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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. Behaviour detection

2. FCPA (US)
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.
Foreign Corrupt Practices Act
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.

3. FATF Recommendation 1
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
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.

4. The Palemo Convention
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.
A market is which securities are bought and sold outside of establisehd securities markets.
Combines funds from various members and users them to trade in futures or options contracts.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].

5. What the primary objectives of Offshore Group of Banking Supervisors?
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
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.
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.
Money Laundering and Tax Evasion

6. FATF Sepcial Recommendation on Terrorist Financing -- SR Three
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.
Freeze and confiscate terrorist assets.
Money Laundering and Tax Evasion
No.

7. What do boiler room salespeople typically sell?
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Processes transactions for merchants who accept credit cards.
Penny Stocks
Report suspicious transactions linked to terrorism.

8. FATF Recommendation 6
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
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.
Direct or indirect advisor on buying and selling futures or commodity options.

9. FATF Recommendation 4
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
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.

10. US law prohibhits Foriegn Shell Banks from ____?
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
foreign correspondent banks

11. What is the primary use of a 'Mutual Legal Assistance Treaty'?
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Financial Action Task Force on Money Laundering in South America
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.

12. FATF Sepcial Recommendation on Terrorist Financing -- SR One
Take immediate steps to ratify and implement the UN instruments.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
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.

13. FATF Recommendation 15
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.
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.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.

14. Why is a 'money order' attractive to a money launderer?
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
Impose AML requirements on alternative remittance systems.
tipped off that they are being investigated.

15. FATF Recommendation 17
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.

16. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
Terrorism and Terrorist Financing
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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).
Impose AML requirements on alternative remittance systems.

17. Variable Annuity
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).
Person who - for compensation - provides advice on securities and investments and manages client assets.
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.
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.

18. Cash Log

19. What was the target of UN Security Council Resolution 1373?
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
Terrorism and Terrorist Financing
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.

20. What is the FCPA primarily known for?
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
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
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.
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).

21. Distribution Channels (Insurance Industry)
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.
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.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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]

22. FATF's designated transactional threshold for Casinos (including Internet Casinos) is _____.
An electronic quotation system that displays quotes of many securities traded over the counter.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)

23. Downstream Correspondent Clearer
Freeze and confiscate terrorist assets.
have in place compulsory currency reporting requirements.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
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.

24. 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...
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
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.
foreign correspondent banks
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.

25. In what country is the Egmont Group Secretariat now located?
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.
The world's largest private DB of stolen art.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Canada

26. Commodity
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
foreign correspondent banks
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.

27. SRO (Self-Regulatory Organizations)
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.
To reduce financial crime - including money laundering and terrorit financing.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
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.

28. What is the Federal Service for Financial Monitoring?
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
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.
The FIU of Russia

29. Guaranteed Introducing Broker

30. Common types of 'Derivatives'
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.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Futures contracts - forwards - swaps or options.
An electronic quotation system that displays quotes of many securities traded over the counter.

31. What is the Wolfsberg group?
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
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.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.

32. The 'Art Loss Register'

33. Express Trust
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.
Financial Action Task Force
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
To reduce financial crime - including money laundering and terrorit financing.

34. Under the US Bank Secrecy Act - SAR filings are confidential and the institutions employees cannot ____?

35. Why do companies export their goods at prices far below those in their home country?
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
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
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.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.

36. 'Kiting' via credit card
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
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.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.

37. Investment Adviser
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.
Stored Value Cards - Mobile Payments - Internet Payments.
Person who - for compensation - provides advice on securities and investments and manages client assets.
Typical mass-market banking where individual customers use local branches of larger commercial banks.

38. Short Sale

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

40. Wire Transfers
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Processes transactions for merchants who accept credit cards.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
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.

41. FATF Recommendation 32
They can accrue value as the price of the underlying stock rises.
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 UN Convention against Transnational Organized Crime [Adopted 12/2000].
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.

42. Nostro

43. FATF Recommendation 36
Provide mutual legal assistance.
disrupt or adversely afftect the business of the bank.
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).
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.

44. Basel's 'CDD for Banks' states that the decision to open an account for a PEP should be taken at...
a Sr Management level
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
An account that does not show activity other than the posting of interest or account maintenance fees.
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.

45. 'Commission Rogatoire' known in English as?
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Letters Rogatory
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Funds transfers - Shell Corporations - Contractual Transactions.

46. FATF Recommendation 9
Canada
www.artloss.com
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
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.

47. Structuring is a common technique in jurisdictions that...
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
bear the mark 'APOSTILLE'
To reduce financial crime - including money laundering and terrorit financing.
have in place compulsory currency reporting requirements.

48. What can result from on institution's disregard for the Basel Due Diligence Principle?
Futures contracts - forwards - swaps or options.
Money Laundering and Tax Evasion
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.

49. Money Mules
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.
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
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.
An electronic quotation system that displays quotes of many securities traded over the counter.

50. Retail Banking
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.
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.
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.
Typical mass-market banking where individual customers use local branches of larger commercial banks.