100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Anti-Money Laundering Certificate Exam Study Guide R233,50   Add to cart
Quickly navigate to
Preview
  2.  
  3. Prep Tests
  4.  
  5. Prep Tests

Exam (elaborations)

Anti-Money Laundering Certificate Exam Study Guide
 0 view  0 purchase
  • Course
  • Prep Tests
  • Institution
  • Prep Tests

Anti-Money Laundering Certificate Exam Study Guide Money Laundering - ANSWER-The process of making dirty money look clean. Criminals disguise the source of funds, changing the form or moving the money to a place where it is less likely to attract attention. The process of money laundering can b...

[Show more]

Preview 4 out of 36  pages

Document information

  • November 10, 2024
  • 36
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • anti money laundering certificate exam study guide

Written for

  • Prep Tests
  • Prep Tests

Seller

avatar-seller
OliviaWest

Reviews received

Content preview

Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED




Anti-Money Laundering Certificate Exam

Study Guide


Money Laundering - ANSWER✔✔-The process of making dirty money look clean. Criminals disguise the

source of funds, changing the form or moving the money to a place where it is less likely to attract

attention. The process of money laundering can be broken down into three stages: Placement, Layering

and Integration.


UN 2000 Convention Against Transnational Organized Crime - "Palermo Convention" def. of Money

Laundering - ANSWER✔✔-1. The conversion of property for the concealment of its origin


2. The concealment of the true nature of the property


3. The acquisition/use of property


All three need: KNOWING it was derived from a criminal offense


Importance of "KNOWING" in money laundering - ANSWER✔✔-You have to prove knowing in money

laundering. The intent and knowledge required to prove the offense of money laundering includes the

concept that such a mental state may inferred from "objective factual circumstances."


Willful Blindness - ANSWER✔✔-This is the deliberate avoidance of knowledge of the facts or purposeful

indifference and have held that willful blindness is the equivalent of actual knowledge of the illegal

source of funds or the intentions of a customer in a money laundering transaction.


Difference of ML and Terrorist Financing - ANSWER✔✔-The funds destined for money laundering are

derived from criminal activities while the funds of terrorist financing may include funds from perfectly

Copyright ©Stuvia International BV 2010-2024 Page 1/36

, Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED


legitimate sources. Concealment of funds used for terrorism is primarily designed to hide the purpose

for which these funds are used, rather than their source.


Placement - ANSWER✔✔-Stage one of money laundering. This is the physical disposal of cash or other

assets derived from criminal activity. During this phase the money launderer introduces the illicit

proceeds into the financial system. Often, this is accomplished by placing the funds into circulation

through formal financial institutions, casinos, and other legitimate businesses, both domestic and

international.


Placement techniques - ANSWER✔✔-1. Blending of funds


2. Foreign Exchange


3. Breaking up amounts


4. Currency smuggling


5. Loans


Blending of funds - ANSWER✔✔-Co-mingling of illegitimate funds with legitimate funds such as placing

the cash from illegal narcotics sales into cash-intensive locally owned restaurant.


Breaking up amounts - ANSWER✔✔-Placing cash in small amounts and depositing them into numerous

bank accounts in an attempt to evade reporting requirements.


Currency smuggling - ANSWER✔✔-cross-border physical movement of cash or monetary instrucments


Loans used for Placement - ANSWER✔✔-Repayment of legitimate loans using laundered cash




Copyright ©Stuvia International BV 2010-2024 Page 2/36

, Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED


Layering - ANSWER✔✔-The separation of illicit proceeds from their source by layers of financial

transactions intended to conceal the origin of the proceeds. This stage involves converting the proceeds

of crime into another form and making it difficult to find the origin and beneficial owners.


Examples of Layering - ANSWER✔✔-1. Electronically moving funds from one country to another and

dividing them into advanced financial options or markets


2. Moving funds from one financial institution to another or within accounts at the same institution


3. Converting the cash placed into monetary instruments


4. Reselling high value goods and prepaid access/stored value products.


5. Investing in real estate and other legitimate businesses


6. Using shell companies to obscure the ultimate beneficial owner and assets.


Integration - ANSWER✔✔-Third stage of money laundering. This stage is the part where the money tries

to become legitimate to illicit wealth through the re-entry of the funds into the economy in what

appears to be normal business or personal transactions. This stage provides a launderer the opportunity

to increase his wealth with the proceeds of crime.


Examples of Integration - ANSWER✔✔-1. Purchasing luxury assets like property, artwork, jewelry, or high

end automobiles.


2. Getting into financial arrangements or other ventures where investments can be made in business

enterprises


Economic/Social Risks of Money Laundering - ANSWER✔✔-1. Increased exposure to Organized Crime

and Corruption



Copyright ©Stuvia International BV 2010-2024 Page 3/36

, Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED


2. Undermining the Legitimate private sector


3. Weakening financial institutions


4. Dampening Effect on Foreign Investments


5. Loss of control of, or mistakes, in decisions regarding economic policy


6. Economic distortion and instability


7. Loss of tax revenue


8. Risks to privatization efforts


9. Reputation Risk for the Country


10. Risk of International Sanctions


11. Social Costs


12. Reputation Risk


13. Operational Risk


14. Legal Risk


15. Concentration Risk


Banks - Electronic Transfers of Funds - ANSWER✔✔-This is a transfer of funds that is initiated by

electronic means such as an ACH, ATM, electronic terminals, mobile telephones, or telephones or

magnetic tapes.




Copyright ©Stuvia International BV 2010-2024 Page 4/36

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller OliviaWest. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R233,50. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67096 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R233,50
  • (0)
  Buy now