ACAMS

Question 1

What is money laundering, including simple definition?

Answer 1

Taking criminal proceeds & disguising their illegal source, in order to use the funds for legal or illegal activities.

Simple term: it’s about making the dirty money look clean.

Question 2

What is predicate crime, also give two examples?

Answer 2

It’s a crime which is a component of a larger crime (I.e. criminal activity that lead to money laundering)

Examples: illegal arms trade and trafficking of narcotics

Question 3

What is FATF?

Answer 3

It is a global AML/CFT/CPF standard setter, which also aims to foster international cooperation.

Question 4

What is an important prerequisite in money laundering definition?

Answer 4

Knowing that an asset is derived from criminal offence

Question 5

What is Wilful Blindness?

Answer 5

It’s a deliberate avoidance of knowledge of the facts

Question 6

What are similarity and differences between money laundering and terrorism financing?

Answer 6

Similarity: use same method to move money to avoid detection (e.g. structuring payments or underground baking system such as hawala).

Difference: TF money can come from legal sources. The primary focus of TF is to hide the purpose and destination rather that the source.