ACAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ALREADY GRADED A+
1. Describe the
• Placement is the physical disposal of cash or other
three phases
assets derived from criminal activity.
of money
• Layering is the separation of illicit proceeds from
launder- ing.
their source by layers of financial transactions intended to
conceal the origin of the proceeds.
• Integration is supplying apparent legitimacy to illicit
wealth through the re‐entry of the funds into the economy
in what appears to be normal business or personal
2. What are the transactions.
two main
• By their nature, correspondent banking
rea- sons
relationships create a situation in which a financial
correspon-
institution carries out financial transactions on behalf of
dent
customers of another institution. This indirect
banking is relationship means that the correspondent bank provides
vul-
services for individuals or entities for which it has neither
verified
nerable to money the identities nor obtained any first‐hand knowledge, and
laundering? institu- tion.
3. Describe four
types of risk
as- sociated
with money
launder- ing
faced by a
financial
, ACAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ALREADY GRADED A+
• The they are unusual.
amount of
money that • Reputational risk is described as the potential that adverse
flows through publicity regarding an organization's business practices and
correspondent associations, whether accurate or not, will cause a loss of public
accounts can confidence in the integrity of the organization.
pose a • Operational risk is described as the potential for loss
significant resulting from inadequate internal processes, personnel or
threat to systems or from external events.
financial • Legal risk is the potential for lawsuits, adverse judgments,
institutions, as unenforceable contracts, fines and penalties generating losses,
they process increased expenses for an
large volumes
of transactions
for their
customers'
customers.
This makes it
more diflcult
to identify the
suspect
transactions,
as the
financial
institution
generally does
not have the
information on
the actual
parties
conducting the
transaction to
know whether
, ACAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ALREADY GRADED A+
organization, or even the
closure of the organization.
• Concentration risk is the potential for loss
resulting from too much credit or loan exposure
to one borrower or group of borrowers.
4. Identify and Section 312 requires institutions must set up risk based due
de- scribe the diligence to mitigate the money laundering risks posed by
three foreign financial institutions.
sections of Section 313, which prohibits U.S. financial institutions from
the USA opening or maintaining correspondent accounts for foreign
Patriot shell banks and requires them to take "reasonable steps" to
Act ensure that a correspondent account of a foreign bank is
concerning not being used indirectly to provide banking services to a
due diligence shell bank.
U.S. financial
in- stitutions
need
to perform for re- Section 319, which requires U.S. financial institutions to maintain
lationships records with the names and address of the owners of
with foreign foreign banks for which they maintain correspondent
corre- accounts.
spondent
banking cus-
tomers.
5. What are the eco- • Loss of control of, or mistakes in, decisions regarding economic
nomic effects of policy,
money • Economic distortion and instability,
launder- ing? • Loss of tax revenue,
• Risks to privatization ettorts,
• Reputation risk for the country, and
• Social costs.
, ACAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ALREADY GRADED A+
6. What is a concen- Concentration accounts are internal accounts established to
tration facilitate the processing and settlement of multiple or
account? individual customer transactions within the bank,
usually on the same day.
100% VERIFIED ANSWERS|ALREADY GRADED A+
1. Describe the
• Placement is the physical disposal of cash or other
three phases
assets derived from criminal activity.
of money
• Layering is the separation of illicit proceeds from
launder- ing.
their source by layers of financial transactions intended to
conceal the origin of the proceeds.
• Integration is supplying apparent legitimacy to illicit
wealth through the re‐entry of the funds into the economy
in what appears to be normal business or personal
2. What are the transactions.
two main
• By their nature, correspondent banking
rea- sons
relationships create a situation in which a financial
correspon-
institution carries out financial transactions on behalf of
dent
customers of another institution. This indirect
banking is relationship means that the correspondent bank provides
vul-
services for individuals or entities for which it has neither
verified
nerable to money the identities nor obtained any first‐hand knowledge, and
laundering? institu- tion.
3. Describe four
types of risk
as- sociated
with money
launder- ing
faced by a
financial
, ACAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ALREADY GRADED A+
• The they are unusual.
amount of
money that • Reputational risk is described as the potential that adverse
flows through publicity regarding an organization's business practices and
correspondent associations, whether accurate or not, will cause a loss of public
accounts can confidence in the integrity of the organization.
pose a • Operational risk is described as the potential for loss
significant resulting from inadequate internal processes, personnel or
threat to systems or from external events.
financial • Legal risk is the potential for lawsuits, adverse judgments,
institutions, as unenforceable contracts, fines and penalties generating losses,
they process increased expenses for an
large volumes
of transactions
for their
customers'
customers.
This makes it
more diflcult
to identify the
suspect
transactions,
as the
financial
institution
generally does
not have the
information on
the actual
parties
conducting the
transaction to
know whether
, ACAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ALREADY GRADED A+
organization, or even the
closure of the organization.
• Concentration risk is the potential for loss
resulting from too much credit or loan exposure
to one borrower or group of borrowers.
4. Identify and Section 312 requires institutions must set up risk based due
de- scribe the diligence to mitigate the money laundering risks posed by
three foreign financial institutions.
sections of Section 313, which prohibits U.S. financial institutions from
the USA opening or maintaining correspondent accounts for foreign
Patriot shell banks and requires them to take "reasonable steps" to
Act ensure that a correspondent account of a foreign bank is
concerning not being used indirectly to provide banking services to a
due diligence shell bank.
U.S. financial
in- stitutions
need
to perform for re- Section 319, which requires U.S. financial institutions to maintain
lationships records with the names and address of the owners of
with foreign foreign banks for which they maintain correspondent
corre- accounts.
spondent
banking cus-
tomers.
5. What are the eco- • Loss of control of, or mistakes in, decisions regarding economic
nomic effects of policy,
money • Economic distortion and instability,
launder- ing? • Loss of tax revenue,
• Risks to privatization ettorts,
• Reputation risk for the country, and
• Social costs.
, ACAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ALREADY GRADED A+
6. What is a concen- Concentration accounts are internal accounts established to
tration facilitate the processing and settlement of multiple or
account? individual customer transactions within the bank,
usually on the same day.
