CAMS EXAM WITH ALL CORRECT & 100% VERIFIED
ANSWERS|ACTUAL COMPLETE EXAM|ALREADY
GRADED A+
A written statement given under oath before an officer of the court, notary public, or other
authorized person. It is commonly used as the factual basis for an application for a search,
arrest or seizure warrant. ✔Correct Answer-Affidavit
Underground banking or Informal Value Transfer Systems (IVTS). Often associated with ethnic
groups from the Middle East, Africa or Asia, and commonly involves the transfer of values
among countries outside of the formal banking system. The remittance entity can be an ordinary
shop selling goods that has an arrangement with a correspondent business in another country.
There is usually no physical movement of currency and a lack of formality with regard to
verification and record- keeping. The money transfer takes place by coded information that is
passed through chits, couriers, letters, faxes, emails, text messages, or online chat systems,
followed by some form of telecommunications confirmations. ✔Correct Answer-Alternative
Remittance System (ARS)
A compendium of analyses of anti-money laundering laws and regulations, including two
general classes of money laundering control measures—domestic laws and international
cooperation—as well as information on national contacts and authorities. A secure, multilingual
database, AMLID is an important reference tool for law enforcement officers involved in
cross-jurisdictional work. ✔Correct Answer-Anti-Money Laundering International Database
(AMLID)
The system designed to assist institutions in their fight against money laundering and terrorist
financing. In many jurisdictions, government regulations require financial institutions, including
banks, securities dealers and money services businesses, to establish such programs. At a
minimum, the anti-money laundering program should include:
1. Written internal policies, procedures and controls;
2. A designated AML compliance officer;
3. On-going employee training; and
4. Independent review to test the program ✔Correct Answer-Anti-Money Laundering Program
A court order directing a law enforcement officer to seize and detain a particular person and
require them to provide an answer to a complaint or otherwise appear in court. ✔Correct Answer-
Arrest Warrant
A Financial Action Task Force (FATF)-style regional body consisting of jurisdictions in the
Asia/Pacific Region. ✔Correct Answer-Asia/Pacific Group on Money Laundering (APG)
A process that includes reorganizing how assets are held so as to make them less vulnerable
should a claim be made against a person. Asset protection is also a term used by tax planners
for measures taken to protect assets from taxation in other jurisdictions. ✔Correct Answer-Asset
Protection
A special form of irrevocable trust usually created (i.e., settled) offshore for the principal
purposes of preserving and protecting part of one's wealth from creditors. Title to the asset is
,transferred to a person named the trustee. APTs are generally used for asset protection and are
usually tax neutral. Their ultimate function is to provide for the beneficiaries. Some proponents
advertise APTs as allowing foreign trustees to ignore U.S. court orders and to simply transfer
the trust to another jurisdiction in response to legal action threatening the trust's assets. ✔Correct
Answer-Asset Protection Trusts (APTs)
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. ✔Correct Answer-
Automated Clearing House (ACH)
An electronic banking outlet that allows customers to complete basic transactions without the
assistance of a bank employee. ATMs generally dispense cash, allow check and cash deposits
and transfers to be made, as well as balance inquiries. ✔Correct Answer-Automated Teller
Machine (ATM)
Vulnerable to money laundering because it represents a reputable international monetary
instrument drawn on a reputable institution, and is often made payable—in cash— upon
presentation
and at the issuing institution's account in another country. ✔Correct Answer-Bank Draft
Refers to laws and regulations in countries that prohibit banks from disclosing information
about an account—or even revealing its existence—without the consent of the account holder.
