Cams Exam Quesiton No 32

Question No 32:

What are the three key goals of an anti-money laundering program?

A. Prevent and detect money laundering and terrorist financing; report suspicious activity to proper authorities if the laws or regulations require it; train all pertinent employees.
B. Satisfy regulatory requirements; report suspicious activity to proper authorities if the laws or regulations require it; train all pertinent employees.
C. Train all pertinent employees if the laws require it; prevent money laundering; prevent terrorist financing.
D. Reduce regulatory burdens; help the court systems in convicting money launderers; protect the institution.

Answer: A

Top speakers to address anti-money laundering seminar in Riyadh

Thomson Reuters, one of the largest sources of news and information for professional markets, will host the 8th Annual Seminar Compliance and Prevention of Money Laundering on May 9 and 10 at Al-Faisaliah Hotel, Riyadh.

The seminar will be held in collaboration with the Institute of Finance based in the UK, with the support of Abdulaziz Al-Furaih, vice governor of the Saudi Arabian Monetary Agency (SAMA). With over 400 delegates and 35 speakers from most regional and international levels, the seminar is seen as a fulfillment of the prime minister and the event laundering AML for the regulatory community, governance, risk and compliance Saudi Arabia.

Fahad Al Dosari, CEO, Institute of Finance, said. "We are delighted to host the Seminar 8 Money Laundering and Compliance Committee, in collaboration with Thomson Reuters recognize the importance of maintaining compliance, responsible leadership and regulation of the fight against financial crime and ethical business growth. This year the seminar to broaden the dialogue on market segments and capital companies and professionals, as well as financial institutions. "

He added: "The seminar continues to provide a unique platform to connect the regulation, management, risk and the community in accordance with their regional and international counterparts to exchange views, discuss common challenges and share best practices."

Nadim Najjar, MD, MENA, Thomson Reuters, said: "Despite the last 10 years have seen a significant regulatory activity by challenging financial institutions, but has also experienced a leap forward in terms of international regulations and regional meet and cooperate with each other in order to overcome a global recession, reduce risk, and try to ensure that past mistakes are not revived. "

"We have seen that the posts financial markets under immense consideration of their own regulatory bodies, and fines simply, regulators have allowed to speak. The size and the threat of some of these implementation measures, and the volume of regulatory change that has regional and international regulators means there's 10 years of compliance was a very small part of some banks back office, which is now a vital and growing part of trade operations, "he added.

"As the financial sector continues to internationalization, it is important for companies and regulators in the Kingdom to discuss the scope of the legal requirements that could affect a regulated business and conducting their activities," Najjar added.

The seminar is supported by the major banks and financial institutions, including Banque Saudi Fransi, Samba, Saudi British Bank, Al Ahli, Saudi Hollandi Bank and ICSA.

Cams Exam Quesiton No 31

Question No 31:

Which three of the following statements are true?

A. Online gambling provides an excellent method of laundering because transactions are conducted primarily through credit or debit cards and the sites are typically unregulated offshore firms.
B. An institution can know when a credit card is used for online gambling transactions because the cards rely on codes that illustrate the type of transactions.
C. Online gambling provides an excellent method of laundering because it lends itself to any type of cash movement and there is no face-to-face contact with the customer.
D. Some banks no longer allow the use of credit cards for online gambling transactions.

Answer: A, B, D

A Hole in the Global Money-Laundering Defense: Philippine Casinos

An organ of international monitoring of money laundering Philippines warned that there was a hole in their defenses against persons illegally moving money around the economy: the casinos in the country.

Now this gap could eventually lead to higher charges for Filipinos working abroad when sending money to their families and damage the reputation of the banking industry.

These days, financial investigators attempting to locate and recover $ 101 million stolen in February from the account of Bangladesh to the New York Fed in a cybertheft complex dollars were frustrated by the fact that casinos are not covered by Law against money laundering of the Philippines. "

When the Philippines strengthened the law in 2013, which eventually decided not to add casinos to the list of entities listed, as recommended by the Working Group based in Paris Group of Financial Action Task Force (FATF), an oversight body multiparty government.

The group had distinguished industry to attract attention in its latest review of the defenses against money laundering in the Philippines three years ago. But lawmakers wanted the nascent casino industry and the jobs it promised to create, develop.

