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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. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
Combines funds from various members and users them to trade in futures or options contracts.
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]
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.

2. What do 'Hedge Funds' attempt to do?
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
The FIU of Russia
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
Letters Rogatory

3. FATF Recommendation 12
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
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.
Futures contracts - forwards - swaps or options.
Provide mutual legal assistance.

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

5. What was the target of UN Security Council Resolution 1373?
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.
Terrorism and Terrorist Financing
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.

6. FATF Recommendation 9
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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.
Strengthen customer identification measures in iternational and domestic wire transfers.
Financial Action Task Force

7. 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...
that appear to be linked
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
have in place compulsory currency reporting requirements.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.

8. Retail Banking
disrupt or adversely afftect the business of the bank.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism

9. Reverse Flip

10. Many jurisdictions have legislation to ensure that suspects are not ____?
tipped off that they are being investigated.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
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.

11. Portfolio Manager
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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.
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.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.

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

13. Downstream Correspondent Clearer
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
A US Federal Court
An introducing broker-dealer with an exclusive written agreement with a Futures Commission Merchant (FCM) that obligates the FCM to assume responsibility for the introducing broker's performance.
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.

14. What were recently identified as Emerging Money Laundering risks?
Processes transactions for merchants who accept credit cards.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Funds transfers - Shell Corporations - Contractual Transactions.

15. When is a jurisdiction considered to be 'ring-fenced'?
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
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.

16. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
Competent authorities should have powers of subpoena - search and seizure.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
A US Federal Court
foreign correspondent banks

17. FATF's designated transactional threshold for Financial Insitutions is _____.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
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.

18. How is 'Identity theft' often accomplished?
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
An electronic quotation system that displays quotes of many securities traded over the counter.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
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.

19. What are the three main functions of a 'Transfer Agent'?
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.
Financial Action Task Force
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
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.

20. Cash Log

21. FATF Recommendation 15
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
As 'felonies' or 'all offenses in the criminal code'.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.

22. Apostille

23. Structuring is a common technique in jurisdictions that...
have in place compulsory currency reporting requirements.
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.
Take expeditious action to requests by foreign countries to identify - freeze - seize and confiscate property that is proceeds of money laundering or a predicate crime.
The 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.

24. FATF Recommendation 19
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).
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.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.

25. Why do convertible bonds oftern have lower interest rates than non-convertible bonds?
Solicits potential customers and issues the credit cards.
They can accrue value as the price of the underlying stock rises.
Banking services between merchant banks and other financial institutions.
www.artloss.com

26. White-Collar crime

27. FATF Recommendation 37
Letters Rogatory
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
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.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.

28. FATF Recommendation 6
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.
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
no regulatory power or function

29. Why does a launderer try to run transactions through a concentration account of a financial institution?
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.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.

30. Convertible Bond
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
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.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.

31. FATF Recommendation 30
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
An account that does not show activity other than the posting of interest or account maintenance fees.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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]

32. EAG
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
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.
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.
EurAsian Group

33. FATF Recommendation 28
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.
Competent authorities should have powers of subpoena - search and seizure.
Canada
Confiscation

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

35. Futures Commission Merchant (FCM)
No.
disrupt or adversely afftect the business of the bank.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
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.

36. A notary can issue a Apostille but it must be in a country that signed The Hague Convention (1961) and it must ___________. If the notary doesn't understand - find another one.

37. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Placement - Layering - Integration.
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
Confiscation

38. FATF Recommendation 3
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.
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.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Take immediate steps to ratify and implement the UN instruments.

39. What are some of the AML dangers of casino junkets?
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.
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.
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 have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.

40. FATF Recommendation 24
Impose AML requirements on alternative remittance systems.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.

41. Foriegn Shell Banks are vehicles for ______ & ______?
Money Laundering and Tax Evasion
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
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).
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.

42. FATF Recommendation 5
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.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
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.

43. FATF Recommendation 17
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Penny Stocks

44. What does a 'Commission Rogatoire' normally specify?
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
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.
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.
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.

45. FATF Recommendation 22

46. What is the goal of FSAP?
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Direct or indirect advisor on buying and selling futures or commodity options.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.

47. Behaviour detection

48. CFT
Countering the Financing of Terrorism (Counter Terrorist Financing).
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
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).

49. Who appoints a 'Federal Receiver' (US)?
A US Federal Court
have in place compulsory currency reporting requirements.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Direct or indirect advisor on buying and selling futures or commodity options.

50. US law prohibhits Foriegn Shell Banks from ____?
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
The FIU of Russia
Harmful or Preferrential Tax Regimes.
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.