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 Recommendation 7

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


2. What is a Financial Intelligence Unit?
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.
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
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.


3. The 'Art Loss Register'

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


4. How does the Egmont group help its members?
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.
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.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.


5. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
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.
The US State Dept issues the report annually.
Money Laundering and Tax Evasion


6. FATF Recommendation 11
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Dealers in precious metals/stones - trust and company services providers - lawyers - notaries and accountants should all be required to report suspicious activity - but legal privilege cannot be violated.
An electronic quotation system that displays quotes of many securities traded over the counter.
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.


7. What is a 'NCCT'?
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
A record that financial institutions must retain for each cash sale of bank checks - drafts - money orders - cashier's checks and traveller's checks between $3 -000 and $10 -000.
As 'felonies' or 'all offenses in the criminal code'.
bear the mark 'APOSTILLE'


8. The Joint Money Laundering Steering Group (UK) has published a series of AML Guidance Notes for different sectors of the financial community. But - As a group of trade associations - it has...
no regulatory power or function
www.artloss.com
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.
a chain-referral scheme.


9. Moneyval
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
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'.
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.


10. A pyramid scheme is also called...
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
a chain-referral scheme.
Futures contracts - forwards - swaps or options.


11. (Stock) Warrants
tipped off that they are being investigated.
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
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.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.


12. Open System Stored Value Card
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
Financial Action Task Force on Money Laundering in South America
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.


13. Futures Commission Merchant (FCM)
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
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.
Intergovernmental Action Group against Money Laundering in Africa
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.


14. FATF Recommendation 4
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)
foreign correspondent banks
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.


15. What does a 'Commission Rogatoire' normally specify?
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.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
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.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.


16. Who appear to be predominant users of hawalas and other alternative remittance systems?
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Expatriates sending money back to their home country or by other individuals sending money abroad.
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
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.


17. Three stages of money laundering
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Placement - Layering - Integration.


18. Corporate Bank

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


19. US law prohibhits Foriegn Shell Banks from ____?
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data


20. FATF Recommendation 8
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.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.
Foreign Corrupt Practices Act


21. What does an Extradition Treaty specify?
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Middle East and North Africa Financial Action Task Force
Penny Stocks
Direct or indirect advisor on buying and selling futures or commodity options.


22. Transparency International
that appear to be linked
As 'felonies' or 'all offenses in the criminal code'.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.


23. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.
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 measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.


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

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


25. GAFISUD
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.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Pouch activity.
Financial Action Task Force on Money Laundering in South America


26. FATF Recommendation 27
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.


27. Automated Sale
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
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.
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 contractual arrangement whereby the trustee manages the property for the benefit of the beneficiary in accordance with the contractual terms set by the grantor.


28. Legal Arrangements (Insurance Industry)
Direct or indirect advisor on buying and selling futures or commodity options.
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]
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.


29. 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).
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.


30. Foriegn Shell Banks are vehicles for ______ & ______?
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
Money Laundering and Tax Evasion
Freeze and confiscate terrorist assets.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.


31. EAG
EurAsian Group
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Placement - Layering - Integration.
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


32. (Credit Card) Issuing Bank
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
Solicits potential customers and issues the credit cards.
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.


33. What is one of the Financial Service Authority's (UK) tasks?
To reduce financial crime - including money laundering and terrorit financing.
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.
Middle East and North Africa Financial Action Task Force
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.


34. FATF Recommendations examples of non-financial businesses and professions
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
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.
As 'felonies' or 'all offenses in the criminal code'.


35. Reverse Flip

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


36. Identification data
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.
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.
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).
Reliable - independent source of documents - data or information.


37. FCPA (US)
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Foreign Corrupt Practices Act
Impose AML requirements on alternative remittance systems.
Intergovernmental Action Group against Money Laundering in Africa


38. Derivatives
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
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.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.


39. Examples of White-collar crime
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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.


40. What do boiler room salespeople typically do?

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


41. What is meant by 'Know Your Customer's customer'?
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.


42. What do boiler room salespeople typically sell?
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Penny Stocks
Foreign Corrupt Practices Act
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.


43. FATF Recommendation 39
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
Countries should recognize money laundering as an extraditable offense.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
A record that financial institutions must retain for each cash sale of bank checks - drafts - money orders - cashier's checks and traveller's checks between $3 -000 and $10 -000.


44. FATF
EurAsian Group
Financial Action Task Force
Financial institutions should pay special attention to (and examine & document) complex - unusual large transactions - and all transactions which have no apparent economic or lawful purpose.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.


45. 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...
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
A market is which securities are bought and sold outside of establisehd securities markets.
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.
that appear to be linked


46. Apostille

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


47. GIABA
Direct or indirect advisor on buying and selling futures or commodity options.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Intergovernmental Action Group against Money Laundering in Africa


48. Why is a 'money order' attractive to a money launderer?
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
As 'felonies' or 'all offenses in the criminal code'.
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.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.


49. What is a 'Trust'?
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
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.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.


50. FATF Recommendation 18
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
EurAsian Group
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.