The exemption from the law means that the authorities can not require casinos to report operations or specific players to help their investigations, even if officials against money laundering believe that some of the capital of Bangladesh stolen was used to buy gambling chips in Manila.

In testimony before the Senate this week Philippines Julia Bacay-Abad, Executive Director of the Anti-Money Laundering Council of the Philippines, said the evidence that the board has collected shows that millions went to a casino and a business game online, where apparently they exchanged for gambling chip.

"The money trail ends there, with casinos," the official said, adding that the Council has appealed to the Federal Bureau of Investigation and their counterparts in Hong Kong, where a portion of the funds can -Be gone.

The FBI is investigating the theft of account Bangladesh, according to people familiar with the matter.
Philippines has managed to return only a small fraction of that $ 81 million was allocated to bank accounts in the country throughout South Asia $ 70,000 according to a central bank official close to the investigation Bangladesh.

However, about $ 20 million of the stolen funds were channeled Sri Lanka, but the transfer was considered suspect by the management of the bank and counteracted by the financial authorities.

Approximately $ 81 million in Bangladesh money was sent to accounts in Rizal Commercial Banking Corp. in February, according to officials of the two countries close to the investigation.

A lawyer and executive Rizal bank to the Senate this week that a branch manager of Manila, Maia Santos Deguito, had ignored the order to freeze the accounts, and instead transfer the money to them. Ms. Deguito, who testified before the Senate at a hearing behind closed doors this week and facing a Justice Department investigation, declined to comment on the charges against her, invoking the right not to testify at hearings. A lawyer for Ms. Deguito said his client is innocent of any wrongdoing.

President PhilRem, the cash back local firm that facilitated the transfer of $ 81 million in accounts RCBC, testified before the Philippine Senate this week that $ 29 million were paid to the account of a gaming operator Weikang curd identified as Xu at Solaire Resort & Casino, while approximately $ 30 million was awarded to Mr. Xu effective.

Another $ 21 million, the president said PhilRem, was transferred to a game online local company called Eastern Hawaii Leisure Co.

A lawyer confirmed Xu solar payments, but Xu could not be reached immediately for comment. A lawyer for the owner of Hawaii of the East told the Senate that his client Sin Kam Wong was not immediately able to testify because he is in Singapore for medical treatment. He added that Mr Wong will attend the next hearing scheduled for March 29.

The Philippines is not the only country whose laws against money laundering does not cover casinos. Similar laws in two dozen countries, including India, Mexico and Cambodia does not cover casinos.

But the Philippines combines the casino industry booming with the existence of several money transfer services established for overseas workers, increasing their vulnerability for use as a center for money-laundering.

Tuesday, Cristino Naguiat Jr., president of recreational and gambling Philippines Corp., which regulates casino operations, said he would welcome the inclusion of casinos under the Money Laundering Council. However, he expressed doubt that the change to the laws against money laundering could prevent an incident like this.

He described the movement of funds from Bangladesh to the Philippines as a "systemic failure at the level of the banking system because banks are the main guardians against illegal transactions."

Central bank governor Amando Tetangco Philippines said Friday that the central bank will work with Congress to improve and "fill the gaps" in the law by extending its powers to cover casinos and maybe even real estate companies.

If the Philippines does not act to fix the lagoon casino soon, experts say that the Philippines regulations could risk a collapse by the FATF, the multi government working group at its next review, which has not yet been scheduled. If the Philippines is hit to a lower range, which point to greater exposure to the risk of money laundering which could increase the cost of sending money to the country, kitchen and amount of money sent by large diaspora from the Philippines some 10 million foreign workers who pay about $ 24 million annually.
Filipinos have already faced problems sending or receiving money because of the FATF warning flags about how terrorist groups could move money in and out of the southern Philippines where Muslim militant groups still operating.

The amendments of laws against money laundering have tried to solve this problem, but fears of funds channeled activists, however affected funds transfer services to the restoration of Filipinos.

Susan Ople, Blas F. lawyer and president Ople Policy Center and Training based in Manila of migrants, he said, even before the investigation of the stolen funds Bangladesh began a series of money transfer operations in 17 countries Philippines , including Spain, Germany and Ireland had their bank accounts closed.

