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. 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
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
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.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Harmful or Preferrential Tax Regimes.


2. How does the Egmont group help its members?
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
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.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


3. Commodity
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
A deliberate attempt to interfere with the free and fair operation of the market and create artificial - false or misleading appearances with respect to the price of - or market for a security - commodity or currency.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.


4. What the primary objectives of Offshore Group of Banking Supervisors?
An account that does not show activity other than the posting of interest or account maintenance fees.
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.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.


5. FATF Recommendation 27
As a financial institution service that is very vulnerable to money laundering.
Futures contracts - forwards - swaps or options.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.


6. What is a 'NCCT'?
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
Funds transfers - Shell Corporations - Contractual Transactions.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
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.


7. Abusive Squeezes

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8. 'Competent Authorities' refers to _____.
Foreign Corrupt Practices Act
Processes transactions for merchants who accept credit cards.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


9. Penny Stocks
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
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.
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.
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.


10. Guaranteed Introducing Broker

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11. What are included in the Wolfsberg AML Principles on Private Banking?
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).


12. What is a Financial Intelligence Unit?
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.
Person who - for compensation - provides advice on securities and investments and manages client assets.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


13. What is a 'Trust'?
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.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
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.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.


14. What were recently identified as Emerging Money Laundering risks?
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Funds transfers - Shell Corporations - Contractual Transactions.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.


15. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
If provided for money laundering to be an internationally extraditable offense.
Stored Value Cards - Mobile Payments - Internet Payments.


16. Why is it imperative to have a strong Know Your Employee program?
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.
As a financial institution service that is very vulnerable to money laundering.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.


17. CFT
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.
Countering the Financing of Terrorism (Counter Terrorist Financing).
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.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.


18. SRO (Self-Regulatory Organizations)
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Combines funds from various members and users them to trade in futures or options contracts.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
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.


19. What are the two types of Stored Value Cards?
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
Open and Closed system
The US State Dept issues the report annually.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.


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

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21. (Stock) Warrants
The world's largest private DB of stolen art.
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).
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.
A US Federal Court


22. What is private investment company also known as?
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
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.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.


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

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24. How is 'Identity theft' often accomplished?
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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.


25. FATF Recommendation 32
Review customer files and conduct random sampling of accounts.
Countries should recognize money laundering as an extraditable offense.
An electronic quotation system that displays quotes of many securities traded over the counter.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.


26. How do most governments view Private Banking?
As a financial institution service that is very vulnerable to money laundering.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
As 'felonies' or 'all offenses in the criminal code'.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.


27. Mutual Fund
2% - 5% ($590B - $1.5T)
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).
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
A US Federal Court


28. A public perception that a bank is not able to manage its operational risk effectively can...
disrupt or adversely afftect the business of the bank.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
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.


29. Fraud
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Stored Value Cards - Mobile Payments - Internet Payments.
It conducts investigations in support of a government's confiscation or seizure efforts.


30. Underwriting
No.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
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.


31. FATF Recommendation 39
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
To reduce financial crime - including money laundering and terrorit financing.
Countries should recognize money laundering as an extraditable offense.
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).


32. Examples of White-collar crime
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Freeze and confiscate terrorist assets.


33. FATF Recommendation 13
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Financial Action Task Force on Money Laundering in South America
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.


34. Reverse Flip

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35. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.
Countering the Financing of Terrorism (Counter Terrorist Financing).
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.


36. FATF Recommendation 19
Money Laundering and Tax Evasion
Countries should recognize money laundering as an extraditable offense.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


37. Behaviour detection

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38. Corporate Bank

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39. FATF Recommendation 36
Provide mutual legal assistance.
As 'felonies' or 'all offenses in the criminal code'.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Typical mass-market banking where individual customers use local branches of larger commercial banks.


40. What must a financial institution do if they have 'Exempt Accounts'?
Review customer files and conduct random sampling of accounts.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
Banking services between merchant banks and other financial institutions.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.


41. Respondent Bank

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42. What do 'Hedge Funds' attempt to do?
Financial Action Task Force on Money Laundering in South America
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.


43. Who are the parties involved in a trust?
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
The FIU of Russia
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.


44. Why is 'Know Your Correspondent Bank' important?
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
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.
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 co-operative property seller agrees to sell home at a well-below market reported price - then accepts the difference 'under the table'. When launderer later sells house - he recognizes 'gain' and all funds appear legitimate as it sold at market.


45. How do 'Hedge Funds' operate?

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46. A 'panzi' scheme is named for whom?
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.
Letters Rogatory
Intergovernmental Action Group against Money Laundering in Africa
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 30
People who help move the billions of dollars drug traffickers earn around the world.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
disrupt or adversely afftect the business of the bank.


48. Where is the Art Loss Register found?
www.artloss.com
Intergovernmental Action Group against Money Laundering in Africa
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
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).


49. FATF Recommendation 40
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Solicits potential customers and issues the credit cards.
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.


50. Wholesale Banking
Canada
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
Banking services between merchant banks and other financial institutions.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.