Test your basic knowledge |

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. Counter Party
As a financial institution service that is very vulnerable to money laundering.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
The opposing part of a transaction or trade.

2. 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.

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

3. FATF Recommendation 34
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
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.

4. FATF Recommendation 27
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Review customer files and conduct random sampling of accounts.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.

5. 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.
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.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Review customer files and conduct random sampling of accounts.

6. What is the aim of Joint Money Laundering Steering Group? (UK)
2% - 5% ($590B - $1.5T)
Type of foreign bank that is incorporated in the host country but is considered to be owned by a foreign parent bank. It only needs to operarted under the host country's regulations.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws

7. What is the FCPA primarily known for?
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).
Provide mutual legal assistance.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
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.

8. Convertible Bond
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
People who help move the billions of dollars drug traffickers earn around the world.
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 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.

9. 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...
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
that appear to be linked
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
Pouch activity.

10. FATF Recommendation 8
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Financial Action Task Force on Money Laundering in South America
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.

11. Why is understanding 'Product Diversion' important to the AML investigator?
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.
Financial Action Task Force
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.
Terrorism and Terrorist Financing

12. FATF Recommendation 14
The US State Dept issues the report annually.
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.
2% - 5% ($590B - $1.5T)
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.

13. FATF Recommendation 33
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
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
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.

14. How does 'Product Diversion' work?
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.
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.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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.

15. Foriegn Shell Banks are vehicles for ______ & ______?
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Money Laundering and Tax Evasion
A bank which uses the services of another bank - such as check clearing - wire transfers - etc. The bank providing the service is the 'Correspondent Bank'

16. OCC Office of the Comptroller of the Currency
Pouch activity.
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
a Sr Management level
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.

17. Options/Options Contract
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
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.

18. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
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.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Financial Action Task Force
Funds transfers - Shell Corporations - Contractual Transactions.

19. Affidavit
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
A bank which uses the services of another bank - such as check clearing - wire transfers - etc. The bank providing the service is the 'Correspondent Bank'
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
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.

20. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
Stored Value Cards - Mobile Payments - Internet Payments.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.

21. Why is a 'money order' attractive to a money launderer?
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Direct or indirect advisor on buying and selling futures or commodity options.

22. EAG
EurAsian Group
To reduce financial crime - including money laundering and terrorit financing.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.

23. Fraud
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
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]

24. How do most governments view Private Banking?
As a financial institution service that is very vulnerable to money laundering.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Freeze and confiscate terrorist assets.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.

25. The Vienns Convention
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Funds transfers - Shell Corporations - Contractual Transactions.
The opposing part of a transaction or trade.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].

26. FATF Recommendation 1
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
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.

27. Identification data
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.
Reliable - independent source of documents - data or information.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Pouch activity.

28. What must a financial institution do if they have 'Exempt Accounts'?
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Placement - Layering - Integration.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.

29. FATF Recommendation 11
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Confiscation
Banking services between merchant banks and other financial institutions.
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.

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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

31. What does the 'SEC' (US Securities and Exchange Commission) do?
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.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.

32. Downstream Correspondent Clearer
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
Strengthen customer identification measures in iternational and domestic wire transfers.
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.

33. Credit Card Associations
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.
have in place compulsory currency reporting requirements.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.

34. FATF Sepcial Recommendation on Terrorist Financing -- SR Three
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.
Freeze and confiscate terrorist assets.
The US State Dept issues the report annually.
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.

35. FATF Sepcial Recommendation on Terrorist Financing -- SR Seven
that appear to be linked
Solicits potential customers and issues the credit cards.
Strengthen customer identification measures in iternational and domestic wire transfers.
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.

36. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
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'.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Freeze and confiscate terrorist assets.

37. Cash Log

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

38. How does the Egmont group help its members?
foreign correspondent banks
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
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.
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.

39. (Stock) Warrants
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
bear the mark 'APOSTILLE'
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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.

40. Why is 'Know Your Correspondent Bank' important?
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.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Futures contracts - forwards - swaps or options.
foreign correspondent banks

41. What does Financial Sector AssessmentProgram (FSAP) do?
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
The world's largest private DB of stolen art.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.

42. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
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.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.

43. Distribution Channels (Insurance Industry)
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
Direct or indirect advisor on buying and selling futures or commodity options.
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]
Review customer files and conduct random sampling of accounts.

44. FATF Recommendation 7

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

45. FATF Recommendation 30
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Funds transfers - Shell Corporations - Contractual Transactions.
Type of foreign bank that is incorporated in the host country but is considered to be owned by a foreign parent bank. It only needs to operarted under the host country's regulations.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.

46. How is 'Identity theft' often accomplished?
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.

47. What normal business practise makes 'Product Division' possible?
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
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.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
that appear to be linked

48. What was the target of UN Security Council Resolution 1373?
Terrorism and Terrorist Financing
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Financial Action Task Force on Money Laundering in South America
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.

49. FATF Sepcial Recommendation on Terrorist Financing -- SR Eight
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Pouch activity.

50. 'Commission Rogatoire' known in English as?
Letters Rogatory
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.
Futures contracts - forwards - swaps or options.
Money Laundering and Tax Evasion