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 1
The world's largest private DB of stolen art.
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 criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Countries should recognize money laundering as an extraditable offense.


2. (Credit Card) Issuing Bank
Money Laundering and Tax Evasion
Solicits potential customers and issues the credit cards.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Countering the Financing of Terrorism (Counter Terrorist Financing).


3. Commodity Pool Operator
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
A market is which securities are bought and sold outside of establisehd securities markets.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.


4. OTC markets Over-The-Counter
A market is which securities are bought and sold outside of establisehd securities markets.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
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.
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.


5. Vital Service Providers (VSPs)
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
People who help move the billions of dollars drug traffickers earn around the world.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.


6. FATF Recommendation 33
Harmful or Preferrential Tax Regimes.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.


7. Margin
Funds transfers - Shell Corporations - Contractual Transactions.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.
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.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.


8. FATF Recommendation 32
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).
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.


9. Underwriting
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
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.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
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.


10. Who appoints a 'Federal Receiver' (US)?
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 ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
A US Federal Court
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.


11. What is the Federal Service for Financial Monitoring?
The FIU of Russia
The International Monetary Fund (IMF) and the world bank conduct the joint program.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)


12. What are some of the AML dangers of casino junkets?
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
Report suspicious transactions linked to terrorism.
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.
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.


13. Under the US Bank Secrecy Act - SAR filings are confidential and the institutions employees cannot ____?

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14. Why is 'Know Your Customer's Customer' important?
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
Middle East and North Africa Financial Action Task Force


15. FATF Recommendation 34
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 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.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
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.


16. FATF Recommendation 40
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.
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.
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.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.


17. A 'Cash Letter' can also be referred to as _____.
The US State Dept issues the report annually.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Pouch activity.
tipped off that they are being investigated.


18. Transparency International
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.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
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.


19. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
Canada
Urge investors to buy 'house stocks' - stocks that the firm buys and sells as a market maker or has in its inventory. Oftentimes - they are running a 'pump-and-dumo' scheme.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Take immediate steps to ratify and implement the UN instruments.


20. Cash Letter
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.
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
Financial Action Task Force


21. Nostro

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22. Guaranteed Introducing Broker

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

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24. FATF Recommendation 27
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Impose AML requirements on alternative remittance systems.
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.


25. May a shell bank maintain a correspondent account with a US bank?
Placement - Layering - Integration.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
No.


26. Retail Banking
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
An electronic quotation system that displays quotes of many securities traded over the counter.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.


27. 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...
As 'felonies' or 'all offenses in the criminal code'.
no regulatory power or function
PEP accounts need to be identified - approved by senior management - and have ongoing enhanced monitoring. Sources of Wealth and funds must also be established.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.


28. Why is it imperative to have a strong Know Your Employee program?
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
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.
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.
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.


29. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
It conducts investigations in support of a government's confiscation or seizure efforts.
The US State Dept issues the report annually.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
tipped off that they are being investigated.


30. FATF Sepcial Recommendation on Terrorist Financing -- SR Three
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 ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
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.
Freeze and confiscate terrorist assets.


31. Basel committee's 'Customer Due Diligence for Banks' when verifying a unit's compliance with KYC policies and procedures - the home country supervisors or auditors should do what?
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
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.
Review customer files and conduct random sampling of accounts.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.


32. Fraud
Provide mutual legal assistance.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
no regulatory power or function
Harmful or Preferrential Tax Regimes.


33. Derivatives
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Money Laundering and Tax Evasion
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.


34. Short Sale

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35. FATF Recommendation 39
Countries should recognize money laundering as an extraditable offense.
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.
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.
Futures contracts - forwards - swaps or options.


36. What is the goal of FSAP?
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.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Stored Value Cards - Mobile Payments - Internet Payments.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.


37. Reverse Flip

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38. Convertible Bond
www.artloss.com
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.
An electronic quotation system that displays quotes of many securities traded over the counter.
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.


39. How does 'Product Diversion' work?
have in place compulsory currency reporting requirements.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
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.
Urge investors to buy 'house stocks' - stocks that the firm buys and sells as a market maker or has in its inventory. Oftentimes - they are running a 'pump-and-dumo' scheme.


40. What does the 'SEC' (US Securities and Exchange Commission) do?
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
The opposing part of a transaction or trade.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.


41. EAG
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Non-Coperative countries and Territories. Country or territory that has been designated by the FATF as non-cooperative with international AML principles and procedures.
Impose AML requirements on alternative remittance systems.
EurAsian Group


42. FATF Recommendation 17
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
Penny Stocks
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.


43. FATF Recommendation 13
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
An account that does not show activity other than the posting of interest or account maintenance fees.
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.


44. FATF Recommendation 29
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
The world's largest private DB of stolen art.
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]
A market is which securities are bought and sold outside of establisehd securities markets.


45. FATF Recommendation 15
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.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
Reliable - independent source of documents - data or information.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data


46. UK courts view on 'Suspicion'
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
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.
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.


47. What is one of the Financial Service Authority's (UK) tasks?
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.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
To reduce financial crime - including money laundering and terrorit financing.


48. FATF Recommendation 37
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.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Processes transactions for merchants who accept credit cards.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.


49. What must a financial institution do if they have 'Exempt Accounts'?
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
bear the mark 'APOSTILLE'
The UN Convention against Transnational Organized Crime [Adopted 12/2000].


50. Investment Adviser
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.
Person who - for compensation - provides advice on securities and investments and manages client assets.
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.
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.