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

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


2. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
Harmful or Preferrential Tax Regimes.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.


3. Express Trust
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
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
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
The FIU of Russia


4. FATF Recommendation 28
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
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.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Competent authorities should have powers of subpoena - search and seizure.


5. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
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.


6. Convertible Preferred
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
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.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.


7. FATF Sepcial Recommendation on Terrorist Financing -- SR Three
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Freeze and confiscate terrorist assets.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.


8. Who appoints a 'Federal Receiver' (US)?
Processes transactions for merchants who accept credit cards.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
A US Federal Court
Typical mass-market banking where individual customers use local branches of larger commercial banks.


9. A 'panzi' scheme is named for whom?
Countries should recognize money laundering as an extraditable offense.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Charles Ponzi - an Italian immigrant to the US who spent 10 years in jail for a scheme that defrauded 40 -000 people out of $15 million.
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.


10. What is a 'NCCT'?
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
Competent authorities should have powers of subpoena - search and seizure.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
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.


11. FATF's designated transactional threshold for Casinos (including Internet Casinos) is _____.
As 'felonies' or 'all offenses in the criminal code'.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


12. FATF Recommendation 31
To reduce financial crime - including money laundering and terrorit financing.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
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.
Open and Closed system


13. Margin
Financial Action Task Force
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.


14. What is important about the US Money Laundering Control Act (MCLA)?
It was the first law in any country to make money laundering a crime.
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.
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.
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.


15. FATF Recommendation 35
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.


16. FATF Recommendation 22

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


17. Three stages of money laundering
Placement - Layering - Integration.
Intergovernmental Action Group against Money Laundering in Africa
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.


18. What is a Private Investment company (PIC)?
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
People who help move the billions of dollars drug traffickers earn around the world.
Processes transactions for merchants who accept credit cards.


19. Boiler Room
Futures contracts - forwards - swaps or options.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
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.
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.


20. What does FIU do beyond what FIU does?

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


21. 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.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Funds transfers - Shell Corporations - Contractual Transactions.


22. EAG
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
EurAsian Group
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
The FIU of the UK


23. The Palemo Convention
2% - 5% ($590B - $1.5T)
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Countering the Financing of Terrorism (Counter Terrorist Financing).


24. 'Loan Back' method. Give example of how it works.

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


25. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
It one wants to open a bank account overseas - but do it through the mail - the bank may need to be assured that the copy of the passport is correct. The Apostille mark can assure this.
A 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.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.


26. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
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.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).


27. What is the primary use of a 'Mutual Legal Assistance Treaty'?
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Letters Rogatory


28. FATF Recommendation 15
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
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.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
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.


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

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


30. FATF Recommendation 30
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).
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.


31. Apostille

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


32. What were recently identified as Emerging Money Laundering risks?
Funds transfers - Shell Corporations - Contractual Transactions.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


33. Reverse Flip

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


34. The USA Patriot Act enacted a number of statutory provisions that bear directly on the procedures US financial institutions must follow in connection with their...
The FIU of Russia
foreign correspondent banks
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.


35. In what country is the Egmont Group Secretariat now located?
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Canada
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.


36. FATF Recommendation 5
www.artloss.com
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.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.


37. Corporate Bank

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


38. Why is 'Know Your Customer's Customer' important?
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Financial Action Task Force on Money Laundering in South America
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.


39. Commodity Pool
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
Combines funds from various members and users them to trade in futures or options contracts.


40. What does the 'SEC' (US Securities and Exchange Commission) do?
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.
Stored Value Cards - Mobile Payments - Internet Payments.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.


41. Example of use of an Apostille
Account established by a domestic banking institution to receive deposits from - make payments on behalf of - or handle other financial transactions for a foreign financial institution - usually in the foreign financial institutions's cureency.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
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.
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.


42. 'Competent Authorities' refers to _____.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
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.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
www.artloss.com


43. What does FIU do?
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.


44. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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.
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.


45. What is the aim of Joint Money Laundering Steering Group? (UK)
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.
Product is purchsed with terms that it is going to foreign country A. While in transit - the product is diverted back to originating country or to another foreign market where the greatly discounted price provides for extreme profits.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.


46. FATF Recommendation 34
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
They can accrue value as the price of the underlying stock rises.
The US State Dept issues the report annually.
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.


47. FATF Recommendation 18
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Direct money of Criminal A is sent to foreign bank account of company B. Investment company C is formed as A's country. A is appointed as director of C. C borrows money from B and buys building which is rented to 3rd parties. with rent - C pays off B
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.
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.


48. A 'Cash Letter' can also be referred to as _____.
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.
Pouch activity.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Freeze and confiscate terrorist assets.


49. FATF Recommendation 25
An electronic quotation system that displays quotes of many securities traded over the counter.
Account established by a domestic banking institution to receive deposits from - make payments on behalf of - or handle other financial transactions for a foreign financial institution - usually in the foreign financial institutions's cureency.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
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.


50. (Stock) Warrants
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
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.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Countering the Financing of Terrorism (Counter Terrorist Financing).