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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. Where is the Art Loss Register found?
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
www.artloss.com
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.
Canada

2. Convertible Preferred
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.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
As 'felonies' or 'all offenses in the criminal code'.

3. How do 'Hedge Funds' operate?

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4. Counter Party
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
Applied by an authority - it is a special seal which certifies that a document is a true copy of an original. However - it does not and cannot speak to the validity of the document's content.
The opposing part of a transaction or trade.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.

5. Retail Banking
Typical mass-market banking where individual customers use local branches of larger commercial banks.
Reliable - independent source of documents - data or information.
Countering the Financing of Terrorism (Counter Terrorist Financing).
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.

6. 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.
Harmful or Preferrential Tax Regimes.
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
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'

7. (Stock) Warrants
disrupt or adversely afftect the business of the bank.
Expatriates sending money back to their home country or by other individuals sending money abroad.
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.
To profit all kinds of markets by pursuing leveraging and other speculative investment practises thay may increase the risk of investment loss.

8. Why is a 'money order' attractive to a money launderer?
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.
An account that does not show activity other than the posting of interest or account maintenance fees.
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Because it represents funds drawn on the account of a financial institution and not on a particular individual.

9. 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?
A US Federal Court
Penny Stocks
Review customer files and conduct random sampling of accounts.
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].

10. Behaviour detection

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11. FATF Recommendation 10
Record retention: 5 years - data to recreate any individual transaction; 5 years after relationship ends - all customer identification data
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.
Freeze and confiscate terrorist assets.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.

12. CFT
Solicits potential customers and issues the credit cards.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
Countering the Financing of Terrorism (Counter Terrorist Financing).
An arrangement whereby an investor pays for part of a securities purchase and borrows the rest from a securities intermediary.

13. 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.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).
Person who - for compensation - provides advice on securities and investments and manages client assets.
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.

14. How are 'Predicate Crimes' sometimes identified?

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15. Many jurisdictions have legislation to ensure that suspects are not ____?
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
bear the mark 'APOSTILLE'
tipped off that they are being investigated.

16. FATF Recommendation 36
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
EurAsian Group
Confidentiality - complex beneficial ownership arrangements - offshore investment vehicles - tax shelters and credit extension services.
Provide mutual legal assistance.

17. FCPA (US)
The opposing part of a transaction or trade.
Foreign Corrupt Practices Act
Attorneys - accountants - broker-dealers - communication and transportation providers - bankers and other financial service providers - concealment trap (hiding places) builders etc.
Intergovernmental Action Group against Money Laundering in Africa

18. USA Patriot Act Section 312 'Offshore Bank'
Financial institutions should NOT keep any anonymous or fictionally named accounts - plus they should undertake customer due diligence measures.
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.
a Sr Management level
Foreign Corrupt Practices Act

19. Common types of 'Derivatives'
The US State Dept issues the report annually.
Futures contracts - forwards - swaps or options.
Countries should have effective criminal - civil and administrative sanctions for money laundering or terrorist financing violations.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.

20. Pink Sheets
An electronic quotation system that displays quotes of many securities traded over the counter.
Direct or indirect advisor on buying and selling futures or commodity options.
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
have in place compulsory currency reporting requirements.

21. 'Loan Back' method. Give example of how it works.

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22. Distribution Channels (Insurance Industry)
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Stored Value Cards - Mobile Payments - Internet Payments.
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 are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).

23. FATF Recommendation 28
Render mutual legal assistance notwithstanding the absence of dual criminality. Where dual criminality is required - classification should not be an issue.
Competent authorities should have powers of subpoena - search and seizure.
Money Laundering - bribery - health care - tax - bankruptcy - securities or environmental frauds etc.
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.

24. FATF's designated transactional threshold for Delaers is Precious metals and / or Precious Stones is _____.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
It was the first law in any country to make money laundering a crime.
Operator or solicitor of funds for a commodity pool - which combines funds from members and trades futures or options contracts.

25. The Vienns Convention
Adopted in 1999 - it imposed sanctions on Taliban-controlled Afghanistan for its support of Osama Bin Laden and the Al-Qaeda organization
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Countering the Financing of Terrorism (Counter Terrorist Financing).

26. 'Commission Rogatoire' known in English as?
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.
Freeze and confiscate terrorist assets.
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.
Letters Rogatory

27. Why do companies export their goods at prices far below those in their home country?
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.
A firm or person that solicits or accepts orders on futures contracts or commodity options and accepts funds for their execution.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Funds transfers - Shell Corporations - Contractual Transactions.