He also warned that if the government does not quickly plays to change the laws, Filipinos working abroad should have more foreign banks often "charges and generally offer lower exchange rate."

Bansan Choa, CEO of transferring money from Manila iRemit, told the Wall Street Journal that the study of his company found that closing the bank accounts of companies in Philippines remittances as part of foreign banks "derisking" in money laundering prone countries, it could cost the economy around $ 1.4 billion per year due to higher costs and less favorable exchange rates.

Remittances have remained strong and sustained weight Filipino consumer spending the main engines of economic activity.

Senate President Franklin Drilon said this week that the expansion of legislation against money laundering to include casinos will be one of the first major challenges for the next president of the Philippines. The country must carry out national elections on May 9 to choose a successor to President Benigno Aquino III, ending his single term of six years.

At least one of the candidates, Sen. Miriam Defensor Santiago warned that if the casino sector remains outside the laws against money laundering in the Philippines, and "the Philippines may become the world capital of laundering money ".

Cams Exam Quesiton No 30

Question No 30:

An AML compliance officer was reviewing customers at XYZ Bank and one of the customers (Mr. Sam Tropicana) attracted her attention. Through a period of several months, cash deposits and withdrawals were transacted through his account with amounts ranging between
US $7,500 and US $17,000. In addition, Sam deposited two checks, issued by a casino into his account for US $32,000 each. When opening the account, Sam stated that he operated an import/export company. Which of the following additional items should arouse the suspicion of an anti-money laundering compliance officer the most?

A. Sam maintained a personal account as well as the business account.
B. Sam's home telephone number was disconnected last month.
C. Sam asked for a letter of credit to finance some imports from a new supplier.
D. Sam conducted large cash transactions for his import/ export business.

Answer: D

Leave money launder probe to AMLC

LOCAL is the banking community in all its forms on suspicion of money laundering $ 81 million dollars stolen Bangladesh Bank has found its way into local casinos and subsequently delivered to bank accounts abroad.

The Money Laundering Council (ALMC) is investigating what may be the largest and the most serious cases of money laundering in the country.

Not much was discussed AMLC on the progress of its investigation because the Money Laundering Act requires to keep its activities secret for now.

The results of the survey are expected by local and foreign financial institutions because of their potentially serious implications for the country's banking system.

Despite AMLC to study the matter in accordance with its bylaws, the oversight committee of Congress on the law of money laundering, led by Senator Teofisto Guingona III, however, announced that it will also consider the issue.

The survey aims, among others, to study the possibility of including casinos entities that should be covered by the regulations against money laundering.

Advertising

At first glance, the purpose of the survey is legitimate or valid. It is the first step towards the possible amendment of the law.

However, the time and circumstances in which the research carried out are biased and do not raise the confidence that the target set sticking.

Elections are less than two months. Apart from Guingona, the members are Senator Sergio Osmeña III, Grace Poe, Antonio Trillanes IV and Vicente Sotto, running in the May polls.

They are at the heart of the election campaign. They are hungry for publicity or media exposure can increase their level of awareness in the public eye.

With a little felt badly in the polls, a congressional hearing that will give them some free benefit will be welcome, if not something to seriously consider.

Judging by the behavior of some of these senators in recent sessions of the Senate, there is a strong possibility that the provided probe can be converted into a platform to attract public attention to boost his candidacy.

Process

While other senators seeking reelection or more positions that are not members of this committee, nothing can prevent them from breaking the public to share the media exposure.

Grandstanding is par for the course in the Senate, but the problem is that some senators do not know what to think before opening his mouth.

In their desire to get their sound bites in the news or newspapers in the afternoon, these senators are likely to go out with strangers derogatory comments or resources if left to give consistent in their thinking or bias answers.

What is worrying is the probe on money laundering may deviate from its stated objective and aggravate the already bad situation that some banks have found themselves in.

Banks and financial institutions are very sensitive to public perception about its stability and management experience.

imprudent statements during the hearing that tend to undermine the integrity of the banking system, or give the impression of poor management can lead to loss of confidence of depositors in their banks, which could lead to bank runs.

Equally worrisome is the possibility of AMLC asked officials to disclose their strategies and techniques of control of money laundering activities, or coordination with their counterparts in foreign countries.

This will be a great help for drug lords and criminal gangs seeking refuge for their wealth soaked in blood.

