Money Laundering Risks and Indicators

The CAMS examination is a globally recognized certification for individuals working in anti-money laundering (AML) and financial crime compliance.

The CAMS Examination Task Force is responsible for developing and updating the CAMS examination and study guide.

John J. Byrne, CAMS, is the Task Force Executive Chair, leading the development of the CAMS exam.

Catalina Martinez is the Project Manager for the CAMS Examination Task Force.

This individual or individuals contribute to the development of the CAMS exam and study guide alongside the Task Force.

The process by which criminals attempt to disguise the origin of illegally obtained funds and make them appear legitimate.

The process of concealing the source of funds used to finance terrorist activities.

ACAMS promotes international standards for detecting and preventing money laundering and terrorist financing.

ACAMS educates professionals in both the public and private sectors about AML/CFT standards and best practices.

ACAMS provides a platform for AML/CFT professionals to connect with peers and share knowledge.

ACAMS offers certification programs to recognize and validate the expertise of AML professionals.

ACAMS helps professionals advance their careers by providing education, certification, and training opportunities.

ACAMS assists institutions in identifying qualified professionals with the CAMS designation.

A professional designation that signifies expertise in Anti-Money Laundering (AML) and combating financial crime.

The Association of Certified Anti-Money Laundering Specialists. A global organization committed to promoting AML and KYC best practices.

Individuals who have passed the CAMS examination and are recognized by ACAMS as having demonstrated a high level of knowledge and understanding of AML and financial crime.

A global network of professionals working in the AML field. ACAMS Chapters provide local support and professional development opportunities.

The commitment to promote best practices, knowledge sharing and professional development within the AML field.

The specialized knowledge and skills required to effectively identify, assess, and mitigate money laundering risks.

Processes and procedures designed to verify the identity of customers and monitor their financial transactions to prevent money laundering and other financial crimes.

The danger of negative publicity and damage to an organization's reputation, ultimately impacting customer trust and business.

When money laundering activities lead to a loss of profitable business opportunities due to customer or partner avoidance.

When a bank experiences a shortage of readily available funds because many depositors withdraw their money due to concerns about the bank's stability.

When other banks refuse to provide financial services or increase fees due to suspicions of money laundering activities.

The cost of investigations, fines, and penalties imposed by authorities for illegal activities.

The seizure of assets by law enforcement agencies as part of a money laundering investigation.

Losses incurred on loans due to borrowers engaging in money laundering activities and becoming unable to repay.

The decline in the value of a financial organization's shares on the stock market due to reputation damage or perceived risk from money laundering allegations.

Money laundering is a criminal activity that involves disguising the origin of illegally obtained funds to make them appear legitimate.

Money laundering can have serious negative consequences for economies and societies.

Money laundering is a global problem, and various institutions and individuals are involved in combating it.

This involves identifying, assessing, and mitigating risks related to money laundering and terrorist financing.

Individuals in senior positions within regulated entities are accountable for ensuring that AML/CFT compliance programs are effective.

FinCEN issued an advisory in 2014 emphasizing the importance of a strong compliance culture and the responsibility of all staff in AML/CFT compliance.

The Yates Memo reminds prosecutors to focus on individuals who committed corporate wrongdoing, not just the company itself.

SM&CR in the UK requires financial institutions to assign specific responsibility to senior managers for ensuring effective anti-financial crime measures.

Money laundering using electronic fund transfers from or to financial secrecy havens or high-risk areas without a clear business reason, or when the activity doesn't match the customer's history or business.

Large incoming funds transfers from a foreign client with little or no explanation, especially when they don't fit the customer's normal activity.

Using numerous small incoming transfers or deposits via checks or money orders, followed by a subsequent transfer of most of the funds to another location, which doesn't align with the customer's usual business practices.

Fund movements that lack a clear purpose, repeat in an unusual pattern, or are hard to explain.

Payments received or made that have no clear link to legitimate business contracts, products, or services.

Sending or receiving funds between the same person but using multiple different accounts.

A digital banking service that allows customers to scan checks and send them electronically for deposit, eliminating the need to visit a bank.

RDC can be misused by money launderers as it allows them to move checks easily through accounts, potentially using multiple scanning devices and even setting up accounts for others to deposit checks.