28. What must a financial institution do if they have 'Exempt Accounts'?
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.
The exempt accounts must be documented and the financial institution that secures the exemptions must still monitor their financial transactions.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Assess any international correspondent's bank nature - ownership - management - reputation - supervision and AML & Terrorist Financing controls. Also. document relationship responsibilities.

29. FATF Recommendation 1
As a financial institution service that is very vulnerable to money laundering.
Placement - Layering - Integration.
To create new overseas markets - dispose of excess goods - or otherwise recover their costs.
Countries should criminalize money laundering and apply it to all serious offenses - even if committed in another country.

30. FATF Recommendation 14
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
Direct or indirect advisor on buying and selling futures or commodity options.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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

31. EAG
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
EurAsian Group
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.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.

32. FATF Recommendation 39
Procedures used to determine the beneficial owners of a correspondent bank and the type of activity that wil be 'normal and expected' for the bank.
Provide mutual legal assistance.
Countries should recognize money laundering as an extraditable offense.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)

33. Moneyval
Council of European committee of Experts on the Evaluation of AML measures and the Financing of Terrorism
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
Stored Value Cards - Mobile Payments - Internet Payments.
An electronic quotation system that displays quotes of many securities traded over the counter.

34. A pyramid scheme is also called...
Letters Rogatory
It conducts investigations in support of a government's confiscation or seizure efforts.
a chain-referral scheme.
Countries should designate law enforcement authorities with AML/CFT responsibilities and allow them special investigative techniques.

35. FATF Recommendation 13
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.
Futures contracts - forwards - swaps or options.
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
Countries should enable their competent authorities to freeze - seize and confiscate laundered property or proceeds.

36. FATF Recommendation 15
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
As 'felonies' or 'all offenses in the criminal code'.
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.
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.

37. US law prohibhits Foriegn Shell Banks from ____?
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.
Maintaining correspondent accoutnts at US Financial Institutions (USA Patriot Act)
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
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.

38. Mutual Fund
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
A fund - offered by an investment company - that offers shares while investing the capital in diversified securities of other companies.
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.
www.artloss.com

39. FATF Recommendation 32
The grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
Countries should maintain comprehensive statistics to gauge effectiveness of their AML and CTF efforts.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.

40. FATF Recommendation 20
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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.
The FIU of Russia
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.

41. Scheme
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.
Combines funds from various members and users them to trade in futures or options contracts.
Quite simply - a plan. While in the US - this term is often associated with a nefarious plan - it should NOT be assumed to be evil - especially as it may appear on the ACAMS exam.
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.

42. The Palemo Convention
The opposing part of a transaction or trade.
a Sr Management level
The UN Convention against Transnational Organized Crime [Adopted 12/2000].
Quite simply - a plan. While in the US - this term is often associated with a nefarious plan - it should NOT be assumed to be evil - especially as it may appear on the ACAMS exam.

43. FATF Recommendation 19
Intergovernmental Action Group against Money Laundering in Africa
Financial Action Task Force on Money Laundering in South America
Countries should have a central authority to collect suspicious activity and international currency reports. Should have secure - computerized data base.
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.

44. Structuring is a common technique in jurisdictions that...
The terms of such exchanges - the persons subject to being exchanged - and the crimes for which exchanges will be permitted.
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
have in place compulsory currency reporting requirements.

45. How does the Egmont group help its members?
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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 grantor (the owner of the property) - a beneficiary and the trustee (the manager of the property).
Competent authorities should be provided with adequate financial - human and technological resources. Personnel should be of high integrity.

46. FATF Recommendation 12
Competent authorities should have powers of subpoena - search and seizure.
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.
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.
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.

47. Convertible Bond
Futures contracts - forwards - swaps or options.
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.
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.

48. The USA Patriot Act enacted a number of statutory provisions that bear directly on the procedures US financial institutions must follow in connection with their...
Money Laundering and Tax Evasion
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.
foreign correspondent banks
Person who - for compensation - provides advice on securities and investments and manages client assets.

49. What is important about the US Money Laundering Control Act (MCLA)?
tipped off that they are being investigated.
USD/EUR 15 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
It was the first law in any country to make money laundering a crime.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.

50. What does theInternationa Narcotics Control Strategy Report (INCSR) entail?
Intergovernmental Action Group against Money Laundering in Africa
When residents are prevented from benefiting from a tax-regime or when non-residents are prevented from accessing the domestic market.
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 knowledge can be inferred. Additionally - legal persons should be subject to theses laws.