SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Search
Test your basic knowledge |
Certified Anti Money Laundering Specialist Cams
Start Test
Study First
Subject
:
certifications
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. Apostille
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Penny Stocks
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.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
2. What is a Financial Intelligence Unit?
Open and Closed system
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
3. What do boiler room salespeople typically sell?
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Penny Stocks
The FIU of the UK
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.
4. 'Kiting' via credit card
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
bear the mark 'APOSTILLE'
Refers to express trusts or other similar legal arrangements - such as fiducie - treuhand and fideicomiso [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 09]
5. Why do companies export their goods at prices far below those in their home country?
Financial Action Task Force
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
6. FATF Recommendation 3
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Letters Rogatory
An electronic quotation system that displays quotes of many securities traded over the counter.
7. Many jurisdictions have legislation to ensure that suspects are not ____?
a Sr Management level
tipped off that they are being investigated.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
8. What are the two types of Stored Value Cards?
Letters Rogatory
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Open and Closed system
9. What is the goal of the Egmont group?
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.
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.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
10. 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.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
11. Derivatives
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
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.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
disrupt or adversely afftect the business of the bank.
12. Futures Commission Merchant (FCM)
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
13. What does FIU do beyond what FIU does?
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.
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.
It conducts investigations in support of a government's confiscation or seizure efforts.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
14. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
The US State Dept issues the report annually.
They can accrue value as the price of the underlying stock rises.
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.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
15. FATF Recommendation 33
Pouch activity.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
16. FATF Sepcial Recommendation on Terrorist Financing -- SR Three
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Foreign Corrupt Practices Act
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.
Freeze and confiscate terrorist assets.
17. FATF's designated transactional threshold for Financial Insitutions is _____.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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
18. Convertible Preferred
Freeze and confiscate terrorist assets.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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.
19. The Palemo Convention
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
Review customer files and conduct random sampling of accounts.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
20. Penny Stocks
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
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.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
21. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Solicits potential customers and issues the credit cards.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
22. FATF Recommendation 28
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.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
A US Federal Court
Competent authorities should have powers of subpoena - search and seizure.
23. Money Mules
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
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.
Provide mutual legal assistance.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
24. FATF Recommendation 14
www.artloss.com
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
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.
25. The Vienns Convention
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
26. Investigative Log
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
It was the first law in any country to make money laundering a crime.
tipped off that they are being investigated.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
27. As considered by UN and OECD - these are jurisdictions that have no or low tax rates - and do not attract real business or foreign investment
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Harmful or Preferrential Tax Regimes.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
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.
28. What was the target of UN Security Council Resolution 1373?
Pouch activity.
Terrorism and Terrorist Financing
have in place compulsory currency reporting requirements.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
29. What do boiler room salespeople typically do?
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
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.
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.
30. What is important about the US Money Laundering Control Act (MCLA)?
Take immediate steps to ratify and implement the UN instruments.
People who help move the billions of dollars drug traffickers earn around the world.
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.
It was the first law in any country to make money laundering a crime.
31. Why is a 'money order' attractive to a money launderer?
Strengthen customer identification measures in iternational and domestic wire transfers.
Financial institutions should pay special attention to (and examine & document) complex - unusual large transactions - and all transactions which have no apparent economic or lawful purpose.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Person who - for compensation - provides advice on securities and investments and manages client assets.
32. Nostro
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.
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.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
33. Affidavit
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
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.
Confiscation
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
34. A 'panzi' scheme is named for whom?
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.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
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.
Expatriates sending money back to their home country or by other individuals sending money abroad.
35. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
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.
Confiscation
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
36. USA Patriot Act Section 312 'Offshore Bank'
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
The FIU of the UK
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.
37. Where is the Art Loss Register found?
www.artloss.com
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
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.
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).
38. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
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.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
39. FATF Recommendation 17
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
40. FATF Recommendation 35
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Penny Stocks
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.
41. 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.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
42. FATF Recommendation 13
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Confiscation
43. What must a financial institution do if they have 'Exempt Accounts'?
Market participants intentionally restrict a security's liquidity. May lead to increased profits when the security's price rises due to the lack of 'supply'.
Stored Value Cards - Mobile Payments - Internet Payments.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
Countries should recognize money laundering as an extraditable offense.
44. 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...
foreign correspondent banks
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
45. What is the aim of Joint Money Laundering Steering Group? (UK)
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
46. Commodity
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
47. FATF Recommendation 40
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Intergovernmental Action Group against Money Laundering in Africa
FATF principles should apply to all branches and subsidiaries of a financial institution - even those abroad. Inability to do should re reported to parent institution's regulatory/supervisory authority.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
48. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
Strengthen customer identification measures in iternational and domestic wire transfers.
Banking services between merchant banks and other financial institutions.
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.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
49. Fraud
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
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
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.
50. FATF Recommendation 18
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.
Take immediate steps to ratify and implement the UN instruments.
The world's largest private DB of stolen art.
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.
The First & Only Encyclopedia of Self Help,
Self Improvement & Career Advice
250+ Easy-to-Follow Guides
5000+ Proven Tips
13 Types of Essential Skills Covered
Get The Value of 100+ Best Books in 1 Book.
502 Pages | $3.99 | PDF / EPub, Kindle Ready
Top Scores
[email protected]
- 100%
Anon hero
- 98%
Link to This Test
Related Subjects
Soft Skills
Business Skills