Deliberations

From a practical standpoint, the congressional investigation makes no sense at all.

Apart from the publicity generated and the few minutes of fame that some senators are likely to benefit, nothing concrete will to force bank officials and government regulators concerned to appear and testify.

The duration of the current Congress expires on 30 June is not practical (if not naive) to wait until the Committee is able to release a report on its investigation, send it to the plenary for consideration and both houses of Congress to discuss and put agree on amendments to the Law on money laundering in three and a half months.

No Filipino in his right mind will believe that congressmen and senators will be so motivated by the oath of office they took to interrupt their campaigns and attend meetings to discuss and amend this law.

Except for lawmakers who want to use the media free media exposure, the incident money laundering is not a situation of death and life can return to work.

In short, the probe of the Congress will be a waste of money and people will do more harm than good.

The country will be better served if the AMLC is authorized to work in the alleged $ 81 million money laundering without any interference from Congress publicity seekers.

This is a time when a Congress that does nothing (which is anyway) is a positive development.

Cams Exam Quesiton No 29

Question No 29:

Which of the following best describes the "alternative remittance system"?

A. The transfer of values between countries, outside of the legitimate banking system.
B. A non-electronic data remittance system used in several NCCT countries to report suspicious activities.
C. Old-fashioned reporting requirements commonly used in non-cooperative countries and territories.
D. The transfer of funds between two or more financial institutions using concentration accounts.

Answer: A

Anti-Money Laundering Agency Had Issued Warnings About Panama

Against money laundering government agency has issued a clear local financial institutions on how Panama was still trying to fill gaps in their laws to counter practical information.

Panama Announces bulletins as "high-risk and non-cooperative jurisdiction" were issued before the Konrad Mizzi energy minister and chief of staff to Prime Minister Keith Schembri, each established a trust in New Zealand society and Panama.

The agency - the Financial Analysis Unit Information (CARF) - periodically passes information of this nature to the Maltese financial institutions. The information comes from the Financial Action Task Force, an intergovernmental organization that promotes measures against money laundering and other threats to the international financial system.

Newsletters agency recorded Panama as high risk were distributed in 2014, before the trusts were created in December this year and distributed again in 2015, almost simultaneously two two companies were established in Panama.

Trusts and companies have created using the services of Nexia BT, a firm audit, tax and consulting firm that is frequently used by the government. Go to the guidance notes issued by CARF, which was "good practices" for enhanced due process to be conducted by Dr. Nexia BT Mizzi and Mr. Schembri, given the risks involved in processing and classification Panama diligence as politically exposed persons.

This process of due diligence would have required Nexia BT to establish a detailed documentation about the origins of all funds channeled or two to channel their trust through New Zealand and related companies. Failure by a due diligence process could result in administrative fines imposed by the agency and the criminal action taken by the police. It is not known if this process was followed in the case of Dr. Mizzi and Mr Schembri.

since Dr. Mizzi has announced it will be closing Panamanian society. For his part, Mr. Schembri ignored the questions addressed to him by the Times of Malta asking for a complete list of offshore companies owns. Contacted yesterday, a spokesman CARF was unable to answer questions and say whether it is investigating the matter.

"The CARF is excluded by law to provide such information," the spokesman said. The spokesman confirmed that Panama was until recently the issue of compliance processes against global money laundering for the international working group.

"However, it should be noted that there has never been any" advice "issued by the CARF specific compared to Panama." Nor was no express prohibition on establishing business relationships or to perform any operations in this country, "said the spokesman.

Asked by the Malta times if financial institutions are being studied to advise their clients to use jurisdictions shadow like Panama, a spokesman for the Financial Services Authority of Malta she said privacy laws do not allow the details of investigations are is disclosed.

Cams Exam Quesiton No 28

Question No 28:

Susan works as a senior Money Laundering Reporting Officer at XYZ bank. She is taking a closer look at the activity of several customers. What would arouse her suspicion the MOST?

A. A customer who owns several check cashing companies in town and rents a safe deposit box.
B. A customer who avoids taking vacations.
C. A small business that provides financial statements which are not prepared by an accountant.
D. A customer involved in credit transactions often uses impressive- sounding but nonsensical terms such as emission rate, standby commitment, etc

Answer: D