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. Basel's 'CDD for Banks' states that the decision to open an account for a PEP should be taken at...
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.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
a Sr Management level


2. 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.
Reliable - independent source of documents - data or information.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.


3. FATF Recommendation 14
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
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.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization


4. 'Commission Rogatoire' known in English as?
Letters Rogatory
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


5. Derivatives
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.
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.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.


6. 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


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

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


8. FATF Recommendation 26
Impose AML requirements on alternative remittance systems.
If provided for money laundering to be an internationally extraditable offense.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Reliable - independent source of documents - data or information.


9. Convertible Preferred
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
Pouch activity.
Impose AML requirements on alternative remittance systems.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


10. What are the three main functions of a 'Transfer Agent'?
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
If provided for money laundering to be an internationally extraditable offense.
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.
Intergovernmental Action Group against Money Laundering in Africa


11. Fraud
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
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.


12. In general terms - EDD requires what of a financial institution?

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


13. Moneyval
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.
The US State Dept issues the report annually.
They can accrue value as the price of the underlying stock rises.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism


14. Apostille

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


15. OCC Office of the Comptroller of the Currency
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
Solicits potential customers and issues the credit cards.


16. What is the Serious Organised Crime Agency (SOCA)?
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
The FIU of the UK
Contract issued by an insurance company under which an investor provides the insurer with funds (a lump-sum or series of payments). The insurer then agrees to make periodic payments to the investor starting the immediately or in the future.
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.


17. Dormant Account
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.
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).
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
An account that does not show activity other than the posting of interest or account maintenance fees.


18. What do boiler room salespeople typically sell?
Competent authorities should have powers of subpoena - search and seizure.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
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.


19. FATF's designated transactional threshold for Financial Insitutions is _____.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.


20. FATF Recommendation 36
Provide mutual legal assistance.
Letters Rogatory
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.
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 theInternationa Narcotics Control Strategy Report (INCSR) entail?
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.
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.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.


22. Dematerialization of Securities

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


23. FATF Recommendation 17
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Open and Closed system
Terrorism and Terrorist Financing
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.


24. FATF Recommendation 3
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Canada
A US Federal Court
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.


25. Why is 'Know Your Correspondent Bank' important?
The FIU of Russia
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.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).


26. Why is understanding 'Product Diversion' important to the AML investigator?
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
They can accrue value as the price of the underlying stock rises.
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.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.


27. Examples of White-collar crime
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.
Corporate bond that includes an option for the holder to convert it into other securities after a specified period at the discretion of the bondholder.
Foreign Corrupt Practices Act
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


28. Portfolio Manager
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.
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.
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.
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.


29. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
Stored Value Cards - Mobile Payments - Internet Payments.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Impose AML requirements on alternative remittance systems.


30. 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...
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
foreign correspondent banks
Strengthen customer identification measures in iternational and domestic wire transfers.
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.


31. Respondent Bank

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


32. FATF Recommendation 19
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.


33. 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]
Expatriates sending money back to their home country or by other individuals sending money abroad.
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.


34. White-Collar crime

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


35. FATF Recommendation 5
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.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
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.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.


36. What does FIU do?
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
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.
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.
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.


37. 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.
People who help move the billions of dollars drug traffickers earn around the world.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
The International Monetary Fund (IMF) and the world bank conduct the joint program.


38. Transparency International
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.
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.
that appear to be linked


39. What is the goal of FSAP?
tipped off that they are being investigated.
Banking services between merchant banks and other financial institutions.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.


40. How are 'Predicate Crimes' sometimes identified?

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


41. What is the goal of the Egmont group?

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


42. FATF Recommendation 37
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
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.
Pouch activity.


43. Investment Adviser
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.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
Provide mutual legal assistance.
Person who - for compensation - provides advice on securities and investments and manages client assets.


44. Why do companies export their goods at prices far below those in their home country?
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Futures contracts - forwards - swaps or options.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).


45. (Credit Card) Issuing Bank
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
Solicits potential customers and issues the credit cards.


46. Identification data
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Reliable - independent source of documents - data or information.
Confiscation
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.


47. How do most governments view Private Banking?
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.
As a financial institution service that is very vulnerable to money laundering.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].


48. Many jurisdictions have legislation to ensure that suspects are not ____?
The FIU of the UK
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.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
tipped off that they are being investigated.


49. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
An electronic quotation system that displays quotes of many securities traded over the counter.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
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.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


50. Cash Letter
have in place compulsory currency reporting requirements.
Firm or person that solicits and accepts commodity futures orders from customers but does not accept funds. Two types of IB_C's: Guaranteed and Independent.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Solicits potential customers and issues the credit cards.