Impedes the flow of information across national borders among financial institutions and their
supervisors. One of FATF's 40 Recommendations states that countries should ensure that
secrecy laws do not inhibit the implementation of the FATF Recommendations. ✔Correct Answer-
Bank Secrecy
The primary U.S. anti-money laundering regulatory statute (Title 31, U.S. Code Sections 5311-
5355) 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. ✔Correct Answer-Bank Secrecy Act (BSA)
A program that U.S.-based financial institutions—as defined by the Bank Secrecy Act—are
required to establish and implement in order to control money laundering and related financial
crimes. The program's components include at a minimum: the development of internal policies,
procedures and controls; the designation of a compliance officer; ongoing employee training;
and an independent audit function to test the program. ✔Correct Answer-Bank Secrecy Act (BSA)
Compliance Program
The Basel Committee was established by the G-10's central bank of governors in 1974 to
promote sound supervisory standards worldwide. Its secretariat is appointed by the Bank
for International Settlements in Basel, Switzerland. It has issued, among others, papers on
customer due diligence for banks, consolidated KYC risk management, transparency in payment
messages, due diligence and transparency regarding cover payment messages related to
cross-border wire transfers, and sharing of financial records among jurisdictions in connection
with the fight against terrorist financing. See www.bis.org/bcbs. ✔Correct Answer-Basel
Committee on Banking Supervision (Basel Committee)
, A type of data processing and data communications transmission in which related transactions
are grouped together and transmitted for processing, usually by the same computer and under
the same application. ✔Correct Answer-Batch Processing
In relation to a certificate, share transfer or other document, a bearer form enables a designated
investment or deposit to be sold, transferred, surrendered or addressed to a bearer without
the need to obtain further written instructions. ✔Correct Answer-Bearer Form
Includes monetary instruments in bearer form such as: negotiable instruments (including
checks, promissory notes and money orders) that are either in bearer form, are endorsed
without restriction, are made out to a payee, or are otherwise in such form that title thereto
passes upon delivery. ✔Correct Answer-Bearer Negotiable Instruments
Negotiable instruments that accord ownership in a corporation to the person who is in physical
possession of the bearer share certificate, a certificate made out to "Bearer" and not in the
name of an individual or organization. ✔Correct Answer-Bearer Share
Also called a nominee account. Held by one person or entity on behalf of another or others,
Benami accounts are associated with the hawala underground banking system of the Indian
subcontinent. A person in one jurisdiction seeking to move funds through a hawaladar to
another jurisdiction may use a Benami account or Benami transaction to disguise his/her true
identity or the identity of the recipient of the funds. ✔Correct Answer-Benami Account
The term beneficial owner has two different definitions depending on the context:
• The natural person who ultimately owns or controls an account through which a transaction
is being conducted.
• The natural persons who have significant ownership of, as well as those who exercise
ultimate effective control over, a legal person or arrangement. ✔Correct Answer-Beneficial Owner
The term beneficiary has two different definitions depending on the context:
• The person (natural or legal) who benefits from a transaction, such as the party receiving
the proceeds of a wire, a payout on an insurance policy.
• In the trust context, all trusts (other than charitable or statutory-permitted non- charitable
trusts) must have beneficiaries, which may include the settlor. Trusts must also include
a maximum time frame, known as the "perpetuity period," which normally extends up to
100 years. While trusts must always have some ultimately ascertainable beneficiary, they
may have no defined existing beneficiaries. ✔Correct Answer-Beneficiary
A casino customer goes to various slot machines putting cash in the bill acceptors and collects
cash-out tickets with nominal gaming activity, then cashes out at the casino cage or asks for
a check. ✔Correct Answer-Bill Stuffing
The Black Market Peso Exchange (BMPE) is an example of a complex method of trade-based
money laundering. The BMPE originally was driven by Colombia's restrictive policies on currency
exchange. To circumvent those policies, Colombian businesses bypassed the government
levies by dealing with peso brokers that dealt in the black market or parallel financial market.
