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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. How is 'Identity theft' often accomplished?
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.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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.

2. Underwriting
that appear to be linked
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.
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 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.

3. What does FIU do beyond what FIU does?

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

5. What the primary objectives of Offshore Group of Banking Supervisors?
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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.

6. FATF Recommendation 15
foreign correspondent banks
Open and Closed system
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.

7. Penny Stocks
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
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.
Middle East and North Africa Financial Action Task Force
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.

8. What do 'Hedge Funds' attempt to do?
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.
Processes transactions for merchants who accept credit cards.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.

9. 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?
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Review customer files and conduct random sampling of accounts.

10. What is the Federal Service for Financial Monitoring?
EurAsian Group
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
The FIU of Russia
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.

11. A 'Cash Letter' can also be referred to as _____.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Pouch activity.

12. Many jurisdictions have legislation to ensure that suspects are not ____?
The FIU of Russia
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
tipped off that they are being investigated.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.

13. Examples of White-collar crime
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.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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).

14. Express Trust
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Confiscation

15. US law prohibhits Foriegn Shell Banks from ____?
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
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
Money Laundering and Tax Evasion
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)

16. FATF Sepcial Recommendation on Terrorist Financing -- SR Three
Freeze and confiscate terrorist assets.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
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.
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.

17. FATF Recommendation 38
Pouch activity.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
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.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.

18. Structuring is a common technique in jurisdictions that...
have in place compulsory currency reporting requirements.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
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.
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.

19. How do most governments view Private Banking?
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.
As a financial institution service that is very vulnerable to money laundering.
The world's largest private DB of stolen art.
Foreign Corrupt Practices Act

20. FATF Recommendation 16
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
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.
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
Review customer files and conduct random sampling of accounts.

21. 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.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
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.

22. 'Kiting' via credit card
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
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.
Stored Value Cards - Mobile Payments - Internet Payments.

23. What do boiler room salespeople typically do?

24. Derivatives
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.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).

25. FATF Recommendation 2
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
that appear to be linked

26. EAG
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
EurAsian Group
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.

27. 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.

28. Apostille

29. Mutual Fund
Reliable - independent source of documents - data or information.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
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]
Stored Value Cards - Mobile Payments - Internet Payments.

30. 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
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.
Canada
Placement - Layering - Integration.

31. The IMF estimates that laundered funds compromise ______ of the world's GDP
2% - 5% ($590B - $1.5T)
It was the first law in any country to make money laundering a crime.
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.
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.

32. The Vienns Convention
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Financial Action Task Force on Money Laundering in South America
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).
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.

33. (Credit Card) Issuing Bank
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.
Solicits potential customers and issues the credit cards.
The US State Dept issues the report annually.
Pouch activity.

34. How is 'Legal Risk' defined by the 2001 Basel Due Diligence Principles?
To reduce financial crime - including money laundering and terrorit financing.
A fund setup by an investment trust in which the number of shares can fluctuate as investors' move in and out the fund. Share prices moves in direct proportion of the net asset value of the underlying investments (no premium or discount).
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
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.

35. Three stages of money laundering
EurAsian Group
Placement - Layering - Integration.
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.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.

36. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
The US State Dept issues the report annually.

37. GAFISUD
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.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Terrorism and Terrorist Financing
Financial Action Task Force on Money Laundering in South America

38. What is the aim of Joint Money Laundering Steering Group? (UK)
have in place compulsory currency reporting requirements.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
No.

39. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
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.
Issue and cancel securities certificates to reflect chagnes in ownership - act as an intermediary for the issuing company - and hanlde lost - stolen or destroyed certificates.

40. FATF Recommendation 37
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
As 'felonies' or 'all offenses in the criminal code'.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
Letters Rogatory

41. What can result from on institution's disregard for the Basel Due Diligence Principle?
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
As a financial institution service that is very vulnerable to money laundering.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.

42. What is the Wolfsberg group?
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
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.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.

43. What is the Serious Organised Crime Agency (SOCA)?
The FIU of the UK
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.

44. FATF Recommendation 10
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.
Freeze and confiscate terrorist assets.
Canada
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data

45. Example of use of an Apostille
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.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.

46. A public perception that a bank is not able to manage its operational risk effectively can...
disrupt or adversely afftect the business of the bank.
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.
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.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.

47. Investigative Log
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
bear the mark 'APOSTILLE'
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.

48. Commodity
Harmful or Preferrential Tax Regimes.
People who help move the billions of dollars drug traffickers earn around the world.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Financial Action Task Force

49. What is the goal of the Egmont group?

50. Affidavit
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
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.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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.