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. Distribution Channels (Insurance Industry)
Letters Rogatory
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.
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]
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.


2. A public perception that a bank is not able to manage its operational risk effectively can...
Letters Rogatory
disrupt or adversely afftect the business of the bank.
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
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.


3. Nostro

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


4. Why is 'refining' critical to a money launderer's efforts?
that appear to be linked
www.artloss.com
Letters Rogatory
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


5. Retail Banking
Banking services between merchant banks and other financial institutions.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
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.
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.


6. What were recently identified as Emerging Money Laundering risks?
Funds transfers - Shell Corporations - Contractual 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.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
www.artloss.com


7. 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


8. Credit Card Associations
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
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
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.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.


9. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
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.
The US State Dept issues the report annually.
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.


10. What does an Extradition Treaty specify?
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
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.
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.


11. The Vienns Convention
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.
Impose AML requirements on alternative remittance systems.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
The principal US money laundering law can apply to a non-US citizen if the 'conduct' occurs 'in part' of the US.


12. When is a jurisdiction considered to be 'ring-fenced'?
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
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.
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.


13. Foriegn Shell Banks are vehicles for ______ & ______?
that appear to be linked
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.
Money Laundering and Tax Evasion
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.


14. Where is the Art Loss Register found?
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.
www.artloss.com
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.


15. Fraud
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.


16. FATF Recommendation 19
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.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
tipped off that they are being investigated.
People who help move the billions of dollars drug traffickers earn around the world.


17. 'Closed-end Mutual Fund' (Or Comany)

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


18. FATF Recommendation 10
www.artloss.com
It conducts investigations in support of a government's confiscation or seizure efforts.
To take additional steps of examination and caution in identifying their customers and confirming that the customers' activities and funds are legitimate.
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data


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

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


20. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
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.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.


21. GIABA
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.
Countries should take immediate steps to become party to and implement fully the relevant international conventions related to AML and CFT efforts.
Intergovernmental Action Group against Money Laundering in Africa


22. The IMF estimates that laundered funds compromise ______ of the world's GDP
Reliable - independent source of documents - data or information.
2% - 5% ($590B - $1.5T)
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.
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. Respondent Bank

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


24. Who appear to be predominant users of hawalas and other alternative remittance systems?
Expatriates sending money back to their home country or by other individuals sending money abroad.
Countering the Financing of Terrorism (Counter Terrorist Financing).
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.
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.


25. FATF Recommendation 11
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.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Countries should ensure policy makers - the FIU - law enforcement and supervisors have effective mechanisms to enable cooperation.
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.


26. FATF Sepcial Recommendation on Terrorist Financing -- SR Eight
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
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).
Reliable - independent source of documents - data or information.
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.


27. A pyramid scheme is also called...
weakness in the implementation of bank programs - ineffective control procedures and failure to practice due diligence.
Under what authority? Among other things - it regulates brokers and dealers - under authority of the Securities Exchange Act of 1934.
a chain-referral scheme.
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.


28. FATF Recommendation 4
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
May involve movement or large sums of money going cross-border and often through multiple casinos - all by a third party (the operator). Sometime operator does not identify funds owners.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.


29. FATF Recommendation 37
They can accrue value as the price of the underlying stock rises.
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
By acquiring personal information about the victim (e.g: DOB - address - CC numbers) through stealth and misrepresentations.


30. Cash Letter
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.


31. What is private investment company also known as?
Take immediate steps to ratify and implement the UN instruments.
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.
a chain-referral scheme.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.


32. FATF Recommendation 38
Countries should establish national centers to receive and disseminate AML/CFT information and have access to law enforcement and others.
Real Estate - Insurance Transactions - Trade-Based Money Laundering.
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.
An electronic quotation system that displays quotes of many securities traded over the counter.


33. FATF Recommendation 5
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
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
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.


34. A notary can issue a Apostille but it must be in a country that signed The Hague Convention (1961) and it must ___________. If the notary doesn't understand - find another one.

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


35. Who are the parties involved in a trust?
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.
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
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.


36. The 'Art Loss Register'

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


37. EAG
If provided for money laundering to be an internationally extraditable offense.
A merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.
foreign correspondent banks
EurAsian Group


38. FATF Recommendation 17
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).
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
If one needs to transport currency across borders - one needs to have the smallest package possible to avoid detection.


39. What does a 'Commission Rogatoire' normally specify?
Harmful or Preferrential Tax Regimes.
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.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
An account that does not show activity other than the posting of interest or account maintenance fees.


40. Free Look Period
foreign correspondent banks
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.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.


41. FATF Recommendation 21
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
Combines funds from various members and users them to trade in futures or options contracts.
Customer makes payments on account with bad checks - then takes cash advances before they clear - thereby expanding his credit.
Banking services between merchant banks and other financial institutions.


42. 'Competent Authorities' refers to _____.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
2% - 5% ($590B - $1.5T)
An intelligence gathering law enforcement or regulatory body that receives financial information form covered financial institutions - businesses and persons in tis respective country.
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.


43. FATF Recommendation 22

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


44. Open System Stored Value Card
tipped off that they are being investigated.
Futures contracts - forwards - swaps or options.
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 terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.


45. 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...
'Tip Off' a customer that a report has been filed. Failure to maintain confidentiality is a violation of law.
Person who - for compensation - provides advice on securities and investments and manages client assets.
Supervisors should have powers to monitor and ensure compliance - including the ability to compel production of information and to impose sanctions.
no regulatory power or function


46. Dematerialization of Securities

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


47. Agent (Insurance Industry)
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
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
foreign correspondent banks
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.


48. FATF Recommendation 1
Processes transactions for merchants who accept credit cards.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.
Intergovernmental Action Group against Money Laundering in Africa
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.


49. Affidavit
Expatriates sending money back to their home country or by other individuals sending money abroad.
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.
have in place compulsory currency reporting requirements.
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.


50. FATF Sepcial Recommendation on Terrorist Financing -- SR Six
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Funds transfers - Shell Corporations - Contractual Transactions.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Impose AML requirements on alternative remittance systems.