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. Nostro

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


2. What is the FCPA primarily known for?
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.
They can accrue value as the price of the underlying stock rises.
Issue and cancel securities certificates to reflect chagnes in ownership - act as an intermediary for the issuing company - and hanlde lost - stolen or destroyed certificates.
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).


3. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
The FIU of the UK
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'
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.


4. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
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.
The US State Dept issues the report annually.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
Report suspicious transactions linked to terrorism.


5. (Credit Card) Issuing Bank
Solicits potential customers and issues the credit cards.
Intergovernmental Action Group against Money Laundering in Africa
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


6. Many jurisdictions have legislation to ensure that suspects are not ____?
It was the first law in any country to make money laundering a crime.
tipped off that they are being investigated.
Middle East and North Africa Financial Action Task Force
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)


7. FCPA (US)
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).
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.
Foreign Corrupt Practices Act
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.


8. What is the Serious Organised Crime Agency (SOCA)?
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.
It conducts investigations in support of a government's confiscation or seizure efforts.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
The FIU of the UK


9. FATF Recommendation 26
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
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.
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.


10. Why is understanding 'Product Diversion' important to the AML investigator?
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]
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.
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).


11. FATF Recommendation 13
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.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.


12. Vital Service Providers (VSPs)
An account that does not show activity other than the posting of interest or account maintenance fees.
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.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
People who help move the billions of dollars drug traffickers earn around the world.


13. Express Trust
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
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.
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.


14. FATF Recommendation 32
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
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.
Penny Stocks
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.


15. FATF Recommendation 1
Strengthen customer identification measures in iternational and domestic wire transfers.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
As 'felonies' or 'all offenses in the criminal code'.
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.


16. Why is 'Know Your Correspondent Bank' important?
As a key tool in detecting suspicious or money laundering activity - it is important because correspondent accounts are often used as conduits to launder criminal proceeds in international settings.
Refers to where the agent is acting under a contractual arrangement with the insurer to carry out its CDD functions (i.e. the agent is regarded as synonymous with the insurer) [FATF Risk-Based approach - Guidance for the Life Insurance Sector - Oct 0
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
Solicits potential customers and issues the credit cards.


17. What does Financial Sector AssessmentProgram (FSAP) do?
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.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
Report suspicious transactions linked to terrorism.
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 do boiler room salespeople typically sell?
foreign correspondent banks
Penny Stocks
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 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.


19. When is a jurisdiction considered to be 'ring-fenced'?
Stored Value Cards - Mobile Payments - Internet Payments.
An introducing broker-dealer with an exclusive written agreement with a Futures Commission Merchant (FCM) that obligates the FCM to assume responsibility for the introducing broker's performance.
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.


20. Open System Stored Value Card
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
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.
Foreign Corrupt Practices Act


21. Cash Log

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


22. FATF Recommendation 9
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.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
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.


23. GAFISUD
Financial Action Task Force on Money Laundering in South America
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.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.


24. Corporate Bank

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


25. FATF Recommendations examples of non-financial businesses and professions
Processes transactions for merchants who accept credit cards.
Casinos - real estate agents - precious metal/stone dealers - lawyers - notaries - accountants and trust & company service providers.
A trust clearly created by the settlor - usually in the form of a document - such as a written deed or trust.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).


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

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


27. Retail Banking
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 introducing broker-dealer with an exclusive written agreement with a Futures Commission Merchant (FCM) that obligates the FCM to assume responsibility for the introducing broker's performance.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.


28. Who appoints a 'Federal Receiver' (US)?
A US Federal Court
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
EurAsian Group
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.


29. FATF Recommendation 5
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
Impose AML requirements on alternative remittance systems.
Open and Closed system
Financial Action Task Force


30. What do 'Hedge Funds' attempt to do?
The FIU of the UK
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.
Pouch activity.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.


31. FATF Recommendation 19
Canada
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.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
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.


32. What the primary objectives of Offshore Group of Banking Supervisors?
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
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.
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).
Real Estate - Insurance Transactions - Trade-Based Money Laundering.


33. Market Manipulation
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.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
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.
Freeze and confiscate terrorist assets.


34. 'Kiting' via credit card
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
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.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.


35. What are included in the Wolfsberg AML Principles on Private Banking?
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]
They can accrue value as the price of the underlying stock rises.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
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.


36. Commodity Pool Operator
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.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.
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.


37. Where is the Art Loss Register found?
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
www.artloss.com


38. FATF Recommendation 27
To reduce financial crime - including money laundering and terrorit financing.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.


39. A pyramid scheme is also called...
a chain-referral scheme.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
bear the mark 'APOSTILLE'
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.


40. What is private investment company also known as?
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.
The opposing part of a transaction or trade.
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.


41. Cash Equivalent

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


42. What normal business practise makes 'Product Division' possible?
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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.
disrupt or adversely afftect the business of the bank.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.


43. FATF Recommendation 36
Provide mutual legal assistance.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.
Confiscation
Placement - Layering - Integration.


44. Short Sale

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


45. FATF Recommendation 7

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


46. FATF Recommendation 4
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
www.artloss.com
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
Provide the widest possible range of assistance to other countries' law enforcement and regulatory authorities for terrorist financing investigations.


47. FATF Recommendation 37
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
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]
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
Large companies often export their branded products at wholesale prices far below those at which those products are offered in that country.


48. 'Coucil of Europe Convention on Laundering - Search - Seizure and Confiscation of the Proceeds from Crime' is known for what?
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.
have in place compulsory currency reporting requirements.
Extending the offense of money laundering to include money laundering associated with all serious offenses - not only with drug trafficking [Adopted 9/90].
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).


49. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
Have measures in place to detect the physical corss-border transportation of currency and bearer negotiable instruments - including a declaration system.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Confiscation
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.


50. Identification data
Reliable - independent source of documents - data or information.
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 recognize money laundering as an extraditable offense.
Provide mutual legal assistance.