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Certified Anti Money Laundering Specialist Cams

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Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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1. The IMF estimates that laundered funds compromise ______ of the world's GDP
2% - 5% ($590B - $1.5T)
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.
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.
Direct or indirect advisor on buying and selling futures or commodity options.

2. Why is it imperative to have a strong Know Your Employee program?
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Court order directing a law enforcement officer to seize and detain a particular person and require them to provide an answer to a compliant or otherqise appear in court.
Financial institutions should pay special attention to (and examine & document) complex - unusual large transactions - and all transactions which have no apparent economic or lawful purpose.
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.

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

4. White-Collar crime

5. GAFISUD
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Financial Action Task Force on Money Laundering in South America
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.

6. 'Commission Rogatoire' known in English as?
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
An electronic quotation system that displays quotes of many securities traded over the counter.
A US Federal Court
Letters Rogatory

7. Why is 'refining' critical to a money launderer's efforts?
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Solicits potential customers and issues the credit cards.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.

8. Derivatives
Report suspicious transactions linked to terrorism.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
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.

9. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
Ensure that entities - in particular non-profit organizations - cannot be misused to finance 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.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.

10. What normal business practise makes 'Product Division' possible?
Person who - for compensation - provides advice on securities and investments and manages client assets.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.

11. Wholesale Banking
Banking services between merchant banks and other financial institutions.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
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.

12. 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...
The International Monetary Fund (IMF) and the world bank conduct the joint program.
that appear to be linked
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.

13. What is a 'Trust'?
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
The International Monetary Fund (IMF) and the world bank conduct the joint program.
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.

14. Dematerialization of Securities

15. What the primary objectives of Offshore Group of Banking Supervisors?
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.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.

16. 'Introducing Broker-Dealers in Commodities' (IB-C)

17. FATF
Financial Action Task Force
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.
An account that does not show activity other than the posting of interest or account maintenance fees.
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.

18. What is a Private Investment company (PIC)?
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
Procedures used to determine the identities of the account holders of a respondent bank in a correspondent banking relationship.
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
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.

19. FATF Sepcial Recommendation on Terrorist Financing -- SR Nine
The FIU of Russia
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
Money Laundering and Tax Evasion

20. In Emerging Money Laundering Risks - what 3 areas are associated with 'Contractual Transactions'?
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Provide mutual legal assistance.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.

21. Operational risks in KYC context relate to...
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
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.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Funds transfers - Shell Corporations - Contractual Transactions.

22. FATF Recommendation 28
Competent authorities should have powers of subpoena - search and seizure.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.
Financial Action Task Force on Money Laundering in South America

23. The 'Art Loss Register'

24. What was the effect of the 1988 Vienna Convention as it relates to extradtition?
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
Countering the Financing of Terrorism (Counter Terrorist Financing).
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
If provided for money laundering to be an internationally extraditable offense.

25. What is the Federal Service for Financial Monitoring?
Because it represents funds drawn on the account of a financial institution and not on a particular individual.
The nature of the request - the relevant criminal charges in the requesting country - the legal provision under which the request is made - and the information that is sought.
The FIU of Russia
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)

26. Who appear to be predominant users of hawalas and other alternative remittance systems?
a chain-referral scheme.
Expatriates sending money back to their home country or by other individuals sending money abroad.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
bear the mark 'APOSTILLE'

27. Why is 'Know Your Customer's Customer' important?
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
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.
Letters Rogatory
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.

28. What is private investment company also known as?
Letters Rogatory
Stored Value Cards - Mobile Payments - Internet Payments.
Direct or indirect advisor on buying and selling futures or commodity options.
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.

29. A 'Cash Letter' can also be referred to as _____.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
Pouch activity.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.

30. Boiler Room
An electronic quotation system that displays quotes of many securities traded over the counter.
The US State Dept issues the report annually.
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.
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.

31. What is the goal of FSAP?
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.

32. When is a jurisdiction considered to be 'ring-fenced'?
A fund setup by an investment trust in which the number of shares can fluctuate as investors' move in and out the fund. Share prices moves in direct proportion of the net asset value of the underlying investments (no premium or discount).
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.

33. FATF Recommendation 34
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
The FIU of the UK
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.

34. Investigative Log
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.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
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.
EurAsian Group

35. FATF Recommendation 23
Financial Action Task Force on Money Laundering in South America
It was the first law in any country to make money laundering a crime.
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
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.

36. FATF Recommendation 16
Freeze and confiscate terrorist assets.
A federal regulator in the US - responsible for auditing risk and compliance measuers of federally chartered banks.
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.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.

37. FATF Sepcial Recommendation on Terrorist Financing -- SR Eight
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.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
Take immediate steps to ratify and implement the UN instruments.
Countries should recognize money laundering as an extraditable offense.

38. What do boiler room salespeople typically sell?
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
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.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
Penny Stocks

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

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

41. What does a 'Commission Rogatoire' normally specify?
Harmful or Preferrential Tax Regimes.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
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.
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.

42. Examples of VSP's
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
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.

43. Distribution Channels (Insurance Industry)
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]
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
a Sr Management level

44. Variable Annuity
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.
Letters Rogatory
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.
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.

45. FATF Recommendation 4
bear the mark 'APOSTILLE'
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.

46. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
A US Federal Court
www.artloss.com
A detailed report on the narcotics trade and a lengthy narrative on the status of the related money laundering issues in most nations.

47. How is 'Legal Risk' defined by the 2001 Basel Due Diligence Principles?
Provide mutual legal assistance.
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 trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].

48. What does the principal US money laundering law look for before implementing its 'Extraterritorial Reach'?
Countries should recognize money laundering as an extraditable offense.
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
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.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.

49. FATF Recommendation 27
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Middle East and North Africa Financial Action Task Force

50. Portfolio Manager
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.
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.
have in place compulsory currency reporting requirements.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.

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Certified Anti Money Laundering Specialist Cams

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