Colombian drug traffickers took advantage of this method to receive Colombian pesos in
Colombia in exchange for U.S. drug dollars located in the U.S. ✔Correct Answer-Black Market Peso
Exchange (BMPE)
Person to whom a financial transaction card is issued, or an additional person authorized to
ANSWERS|ACTUAL COMPLETE EXAM|ALREADY
GRADED A+
A written statement given under oath before an officer of the court, notary public, or other
authorized person. It is commonly used as the factual basis for an application for a search,
arrest or seizure warrant. ✔Correct Answer-Affidavit
Underground banking or Informal Value Transfer Systems (IVTS). Often associated with ethnic
groups from the Middle East, Africa or Asia, and commonly involves the transfer of values
among countries outside of the formal banking system. The remittance entity can be an ordinary
shop selling goods that has an arrangement with a correspondent business in another country.
There is usually no physical movement of currency and a lack of formality with regard to
verification and record- keeping. The money transfer takes place by coded information that is
passed through chits, couriers, letters, faxes, emails, text messages, or online chat systems,
followed by some form of telecommunications confirmations. ✔Correct Answer-Alternative
Remittance System (ARS)
A compendium of analyses of anti-money laundering laws and regulations, including two
general classes of money laundering control measures—domestic laws and international
cooperation—as well as information on national contacts and authorities. A secure, multilingual
database, AMLID is an important reference tool for law enforcement officers involved in
cross-jurisdictional work. ✔Correct Answer-Anti-Money Laundering International Database
(AMLID)
The system designed to assist institutions in their fight against money laundering and terrorist
financing. In many jurisdictions, government regulations require financial institutions, including
banks, securities dealers and money services businesses, to establish such programs. At a
minimum, the anti-money laundering program should include:
1. Written internal policies, procedures and controls;
2. A designated AML compliance officer;
3. On-going employee training; and
4. Independent review to test the program ✔Correct Answer-Anti-Money Laundering Program
A court order directing a law enforcement officer to seize and detain a particular person and
require them to provide an answer to a complaint or otherwise appear in court. ✔Correct Answer-
Arrest Warrant
A Financial Action Task Force (FATF)-style regional body consisting of jurisdictions in the
Asia/Pacific Region. ✔Correct Answer-Asia/Pacific Group on Money Laundering (APG)
A process that includes reorganizing how assets are held so as to make them less vulnerable
should a claim be made against a person. Asset protection is also a term used by tax planners
for measures taken to protect assets from taxation in other jurisdictions. ✔Correct Answer-Asset
Protection
A special form of irrevocable trust usually created (i.e., settled) offshore for the principal
purposes of preserving and protecting part of one's wealth from creditors. Title to the asset is
,transferred to a person named the trustee. APTs are generally used for asset protection and are
usually tax neutral. Their ultimate function is to provide for the beneficiaries. Some proponents
advertise APTs as allowing foreign trustees to ignore U.S. court orders and to simply transfer
the trust to another jurisdiction in response to legal action threatening the trust's assets. ✔Correct
Answer-Asset Protection Trusts (APTs)
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. ✔Correct Answer-
Automated Clearing House (ACH)
An electronic banking outlet that allows customers to complete basic transactions without the
assistance of a bank employee. ATMs generally dispense cash, allow check and cash deposits
and transfers to be made, as well as balance inquiries. ✔Correct Answer-Automated Teller
Machine (ATM)
Vulnerable to money laundering because it represents a reputable international monetary
instrument drawn on a reputable institution, and is often made payable—in cash— upon
presentation
and at the issuing institution's account in another country. ✔Correct Answer-Bank Draft
Refers to laws and regulations in countries that prohibit banks from disclosing information
about an account—or even revealing its existence—without the consent of the account holder.
