CAMS - Certified Anti-Money
Laundering Specialist fully solved
Automated Clearing House (ACH) - ANS ✔✔an electronic system for transferring money
between banks
ACH - ANS ✔✔Automatic Clearing House
ATM - ANS ✔✔Automated Teller Machine
Society for Worldwide Interbank Financial Telecommunication - ANS ✔✔SWIFT
Money launderers can use electronic transfer of funds in what stage of ML? - ANS ✔✔Layering
CHIPS - ANS ✔✔Clearing House Interbank Payment System
RDC - ANS ✔✔Remote Deposit Capture
What is an RDC? - ANS ✔✔a product offered b banks that allows customers to scan a check and
transmit an electronic image to the bank for deposit
What is Correspondent Banking - ANS ✔✔a provision of banking services by one bank to
another bank, whereby one bank acts as the agent of another bank in a foreign country
What is the highest risk related to RDC? - ANS ✔✔The most prominent risk is Fraud, though it is
also used in ML
, What is a respondent bank? - ANS ✔✔A local, or respondent bank has customers who want
banking services in a foreign country, so it contracts with a foreign corresponding bank to
provide those services
What is a risk of correspondent banking? - ANS ✔✔because it's an indirect service, the
individuals/entities that it services hasn't been verified first hand
Why is correspondent banking vulnerable to money laundering? - ANS ✔✔it processes large
volumes of transactions and it does not know the customers of the respondent bank it's
servicing
How can a bank safeguard itself against correspondent banking risks? - ANS ✔✔1. Identify the
respondent bank's owners
2. understand the nature of its regulatory oversight
3. Conduct its own CDD on the respondent bank and look at factors such as geographic risk,
customer base etc.
What is a risk of correspondent banking? - ANS ✔✔Some respondent banks are, themselves,
correspondents to another bank - which is a practice called nesting
What is 'nesting'? - ANS ✔✔The practice where a respondent bank provides DOWNSTREAM
correspondent services to another financial institution. The correspondent bank must provide
EDD on the respondent's AML program to mitigate.
PTA - ANS ✔✔Payable through accounts
What is a PTA? - ANS ✔✔where a customer at a a respondent bank can:
- conduct their own transactions
Laundering Specialist fully solved
Automated Clearing House (ACH) - ANS ✔✔an electronic system for transferring money
between banks
ACH - ANS ✔✔Automatic Clearing House
ATM - ANS ✔✔Automated Teller Machine
Society for Worldwide Interbank Financial Telecommunication - ANS ✔✔SWIFT
Money launderers can use electronic transfer of funds in what stage of ML? - ANS ✔✔Layering
CHIPS - ANS ✔✔Clearing House Interbank Payment System
RDC - ANS ✔✔Remote Deposit Capture
What is an RDC? - ANS ✔✔a product offered b banks that allows customers to scan a check and
transmit an electronic image to the bank for deposit
What is Correspondent Banking - ANS ✔✔a provision of banking services by one bank to
another bank, whereby one bank acts as the agent of another bank in a foreign country
What is the highest risk related to RDC? - ANS ✔✔The most prominent risk is Fraud, though it is
also used in ML
, What is a respondent bank? - ANS ✔✔A local, or respondent bank has customers who want
banking services in a foreign country, so it contracts with a foreign corresponding bank to
provide those services
What is a risk of correspondent banking? - ANS ✔✔because it's an indirect service, the
individuals/entities that it services hasn't been verified first hand
Why is correspondent banking vulnerable to money laundering? - ANS ✔✔it processes large
volumes of transactions and it does not know the customers of the respondent bank it's
servicing
How can a bank safeguard itself against correspondent banking risks? - ANS ✔✔1. Identify the
respondent bank's owners
2. understand the nature of its regulatory oversight
3. Conduct its own CDD on the respondent bank and look at factors such as geographic risk,
customer base etc.
What is a risk of correspondent banking? - ANS ✔✔Some respondent banks are, themselves,
correspondents to another bank - which is a practice called nesting
What is 'nesting'? - ANS ✔✔The practice where a respondent bank provides DOWNSTREAM
correspondent services to another financial institution. The correspondent bank must provide
EDD on the respondent's AML program to mitigate.
PTA - ANS ✔✔Payable through accounts
What is a PTA? - ANS ✔✔where a customer at a a respondent bank can:
- conduct their own transactions
