry)
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]
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Placement - Layering - Integration.

27. Why do convertible bonds oftern have lower interest rates than non-convertible bonds?
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.
that appear to be linked
To reduce financial crime - including money laundering and terrorit financing.
They can accrue value as the price of the underlying stock rises.

28. FATF Recommendation 28
Competent authorities should have powers of subpoena - search and seizure.
Take immediate steps to ratify and implement the UN instruments.
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 Action Task Force on Money Laundering in South America

29. Commodity Pool
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.
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.
Combines funds from various members and users them to trade in futures or options contracts.
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. FATF Recommendation 16
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.
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.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.

31. Example of use of an Apostille
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
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.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.

32. FATF Recommendation 11
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
They can accrue value as the price of the underlying stock rises.
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.
A market is which securities are bought and sold outside of establisehd securities markets.

33. Credit Card Associations
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
To reduce financial crime - including money laundering and terrorit financing.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.

34. Commodity Trading Advisor
tipped off that they are being investigated.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Direct or indirect advisor on buying and selling futures or commodity options.

35. FATF Recommendation 15
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.

36. FATF Recommendation 9
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Countries should recognize money laundering as an extraditable offense.
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.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.

37. What were recently identified as Emerging Money Laundering risks?
Funds transfers - Shell Corporations - Contractual Transactions.
No.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.

38. Nostro

39. Penny Stocks
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
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.
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.
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.

40. MENAFATF
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
Middle East and North Africa Financial Action Task Force
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.

41. What are included in the Wolfsberg AML Principles on Private Banking?
tipped off that they are being investigated.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.

42. What must a financial institution do if they have 'Exempt Accounts'?
The opposing part of a transaction or trade.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
If provided for money laundering to be an internationally extraditable offense.
disrupt or adversely afftect the business of the bank.

43. Affidavit
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'
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.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.

44. Margin
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.

45. FATF Recommendation 40
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
The FIU of the UK
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
The US State Dept issues the report annually.

46. GAFISUD
no regulatory power or function
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Financial Action Task Force on Money Laundering in South America

47. Dematerialization of Securities

48. FATF Recommendation 39
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.
Countries should recognize money laundering as an extraditable offense.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.

49. FATF Recommendation 2
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
As 'felonies' or 'all offenses in the criminal code'.

50. FATF Recommendation 14
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
disrupt or adversely afftect the business of the bank.
The sale of a stock that the investor does not own. To do so - a securities intermediary 'loans' the stock to the investor - which comes from the intermediary's own inventory - another client's margin account or another intermediary.