Impedes the flow of information across national borders among financial institutions and their
supervisors. One of FATF's 40 Recommendations states that countries should ensure that
secrecy laws do not inhibit the implementation of the FATF Recommendations. ✔Correct Answer-
Bank Secrecy
The primary U.S. anti-money laundering regulatory statute (Title 31, U.S. Code Sections 5311-
5355) 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. ✔Correct Answer-Bank Secrecy Act (BSA)
A program that U.S.-based financial institutions—as defined by the Bank Secrecy Act—are
required to establish and implement in order to control money laundering and related financial
crimes. The program's components include at a minimum: the development of internal policies,
procedures and controls; the designation of a compliance officer; ongoing employee training;
and an independent audit function to test the program. ✔Correct Answer-Bank Secrecy Act (BSA)
Compliance Program
The Basel Committee was established by the G-10's central bank of governors in 1974 to
promote sound supervisory standards worldwide. Its secretariat is appointed by the Bank
for International Settlements in Basel, Switzerland. It has issued, among others, papers on
customer due diligence for banks, consolidated KYC risk management, transparency in payment
messages, due diligence and transparency regarding cover payment messages related to
cross-border wire transfers, and sharing of financial records among jurisdictions in connection
with the fight against terrorist financing. See www.bis.org/bcbs. ✔Correct Answer-Basel
Committee on Banking Supervision (Basel Committee)
, A type of data processing and data communications transmission in which related transactions
are grouped together and transmitted for processing, usually by the same computer and under
the same application. ✔Correct Answer-Batch Processing
In relation to a certificate, share transfer or other document, a bearer form enables a designated
investment or deposit to be sold, transferred, surrendered or addressed to a bearer without
the need to obtain further written instructions. ✔Correct Answer-Bearer Form
Includes monetary instruments in bearer form such as: negotiable instruments (including
checks, promissory notes and money orders) that are either in bearer form, are endorsed
without restriction, are made out to a payee, or are otherwise in such form that title thereto
passes upon delivery. ✔Correct Answer-Bearer Negotiable Instruments
Negotiable instruments that accord ownership in a corporation to the person who is in physical
possession of the bearer share certificate, a certificate made out to "Bearer" and not in the
name of an individual or organization. ✔Correct Answer-Bearer Share
Also called a nominee account. Held by one person or entity on behalf of another or others,
Benami accounts are associated with the hawala underground banking system of the Indian
subcontinent. A person in one jurisdiction seeking to move funds through a hawaladar to
another jurisdiction may use a Benami account or Benami transaction to disguise his/her true
identity or the identity of the recipient of the funds. ✔Correct Answer-Benami Account
The term beneficial owner has two different definitions depending on the context:
• The natural person who ultimately owns or controls an account through which a transaction
is being conducted.
• The natural persons who have significant ownership of, as well as those who exercise
ultimate effective control over, a legal person or arrangement. ✔Correct Answer-Beneficial Owner
The term beneficiary has two different definitions depending on the context:
• The person (natural or legal) who benefits from a transaction, such as the party receiving
the proceeds of a wire, a payout on an insurance policy.
• In the trust context, all trusts (other than charitable or statutory-permitted non- charitable
trusts) must have beneficiaries, which may include the settlor. Trusts must also include
a maximum time frame, known as the "perpetuity period," which normally extends up to
100 years. While trusts must always have some ultimately ascertainable beneficiary, they
may have no defined existing beneficiaries. ✔Correct Answer-Beneficiary
A casino customer goes to various slot machines putting cash in the bill acceptors and collects
cash-out tickets with nominal gaming activity, then cashes out at the casino cage or asks for
a check. ✔Correct Answer-Bill Stuffing
The Black Market Peso Exchange (BMPE) is an example of a complex method of trade-based
money laundering. The BMPE originally was driven by Colombia's restrictive policies on currency
exchange. To circumvent those policies, Colombian businesses bypassed the government
levies by dealing with peso brokers that dealt in the black market or parallel financial market.
Colombian drug traffickers took advantage of this method to receive Colombian pesos in
Colombia in exchange for U.S. drug dollars located in the U.S. ✔Correct Answer-Black Market Peso
Exchange (BMPE)
Person to whom a financial transaction card is issued, or an additional person authorized to
