Anti-Money Laundering and Terrorist Financing

A certification offered by the Association of Certified Anti-Money Laundering Specialists (ACAMS) demonstrating expertise in anti-money laundering (AML) and financial crime prevention.

The organization that offers the CAMS certification exam.

The group responsible for developing and updating the CAMS exam and its study guide.

The latest version of the CAMS Study Guide.

The website where you can find information about ACAMS and the CAMS certification.

When criminal organizations buy state-owned assets, like land or companies, to hide illegal money and continue criminal activities.

The negative impact on a country's image and its ability to attract investments when it's known as a haven for money laundering or terrorist financing.

Reduced opportunities for legitimate businesses in a country known for money laundering because financial institutions face extra scrutiny and costs.

The process where a government doesn't collect enough taxes to cover its expenses, leading to economic problems.

Measures taken by international organizations and countries to address money laundering risks, such as sanctions or reduced aid.

The difficulty of restoring a country's financial reputation after it's been damaged by money laundering concerns.

The process of a government selling its assets, like companies and land, to private businesses.

Organizations working towards improving tax collection practices and transparency in their member countries.

The potential for an organization to suffer damage to its reputation due to association with money laundering activities, leading to loss of trust from clients, investors, and the public.

The risk of financial losses due to inadequate internal controls, processes, or systems, or external events related to money laundering. Examples include losing correspondent banking services or facing higher funding costs.

The possibility of facing legal actions, penalties, fines, and even closure due to involvement in money laundering activities.

The risk of losing profitable business opportunities due to money laundering activities, as customers, investors, and partners may avoid working with a tainted organization.

A situation where an organization faces difficulties in meeting its financial obligations because of money laundering-related withdrawals or frozen funds.

Money laundering activities can lead to banks losing essential banking relationships, affecting their ability to process international transactions and access vital services.

The financial losses incurred by an organization due to investigations, legal proceedings, and penalties related to money laundering activities.

The seizure of assets and property by authorities, including funds, real estate, and other valuables, as a result of money laundering investigations.

A method used by criminals to disguise the source of illegally obtained money, making it appear legitimate.

A network of individuals or organizations that facilitate money laundering by moving funds through various channels, often using complex transactions and intermediaries.

Individuals recruited by criminal organizations to transport large sums of cash across borders, often unwittingly.

An informal system of transferring money based on trust and personal relationships, often used in money laundering to avoid formal financial institutions.

A financial crime where individuals are forced or coerced into working in the sex industry, often involving debt bondage and threats of violence.

Activities conducted by organizations or individuals to identify potential money laundering risks and report suspicious transactions to authorities.

A method used by criminals to obtain fraudulent visas and travel documents, often by forging bank statements and creating fake identities.

The process of obtaining and using personal information about victims' families to control and intimidate them.

Money laundering is the process of concealing the illegal origin of funds, making them appear legitimate.

The three stages of the money laundering cycle are placement, layering, and integration.

Money laundering has significant economic and social consequences, including undermining financial systems, enabling organized crime, and distorting markets.

AML/CFT compliance programs are designed to prevent and detect money laundering and terrorist financing.

Electronic transfer of funds (EFT) is a method of moving money electronically between bank accounts.

Remote Deposit Capture (RDC) allows businesses to deposit checks electronically without physically going to the bank.

Correspondent banking is a system where banks provide services to other banks, including processing transactions and managing accounts.

Payable-through accounts are used by businesses to receive payments from customers without having a direct account relationship with the bank holding the account.

Concentration accounts are used to pool customer funds together for processing and settlement, which can be vulnerable to money laundering if not properly monitored.

Private banking provides personalized wealth management services to high-net-worth clients, which can be a channel for money laundering if not properly controlled.

Structuring involves breaking down large transactions into smaller ones to evade reporting requirements.

Credit card industry can be used for money laundering through skimming, where stolen credit card data is used to make unauthorized purchases, or through card-not-present transactions, where the cardholder doesn't physically present the card for purchases, making it easier to launder money without detection.

Money services businesses (MSBs) are companies that provide financial services, such as money transmission, currency exchange, and check cashing, which are vulnerable to money laundering if not properly regulated.

Terrorist financing involves funding terrorist activities, which often utilizes complex financial methods to conceal the source of funds.

The Financial Action Task Force on Money Laundering (FATF) is an intergovernmental organization that sets international standards for combating money laundering and terrorist financing.

A program designed to understand and evaluate a customer's risk profile and financial dealings. It involves verifying the customer's identity, assessing their business activities, and understanding their sources of funds. This is crucial for managing risk and preventing financial crime.

A critical part of KYC, this involves collecting, verifying, and analyzing information about customers. This helps determine the level of risk associated with a customer and ensures their activities align with the organization's policies.

An enhanced level of scrutiny applied to higher-risk customers, requiring more extensive research and monitoring. This may involve examining the customer's background in greater detail and scrutinizing their transactions.

This process ensures that organizations have procedures in place to verify the identities of their customers. It includes identifying essential information like name, address, and proof of identity.

A comprehensive approach to KYC, aiming to combine all relevant information from different sources. This helps create a complete and accurate picture of a customer.

A set of regulations and procedures used to restrict financial transactions with certain individuals, organizations, or countries. This helps prevent financing of illegal activities and promotes international security.

A vital part of compliance involves checking if a customer or entity is on a list of sanctioned individuals or organizations. This helps identify and prevent transactions with those subject to economic sanctions.

An essential element of AML compliance, this involves screening customers and employees to identify those considered Politically Exposed Persons (PEPs). PEPs are individuals in positions of significant political or public influence, potentially exposing them to corruption and financial crime.

Similar to KYC, this involves understanding the risks associated with employees, particularly those handling transactions or sensitive data. It helps prevent internal fraud and ensures that employees are aware of and comply with AML regulations.

This involves monitoring transactions for unusual patterns or activities that may indicate potential money laundering or terrorist financing. This could include unusual transaction volumes, sudden account changes, or cash transactions exceeding a certain threshold

A key process in AML compliance, this involves analyzing and predicting the risk of money laundering and terrorist financing. This helps organizations prioritize resources and focus on areas of greatest risk.

A critical part of AML compliance, this involves establishing a strong organizational culture that actively emphasizes compliance. This includes training employees, implementing clear policies and procedures, and proactively addressing any compliance issues.

A key part of AML compliance, this involves regularly reviewing and updating anti-money laundering policies and procedures. This ensures that the organization's approach remains up-to-date and effective in preventing financial crime.

A critical element of AML compliance, this involves ensuring that all employees are trained on AML regulations, policies, and procedures. This helps create a culture of compliance and equips employees to identify and report suspicious activities.

This refers to financial transactions conducted using virtual currencies like Bitcoin, Litecoin, or Ethereum. It poses unique challenges for AML compliance, as the decentralized nature of these currencies creates complex transactions difficult to track.