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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. 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.
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.
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.
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.

2. FATF Recommendation 35
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Penny Stocks
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.

3. Commodity Pool
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
tipped off that they are being investigated.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Combines funds from various members and users them to trade in futures or options contracts.

4. Cash Letter
Harmful or Preferrential Tax Regimes.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
It was the first law in any country to make money laundering a crime.

5. Common types of 'Derivatives'
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
Futures contracts - forwards - swaps or options.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.

6. What does a 'Commission Rogatoire' normally specify?
As 'felonies' or 'all offenses in the criminal code'.
The possibility that lawsuits adverse judgements or contracts that turn out to be unenforceable can disrupt or adversely affect the operatinos or condition of a financial siutation.
The 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.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.

7. Options/Options Contract
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.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
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'
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.

8. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.

9. Account Monitoring Order (UK and several other countries)
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
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).
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.
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.

10. What is the Federal Service for Financial Monitoring?
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).
They pool investors' money and invest those funds in financial instruments in an effort to turn a profit. They typically issue securities in 'private offerings' that are usually not required to be registered with sa securities or financial regulator.
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.
The FIU of Russia

11. Dormant Account
Terrorism and Terrorist Financing
An electronic quotation system that displays quotes of many securities traded over the counter.
An account that does not show activity other than the posting of interest or account maintenance fees.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.

12. Behaviour detection

13. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Placement - Layering - Integration.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
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.

14. Pink Sheets
An electronic quotation system that displays quotes of many securities traded over the counter.
Banking services between merchant banks and other financial institutions.
Combines funds from various members and users them to trade in futures or options contracts.
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.

15. Guaranteed Introducing Broker

16. MENAFATF
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Middle East and North Africa Financial Action Task Force
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.

17. What are included in the Wolfsberg AML Principles on Private Banking?
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.
no regulatory power or function
Middle East and North Africa Financial Action Task Force
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.

18. GAFISUD
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 transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Financial Action Task Force on Money Laundering in South America
If provided for money laundering to be an internationally extraditable offense.

19. Margin
Strengthen customer identification measures in iternational and domestic wire transfers.
Quite simply - a plan. While in the US - this term is often associated with a nefarious plan - it should NOT be assumed to be evil - especially as it may appear on the ACAMS exam.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.

20. According to FATF - financial transactions above a designated threshold may include situations where the transaction takes place in a single operation or in several operations...
They can accrue value as the price of the underlying stock rises.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
that appear to be linked
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.

21. How do 'Hedge Funds' operate?

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

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

24. FATF Recommendation 8
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.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
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

25. Vital Service Providers (VSPs)
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
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.
People who help move the billions of dollars drug traffickers earn around the world.

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

27. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
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.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
An account that does not show activity other than the posting of interest or account maintenance fees.
Impose AML requirements on alternative remittance systems.

28. Scheme
Quite simply - a plan. While in the US - this term is often associated with a nefarious plan - it should NOT be assumed to be evil - especially as it may appear on the ACAMS exam.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
bear the mark 'APOSTILLE'
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.

29. What do boiler room salespeople typically do?

30. 'Closed-end Mutual Fund' (Or Comany)

31. Affidavit
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.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
a chain-referral scheme.
Typical mass-market banking where individual customers use local branches of larger commercial banks.

32. FATF Recommendation 1
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.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
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.

33. What is a Private Investment company (PIC)?
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).
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.

34. Who appoints a 'Federal Receiver' (US)?
Solicits potential customers and issues the credit cards.
A US Federal Court
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
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.

35. When is a jurisdiction considered to be 'ring-fenced'?
Solicits potential customers and issues the credit cards.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.

36. 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]
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.
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.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.

37. FATF Recommendation 33
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 there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
A market is which securities are bought and sold outside of establisehd securities markets.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.

38. 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.
Reliable - independent source of documents - data or information.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
bear the mark 'APOSTILLE'

39. Wholesale Banking
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
Impose AML requirements on alternative remittance systems.
Banking services between merchant banks and other financial institutions.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.

40. May a shell bank maintain a correspondent account with a US bank?
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
No.
People who help move the billions of dollars drug traffickers earn around the world.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.

41. FATF Recommendation 2
It was the first law in any country to make money laundering a crime.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.

42. Why is understanding 'Product Diversion' important to the AML investigator?
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
As a financial institution service that is very vulnerable to money laundering.
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.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.

43. 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.
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.
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.
EurAsian Group

44. FATF
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.
Placement - Layering - Integration.
Person who - for compensation - provides advice on securities and investments and manages client assets.
Financial Action Task Force

45. How does the Egmont group help its members?
Financial Action Task Force
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.
Processes transactions for merchants who accept credit cards.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.

46. EAG
Financial institutions should have adequate supervision and regulation. Ensure no criminal element in position on control. Money transfer/exchangers should be registered and subjected to monitoring.
As a financial institution service that is very vulnerable to money laundering.
tipped off that they are being investigated.
EurAsian Group

47. Express Trust
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Pouch activity.
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.
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.

48. In what country is the Egmont Group Secretariat now located?
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.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Canada
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.

49. Identification data
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Reliable - independent source of documents - data or information.
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.

50. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
Financial Action Task Force
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 promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.