CAMS CERTIFICATION EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ACTUAL COMPLETE EXAM|
ALREADY GRADED A+||JUST RELEASED
money laundering ✔Correct Answer-makes dirty money look clean; The process of concealing or
disguising the existence, source, movement, destination or illegal application of illicitly derived
property or funds to make them appear legitimate. It usually involves a three-part system: placement
of funds into a financial system, layering of transactions to disguise the source, ownership and
location of the funds and integration of the funds into society in the form of holdings that appear
legitimate. The definition of money laundering varies in each country where it is recognized as a
crime.
predicate crime ✔Correct Answer-a crime which is a component of a larger crime that leads to
money laundering; Specified unlawful activities whose proceeds, if involved in the subject
transaction, can give rise to prosecution for money laundering. Most anti-money laundering laws
contain a wide definition or listing of such underlying crimes. Predicate crimes are sometimes
defined as felonies or "all offenses in the criminal code."
FATF ✔Correct Answer-Financial Action Task Force; FATF was chartered in 1989 by the Group of
Seven industrial nations to foster the establishment of national and global measures to combat
money laundering. It is an international policy making body that sets anti-money laundering
standards and counter-terrorist financing measures worldwide. Its Recommendations do not have
the force of law. Thirty-five countries and two international organizations are members. In 2012, FATF
substantially revised its 40 + 9 Recommendations and reduced them to 40. FATF develops annual
typology reports showcasing current money laundering and terrorist financing trends and methods.
Palermo Convention ✔Correct Answer-UN Convention to prevent international crime
willful blindness ✔Correct Answer-equal to knowledge of crime; turning a blind eye; Legal principle
that operates in money laundering cases in the U.S. and is defined by courts as the "deliberate
avoidance of knowledge of the facts" or "purposeful indifference." Courts have held that willful
blindness is the equivalent of actual knowledge of the illegal source of funds or of the intentions of a
customer in a money laundering transaction.
3 stages of money laundering ✔Correct Answer-Placement, Layering, Integration
placement ✔Correct Answer-physical putting money into financial system; The first phase of the
money laundering process: The physical disposal of proceeds derived from illegal activity.
layering ✔Correct Answer-convert proceeds into another form; The second phase of the classic
three-step money laundering process between placement and integration, layering involves
distancing illegal proceeds from their source by creating complex levels of financial transactions
designed to disguise the audit trail and to provide anonymity.
integration ✔Correct Answer-laundered proceeds into seemingly good things; The integration
phase, often referred to as the third and last stage of the classic money laundering process, places
laundered funds back into the economy by re-entering the funds into the financial system and giving
them the appearance of legitimacy.
,Hawala ✔Correct Answer-informal banking system based on trust; four people are involved in the
transaction, one buyer, two hawala brokers, and one seller
hundi ✔Correct Answer-See Hawala.
fei chien ✔Correct Answer-informal banking system in China based on trust
Economic and social consequences of ML ✔Correct Answer-1. Increased exposure to organized
crime and corruption
2. Undermining the legitimate private sector
3. Weakening financial institutions
4. Dampening effect on foreign investments
5. Loss of control of, or mistakes in decisions regarding economic policy
6. economic distortion and instability
7. loss of tax revenue
8. risks to privatization efforts
9. reputation risk for the country
10. risk of international sanctions
11. social costs
12. reputational risk
13. operational risk
14. legal risk
15. concentration risk
FinCEN ✔Correct Answer-Financial Crimes Enforcement Network, the entity that a SAR would be
reported to.
FIU ✔Correct Answer-Financial Intelligence Unit
FCA ✔Correct Answer-The Financial Conduct Authority - a financial regulatory body in the United
Kingdom, but operates independently of the UK Government, and is financed by charging fees to
members of the financial services industry. It focuses on the regulation of conduct by both retail and
wholesale financial services firms.
Yates Memo ✔Correct Answer-reminds prosecutors that criminal and civil investigations into
corporate misconduct should also focus on individual who perpetrated the wrongdoing
MLRO ✔Correct Answer-money laundering reporting officer; A term used in various international
rules to refer to the person responsible for overseeing a firm's anti-money laundering activities and
program and for filing reports of suspicious transactions with the national FIU. The MLRO is the key
person in the implementation of antimoney laundering strategies and policies.
DFS ✔Correct Answer-Department of Financial Services
Senior Managers Regime ✔Correct Answer-requires a financial institution to give explicit
responsibility to a senior manager
BSA ✔Correct Answer-Bank Secrecy Act; The primary U.S. anti-money laundering regulatory
statute (Title 31, U.S. Code Sections 53115355) enacted in 1970 and most notably amended by the
USA PATRIOT Act in 2001. Among other measures, it imposes money laundering controls on financial
, institutions and many other businesses, including the requirement to report and to keep records of
various financial transactions.
