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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. What is the Wolfsberg group?
An association of global financial institutions that issues guidelines is such areas as correspondent banking - private banking - terrorist financing etc.
Strengthen customer identification measures in iternational and domestic wire transfers.
Solicits potential customers and issues the credit cards.
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.

2. What does FIU do?
In many major money laundering operations - it is not unusual to find a complicit employee in financial institution.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
The financial institution can become subject to lawsuits from the failure to observe mandatory KYC standards or from the failure to practise due diligence.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.

3. Boiler Room
Foreign Corrupt Practices Act
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.
An account that does not show activity other than the posting of interest or account maintenance fees.
Impose AML requirements on alternative remittance systems.

4. Portfolio Manager
Financial institutions should be required - by law or regulation - to report suspicious activity to their national FIU.
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.
High-speed matching of known or suspected patterns in very large DB's using recognition algorithms.
bear the mark 'APOSTILLE'

5. What is the significance of 'Non-Financial Trades and Businesses' in realtion to Money Laundering?
Letters Rogatory
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.
Because they are accounts through which funds are transferred and commingled without personally identifying the originator.
They are businesses such as ariplane - automobile and boat dealers - lawyers - jewelers - real estate brokers and others that are subjec to BSA regulations (US).

6. Who appoints a 'Federal Receiver' (US)?
A prepaid card that is linked to the global funds network - which can allow for worldwide ATM with-drawls and purchases with many merchants.
A US Federal Court
Countering the Financing of Terrorism (Counter Terrorist Financing).
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.

7. Who issues the Internationa Narcotics Control Strategy Report (INCSR) and how often?
People who help move the billions of dollars drug traffickers earn around the world.
They can accrue value as the price of the underlying stock rises.
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 US State Dept issues the report annually.

8. Guaranteed Introducing Broker

9. FATF Recommendation 8
Take immediate steps to ratify and implement the UN instruments.
The FIU of the UK
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Financial institutions should pay to any threats from new or developing technologies - especially with non f2f relationships.

10. (Credit Card) Third-Party processor
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
Firm that contracts with issuing or acquiring banks to provide transaction processing and other credit-card related services for the banks.

11. UK courts view on 'Suspicion'
Ensure that entities - in particular non-profit organizations - cannot be misused to finance terrorism.
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.
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.
Intergovernmental Action Group against Money Laundering in Africa

12. FATF Recommendation 7

13. Investigative Log
Berlin- based - non-governmental organization with goal of improving government accountability and curbing national and international corruption.
Combines funds from various members and users them to trade in futures or options contracts.
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.
No.

14. FATF Recommendation 4
Countries should ensure that secrecy laws do NOT inhibit implementation of these Recommendations.
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.
www.artloss.com
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.

15. Cash Equivalent

16. What does FIU do beyond what FIU does?

17. What is the goal of FSAP?
Processes transactions for merchants who accept credit cards.
Helps to identify financial system strengths and vulnerabilities and to reduce the potential for crisis.
Countries should ensure that there is adequate - accurate and timely information on the beneficial ownership and control of legal persons.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.

18. FATF Recommendation 34
no regulatory power or function
2% - 5% ($590B - $1.5T)
All admininstrative and law enforcemnt authorities concerned wiht combating money laundering and terrorist financing - including the FIU and supervisors.
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.

19. The Vienns Convention
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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.
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.

20. FATF Recommendation 9
People who help move the billions of dollars drug traffickers earn around the world.
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.
Freeze and confiscate terrorist assets.
An order from government authority requiring a financial institution to provide transaction information on a suspect account for a specified period of time.

21. FATF Recommendation 24
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.
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.
Designated non-financial businesses and professions should be subject to regulatory and supervisory measures. Casinos should prevent criminal ownership - operations or management.
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.

22. CFT
Penny Stocks
Countering the Financing of Terrorism (Counter Terrorist Financing).
Goods such as food - grains and metals that are usually traded in large amounts on a commodities exchange - usually through future contracts.
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.

23. Identification data
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Reliable - independent source of documents - data or information.
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.
As 'felonies' or 'all offenses in the criminal code'.

24. FATF Recommendation 20
Any item that a bank is wiling to accept for immediate - provisional credit to a customer's account - instantly increasing the account's balance.
Financial institutions should have adequate supervision and regulation. Ensure no criminal element in position on control. Money transfer/exchangers should be registered and subjected to monitoring.
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 apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.

25. Free Look Period
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.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.
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.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.

26. Fraud
The FIU of the UK
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.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.
Middle East and North Africa Financial Action Task Force

27. What does a 'Commission Rogatoire' normally specify?
USD/EUR 3 -000 (Interpretive Note to Reommendations 5 - 12 and 16)
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.
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.
Countries should recognize money laundering as an extraditable offense.

28. FATF Sepcial Recommendation on Terrorist Financing -- SR Two
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.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Take immediate steps to ratify and implement the UN instruments.
Criminalize the financing of terrorism - terrorist acts and terrorist organisations.

