Description

Contents

Chapter 1: Introduction

Risks & Methods of Money Laundering and Terrorist Financing.................................7

Classic Money Laundering Process........................................................................7

Effects of Money Laundering....................................................................................8

Chapter 2: Techniques

Money laundering techniques..................................................................................9

Electronic transfers...............................................................................................9

Correspondent banking.........................................................................................9

Payable Through Accounts (PTAs)........................................................................10

Concentration Accounts......................................................................................10

Private Banking...................................................................................................11

Structuring/Smurfing..........................................................................................11

Microstructuring..................................................................................................12

Cuckoo Smurfing.................................................................................................12

Bank Complicity..................................................................................................12

Credit Unions/Building Societies..........................................................................12

Credit Cards........................................................................................................13

Money Remitters & Money Exchange Houses......................................................13

Insurance Companies..........................................................................................13

Securities & Futures Broker-Dealers....................................................................14

Casinos & Gaming..............................................................................................14

Dealers in High Value Items................................................................................15

Travel Agencies...................................................................................................15

Vehicle Sellers....................................................................................................15

Gatekeepers: Accountants, Auditors, Lawyers, Notaries, Company Formation

Agents................................................................................................................15

Investment and Commodity Advisors..................................................................16

Trust & Company Service Providers.....................................................................16

Real Estate Industry............................................................................................17

Reverse Flip........................................................................................................18

Loan back...........................................................................................................18

Manipulation of import/export prices...................................................................18

Letters of Credit..................................................................................................18

Black Market Peso Exchange (BMPE)...................................................................18

Online/Internet Banking......................................................................................18

Internet Casinos..................................................................................................19

Prepaid Cards and E-cash....................................................................................19

Structures Designed to Hide Beneficial Ownership.................................................21

Shell Companies.................................................................................................21

Front Companies.................................................................................................21

Buying a company already owned by the criminal...............................................21

Double invoicing.................................................................................................21

Trusts..................................................................................................................22

Bearer Bonds, Securities & Cheques...................................................................22

Terrorist Financing...............................................................................................22

Informal Value Transfer Systems.........................................................................23

Charities & Non-for-profits...................................................................................23

Chapter 3: Regulatory Framework

Compliance Standards for AML and Combating Financing of Terrorism....................24

40 Recommendations.........................................................................................25

Overview of the 40 recommendations.................................................................26

Key highlights of the 40 recommendations..........................................................28

Non-Cooperative Counties..................................................................................29

Basel Committee on Banking Supervision..............................................................29

EU Directives on Money Laundering.......................................................................31

First Directive.....................................................................................................31

Second Directive.................................................................................................31

Third Directive....................................................................................................31

Regional FATF-Style Bodies and FATF Associate Members....................................32

Other AML initiatives..............................................................................................34

Other International Organizations.......................................................................35

Key US Legislation and Regulation relevant to International Transactions...............35

USA Patriot Act...................................................................................................35

OFAC: Office of Foreign Assets Control................................................................37

Key Groups.........................................................................................................37

Chronological AML Developments.......................................................................40

Chapter 4: AML Compliance

Anti-Money Laundering Compliance Program.........................................................42

Assessing Risk and Developing a Risk Scoring Model..........................................42

Levels of risk.......................................................................................................43

Geographical Location........................................................................................43

Products and Services Risk.................................................................................44

The Elements of an AML Program........................................................................46

Compliance Culture............................................................................................49

Customer Due Diligence.....................................................................................49

Account opening guidelines from Basel 2003...................................................49

Name lists.......................................................................................................50

Arabic Names..................................................................................................50

Know Your Employee...........................................................................................50

Suspicious/Unusual Transaction Monitoring and Reporting...................................50

Red Flags............................................................................................................51

Electronic AML Solutions........................................................................................55

Chapter 5: Investigations

Conducting and responding to an investigation...................................................56

Law enforcement investigations..........................................................................56

Decision to prosecute the institution...................................................................56

Responding to a law enforcement investigation..................................................57

Summonses and Subpoenas...............................................................................57

Search Warrants.................................................................................................57

Orders to restrain or freeze accounts or assets...................................................57

Dealing with Investigators and Prosecutors.........................................................58

Obtaining Counsel for the Investigation..............................................................58

Notices to Employees.........................................................................................58

Media Relations..................................................................................................58

Internal Investigations...........................................................................................58

Closing the Account............................................................................................59

Conducting the Investigation.................................................................................59

Documents.........................................................................................................59

Interviewing Employees......................................................................................59

Attorney-Client Issues.........................................................................................60

International Cooperation......................................................................................60

Mutual Legal Assistance Treaties.........................................................................60

Financial Intelligence Units..................................................................................60

The Supervisory Channel....................................................................................61

Study Questions & Explained Answers

Study Questions.....................................................................................................63

Section 1............................................................................................................63

Section 2............................................................................................................70

Section 3............................................................................................................75

Section 4............................................................................................................79

Answer Sheet.........................................................................................................83

Answers.................................................................................................................84

Additional Information

0 Reviews for ACAMS CAMS Study Guide