OFAC ✔Correct Answer-Office of Foreign Assets Control
MSB ✔Correct Answer-Money Services Business; A person (whether a natural or legal person)
engaged in any of the following activities where it exceeds the applicable regulatory threshold, at
which point the person is generally deemed to be a financial institution subject to AML obligations:
1. Dealing in foreign exchange
2. Check cashing
3. Issuing or selling traveler's checks or money orders
4. Providing or selling prepaid access
5. Money transmission
ACH ✔Correct Answer-Automatic Clearing House; An electronic banking network that processes
large volumes of both credit and debit transactions that originate in batches. ACH credit transfers
include direct deposit payroll payments and payments to contractors and vendors. ACH debit
transfers include consumer payments on insurance premiums, mortgage loans and other kinds of
expenses
Fedwire ✔Correct Answer-Electronic funds transfer system owned and operated by the Federal
Reserve Banks. It serves as a same-day settlement procedure for electronic federal tax depositors.
SWIFT ✔Correct Answer-Society for Worldwide Interbank Financial Telecommunication
CHIPS ✔Correct Answer-Clearing House Interbank Payment System
RDC ✔Correct Answer-Remote Deposit Capture
correspondent banking ✔Correct Answer-The provision of banking services by one bank (the
"correspondent bank") to another bank (the "respondent bank"). Large international banks typically
act as correspondents for thousands of other banks around the world. Respondent banks may be
provided with a wide range of services, including cash management (e.g., interest-bearing accounts
in a variety of currencies), international wire transfers of funds, check clearing services, payable-
through accounts and foreign exchange services.
NCUA ✔Correct Answer-National Credit Union Administration
PTAs ✔Correct Answer-payable through accounts; when customer can do wire transfer through
correspondent bank rather than respondent bank
concentration accounts ✔Correct Answer-aggregating funds from several locations into one
centralized account
private banking ✔Correct Answer-provides highly personalized and confidential products and
services to wealthy clients at fees that are often based on "assets under management."
PIC ✔Correct Answer-private investment company; Also known as a personal investment company,
a PIC is a type of corporation that is often established in an offshore jurisdiction with tight secrecy
laws to protect the privacy of its owners. In some jurisdictions, an international business company or
exempt company is referred to as a private investment company.
100% VERIFIED ANSWERS|ACTUAL COMPLETE EXAM|
ALREADY GRADED A+||JUST RELEASED
money laundering ✔Correct Answer-makes dirty money look clean; The process of concealing or
disguising the existence, source, movement, destination or illegal application of illicitly derived
property or funds to make them appear legitimate. It usually involves a three-part system: placement
of funds into a financial system, layering of transactions to disguise the source, ownership and
location of the funds and integration of the funds into society in the form of holdings that appear
legitimate. The definition of money laundering varies in each country where it is recognized as a
crime.
predicate crime ✔Correct Answer-a crime which is a component of a larger crime that leads to
money laundering; Specified unlawful activities whose proceeds, if involved in the subject
transaction, can give rise to prosecution for money laundering. Most anti-money laundering laws
contain a wide definition or listing of such underlying crimes. Predicate crimes are sometimes
defined as felonies or "all offenses in the criminal code."
FATF ✔Correct Answer-Financial Action Task Force; FATF was chartered in 1989 by the Group of
Seven industrial nations to foster the establishment of national and global measures to combat
money laundering. It is an international policy making body that sets anti-money laundering
standards and counter-terrorist financing measures worldwide. Its Recommendations do not have
the force of law. Thirty-five countries and two international organizations are members. In 2012, FATF
substantially revised its 40 + 9 Recommendations and reduced them to 40. FATF develops annual
typology reports showcasing current money laundering and terrorist financing trends and methods.
Palermo Convention ✔Correct Answer-UN Convention to prevent international crime
willful blindness ✔Correct Answer-equal to knowledge of crime; turning a blind eye; Legal principle
that operates in money laundering cases in the U.S. and is defined by courts as the "deliberate
avoidance of knowledge of the facts" or "purposeful indifference." Courts have held that willful
blindness is the equivalent of actual knowledge of the illegal source of funds or of the intentions of a
customer in a money laundering transaction.
3 stages of money laundering ✔Correct Answer-Placement, Layering, Integration
placement ✔Correct Answer-physical putting money into financial system; The first phase of the
money laundering process: The physical disposal of proceeds derived from illegal activity.
layering ✔Correct Answer-convert proceeds into another form; The second phase of the classic
three-step money laundering process between placement and integration, layering involves
distancing illegal proceeds from their source by creating complex levels of financial transactions
designed to disguise the audit trail and to provide anonymity.
integration ✔Correct Answer-laundered proceeds into seemingly good things; The integration
phase, often referred to as the third and last stage of the classic money laundering process, places
laundered funds back into the economy by re-entering the funds into the financial system and giving
them the appearance of legitimacy.
