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. 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
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.


2. Identification data
Countering the Financing of Terrorism (Counter Terrorist Financing).
Person who - for compensation - provides advice on securities and investments and manages client assets.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Reliable - independent source of documents - data or information.


3. FATF Recommendation 5
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.


4. FATF Recommendation 1
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.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Confiscation
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.


5. How is 'Identity theft' often accomplished?
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
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.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
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.


6. Portfolio Manager
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.
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.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
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.


7. Who appoints a 'Federal Receiver' (US)?
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.
A US Federal Court
have in place compulsory currency reporting requirements.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.


8. Commodity Pool Operator
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Competent authorities should have powers of subpoena - search and seizure.
Pouch activity.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.


9. Example of use of an Apostille
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.
It one wants to open a bank account overseas - but do it through the mail - the bank may need to be assured that the copy of the passport is correct. The Apostille mark can assure this.
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.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.


10. FATF Recommendation 25
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.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
The FIU of the UK


11. Pink Sheets
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
An electronic quotation system that displays quotes of many securities traded over the counter.
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).


12. 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.

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13. Futures Commission Merchant (FCM)
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 US State Dept issues the report annually.
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.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.


14. Abusive Squeezes

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

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16. What does the 'SEC' (US Securities and Exchange Commission) do?
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.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
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.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


17. What does an Extradition Treaty specify?
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
To reduce financial crime - including money laundering and terrorit financing.
Processes transactions for merchants who accept credit cards.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.


18. Derivatives
Intergovernmental Action Group against Money Laundering in Africa
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
The sale of a stock that the investor does not own. To do so - a securities intermediary 'loans' the stock to the investor - which comes from the intermediary's own inventory - another client's margin account or another intermediary.
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.


19. Investigative Log
foreign correspondent banks
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
The sale of a stock that the investor does not own. To do so - a securities intermediary 'loans' the stock to the investor - which comes from the intermediary's own inventory - another client's margin account or another intermediary.


20. (Credit Card) Issuing Bank
Solicits potential customers and issues the credit cards.
Combines funds from various members and users them to trade in futures or options contracts.
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.
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.


21. Wholesale Banking
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 Transnational Organized Crime [Adopted 12/2000].
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Banking services between merchant banks and other financial institutions.


22. OCC Office of the Comptroller of the Currency
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
bear the mark 'APOSTILLE'
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.


23. Convertible Preferred
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.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


24. FATF Recommendation 4
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
The sale of a stock that the investor does not own. To do so - a securities intermediary 'loans' the stock to the investor - which comes from the intermediary's own inventory - another client's margin account or another intermediary.
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.


25. Who appear to be predominant users of hawalas and other alternative remittance systems?
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
Expatriates sending money back to their home country or by other individuals sending money abroad.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Futures contracts - forwards - swaps or options.


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

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27. FATF Sepcial Recommendation on Terrorist Financing -- SR Five

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28. FCPA (US)
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
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.
Foreign Corrupt Practices Act
Futures contracts - forwards - swaps or options.


29. CFT
Countering the Financing of Terrorism (Counter Terrorist Financing).
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
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.


30. Behaviour detection

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31. US law prohibhits Foriegn Shell Banks from ____?
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
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.
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 prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.


32. In Emerging Money Laundering Risks - what 3 methods are identified as 'Funds Transfers'?
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.
Stored Value Cards - Mobile Payments - Internet Payments.
If provided for money laundering to be an internationally extraditable offense.
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'


33. Money Mules
Strengthen customer identification measures in iternational and domestic wire transfers.
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.
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.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


34. What are the two types of Stored Value Cards?
Open and Closed system
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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.
Typical mass-market banking where individual customers use local branches of larger commercial banks.


35. FATF Recommendation 3
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.
www.artloss.com
Letters Rogatory
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.


36. Free Look Period
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
The UN Convention against Transnational Organized Crime [Adopted 12/2000].


37. FATF Recommendation 36
Processes transactions for merchants who accept credit cards.
If provided for money laundering to be an internationally extraditable offense.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
Provide mutual legal assistance.


38. Operational risks in KYC context relate to...
disrupt or adversely afftect the business of the bank.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
The FIU of the UK
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.


39. (Credit card) Acquiring 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.
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.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Processes transactions for merchants who accept credit cards.


40. FATF Recommendation 22

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41. What does FIU do?
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
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.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.


42. Many jurisdictions have legislation to ensure that suspects are not ____?
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.
tipped off that they are being investigated.
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.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


43. FATF Recommendation 28
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Competent authorities should have powers of subpoena - search and seizure.
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.


44. Express Trust
tipped off that they are being investigated.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
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.
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.


45. Fraud
The US State Dept issues the report annually.
Financial Action Task Force
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.


46. EAG
EurAsian Group
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


47. Short Sale

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48. Wire Transfers
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.
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.


49. Why does a launderer try to run transactions through a concentration account of a financial institution?
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
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.
Direct or indirect advisor on buying and selling futures or commodity options.
that appear to be linked


50. Cash Letter
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.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
a Sr Management level