29. Convertible Preferred
Preferred stocks that includes an option for the holder to convert it into common stock at a specified covnersion rate.
Financial institutions should have AML/CFT programs that include approved policies - employee screenings & ongoing training and an audit function to test it all.
General recommendations for client acceptance - updating client files - practices when identifying unusual or suspicious activity - monitoring - control responsibilities - reporting - education and records retention.
The world's largest private DB of stolen art.

30. FATF Recommendation 18
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.
Strengthen customer identification measures in iternational and domestic wire transfers.
The FIU of the UK
A contemporaneous record of the steps - observations - evidence - findings and decisions of an investigation.

31. What is a 'Trust'?
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.
As a financial institution service that is very vulnerable to money laundering.
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.
Countering the Financing of Terrorism (Counter Terrorist Financing).

32. Wire Transfers
Electronic transmissions of funds between financial institutions on behalf of themselves or their customers.
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.
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.
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.

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

34. Penny Stocks
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.
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.
Should give special attention to relationships or transactions of people - companies or financial institutions from countries showing little regard for these Recommendations.
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.

35. 'Kiting' via credit card
The transfer of physical - hard-copy security certificates to book entry credits of a security holder's interest.
Countries should apply Recommendations to any business or profession that poses a money laundering or terrorist financing risk.
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 merchant submits a saled transaction on his personal bankcard account to ontain cash advances through their business.

36. Foriegn Shell Banks are vehicles for ______ & ______?
Competent authorities should provide guidelines in applying national AML/CFT measures - especially for detecting and reporting suspicious activity.
foreign correspondent banks
Money Laundering and Tax Evasion
As a financial institution service that is very vulnerable to money laundering.

37. Why is 'Know Your Customer's Customer' important?
It conducts investigations in support of a government's confiscation or seizure efforts.
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.
Respondent banks may be used by other banks and customers to conduct transactions through a correspondent account.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.

38. 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...
It was the first law in any country to make money laundering a crime.
foreign correspondent banks
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.
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).

39. What is one of the cental stragetic tools required for effective action against money laundering?
Confiscation
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.
Terrorism and Terrorist Financing
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.

40. Vital Service Providers (VSPs)
Countries should ensure that there is adequate - accurate and timely information on express trusts - including information on the settlor - trustee and beneficiaries.
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.
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.
People who help move the billions of dollars drug traffickers earn around the world.

41. Abusive Squeezes

42. Cash Log

43. 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...
no regulatory power or function
The CDD and record-keeping requirements (of Rec 5 - 6 - 8 & 11) apply to non-financial businesses and professions.
Countries should recognize money laundering as an extraditable offense.
Ad interbank transmittal form - resembling a deposit slip - used to accompany cash and cash equivalent items sent from one bank to another.

44. Dormant Account
The UN Convention against Illicit Trafficking in Narcotic drugs and Pyshotropic substances [Adopted 12/88].
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).
Financial instrument whose price is realted to the underlying commodity - currency - economic variable - financial istrument or security.
An account that does not show activity other than the posting of interest or account maintenance fees.

45. USA Patriot Act Section 312 'Offshore Bank'
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]
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 contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Normally seen as non-violent or involving 'business-related' schemes rather than violent or threat or violence crimes.

46. FATF Recommendation 14
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.
With respect to STR/SAR reporting - financial institutions should be afforded safe harbor - yet barred from any unauthorized disclosures.
It analyzes and processes information and disseminates it to appropriate government authorities in support of AML efforts and financial crime investigations.
Intentional misrepresentation - concealment or omission of the truth for the purpose of deception or manipulation to ther detriment of a person or organization.

47. 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...
that appear to be linked
October 1980. The instigation of Basel Committee on Banking supervision (with which the group maintains close contact).
Countries should ensure that their competent authorities provide the widest possible range of international cooperation to their foreign counterparts.
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.

48. May a shell bank maintain a correspondent account with a US bank?
No.
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.
Countries should ensure that knowledge can be inferred. Additionally - legal persons should be subject to theses laws.
Entities such as American Express - Master Card and VISA - which license member banks to issue bankcards - authorize merchants to accept those cards - or both.

49. What does Financial Sector AssessmentProgram (FSAP) do?
To allow for mutual assistance in legal proceedings and access to documents and witnesses and other legal and judicial assistance in the respective countries.
A corporation - often established in an offshore jurisdiction with tight secrecy laws to protect the financial privacy of its owners.
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).
Through the use of experts - the program optimizes expert resources - reduces duplication of efforts and provides uniform advice in financial sector work.

50. Wholesale Banking
To promulgate good practices in countering money laundering and to give practical assistance in interpreting the UK Money Laundering Regulations and laws
Expatriates sending money back to their home country or by other individuals sending money abroad.
A contractual provision that allows the contract owner the right to return the contract within a specified period for a refund.
Banking services between merchant banks and other financial institutions.