,Hawala ✔Correct Answer-informal banking system based on trust; four people are involved in the
transaction, one buyer, two hawala brokers, and one seller
hundi ✔Correct Answer-See Hawala.
fei chien ✔Correct Answer-informal banking system in China based on trust
Economic and social consequences of ML ✔Correct Answer-1. Increased exposure to organized
crime and corruption
2. Undermining the legitimate private sector
3. Weakening financial institutions
4. Dampening effect on foreign investments
5. Loss of control of, or mistakes in decisions regarding economic policy
6. economic distortion and instability
7. loss of tax revenue
8. risks to privatization efforts
9. reputation risk for the country
10. risk of international sanctions
11. social costs
12. reputational risk
13. operational risk
14. legal risk
15. concentration risk
FinCEN ✔Correct Answer-Financial Crimes Enforcement Network, the entity that a SAR would be
reported to.
FIU ✔Correct Answer-Financial Intelligence Unit
FCA ✔Correct Answer-The Financial Conduct Authority - a financial regulatory body in the United
Kingdom, but operates independently of the UK Government, and is financed by charging fees to
members of the financial services industry. It focuses on the regulation of conduct by both retail and
wholesale financial services firms.
Yates Memo ✔Correct Answer-reminds prosecutors that criminal and civil investigations into
corporate misconduct should also focus on individual who perpetrated the wrongdoing
MLRO ✔Correct Answer-money laundering reporting officer; A term used in various international
rules to refer to the person responsible for overseeing a firm's anti-money laundering activities and
program and for filing reports of suspicious transactions with the national FIU. The MLRO is the key
person in the implementation of antimoney laundering strategies and policies.
DFS ✔Correct Answer-Department of Financial Services
Senior Managers Regime ✔Correct Answer-requires a financial institution to give explicit
responsibility to a senior manager
BSA ✔Correct Answer-Bank Secrecy Act; The primary U.S. anti-money laundering regulatory
statute (Title 31, U.S. Code Sections 53115355) enacted in 1970 and most notably amended by the
USA PATRIOT Act in 2001. Among other measures, it imposes money laundering controls on financial
, institutions and many other businesses, including the requirement to report and to keep records of
various financial transactions.
OFAC ✔Correct Answer-Office of Foreign Assets Control
MSB ✔Correct Answer-Money Services Business; A person (whether a natural or legal person)
engaged in any of the following activities where it exceeds the applicable regulatory threshold, at
which point the person is generally deemed to be a financial institution subject to AML obligations:
1. Dealing in foreign exchange
2. Check cashing
3. Issuing or selling traveler's checks or money orders
4. Providing or selling prepaid access
5. Money transmission
ACH ✔Correct Answer-Automatic Clearing House; An electronic banking network that processes
large volumes of both credit and debit transactions that originate in batches. ACH credit transfers
include direct deposit payroll payments and payments to contractors and vendors. ACH debit
transfers include consumer payments on insurance premiums, mortgage loans and other kinds of
expenses
Fedwire ✔Correct Answer-Electronic funds transfer system owned and operated by the Federal
Reserve Banks. It serves as a same-day settlement procedure for electronic federal tax depositors.
SWIFT ✔Correct Answer-Society for Worldwide Interbank Financial Telecommunication
CHIPS ✔Correct Answer-Clearing House Interbank Payment System
RDC ✔Correct Answer-Remote Deposit Capture
correspondent banking ✔Correct Answer-The provision of banking services by one bank (the
"correspondent bank") to another bank (the "respondent bank"). Large international banks typically
act as correspondents for thousands of other banks around the world. Respondent banks may be
provided with a wide range of services, including cash management (e.g., interest-bearing accounts
in a variety of currencies), international wire transfers of funds, check clearing services, payable-
through accounts and foreign exchange services.
NCUA ✔Correct Answer-National Credit Union Administration
PTAs ✔Correct Answer-payable through accounts; when customer can do wire transfer through
correspondent bank rather than respondent bank
concentration accounts ✔Correct Answer-aggregating funds from several locations into one
centralized account
private banking ✔Correct Answer-provides highly personalized and confidential products and
services to wealthy clients at fees that are often based on "assets under management."
PIC ✔Correct Answer-private investment company; Also known as a personal investment company,
a PIC is a type of corporation that is often established in an offshore jurisdiction with tight secrecy
laws to protect the privacy of its owners. In some jurisdictions, an international business company or
exempt company is referred to as a private investment company.
