Money laundering is a global problem that threatens the integrity of financial systems worldwide. The fight against money laundering is ongoing, and it requires the collective efforts of governments, financial institutions, and individuals. One of the key players in the fight against money laundering is the Certified Anti-Money Laundering Specialist (CAMS).
The CAMS certification is recognized globally as the gold standard in anti-money laundering (AML) certifications. It is a rigorous program that tests individuals on their knowledge of AML regulations, best practices, and procedures. As an AML professional, it is important to keep up with the latest developments in the field, and having a cheat sheet can be a valuable tool in achieving this goal.
In this blog post, we will explore the Certified Anti-Money Laundering Specialist (CAMS) cheat sheet, which is designed to help individuals prepare for the CAMS certification exam and stay up-to-date on AML best practices. We will discuss what the CAMS certification is, why it is important, and how the cheat sheet can help individuals achieve their AML goals. We will also provide an overview of the topics covered in the CAMS certification exam and explain how the cheat sheet can help individuals prepare for it.
Certified Anti-Money Laundering Specialist (CAMS): Overview
The Certified Anti-Money Laundering Specialist(CAMS) exam is administered by the Association of Certified Anti-Money Laundering Specialists (ACAMS). The Certified Anti-Money Laundering Specialist (CAMS) credential is the gold model in AML certifications and acknowledged internationally by financial institutions, governments and regulators as a solemn commitment to protecting the financial system against money laundering. In order to qualify for the CAMS exam, you must first apply for membership with the ACAMS. Moreover, the CAMS certification exam rigorously tests your expertise and aptitude and your comprehension of anti-money laundering detection, prevention and enforcement. This exam is definitely your way ahead.
Anti-Money Laundering Specialist (CAMS) Glossary
- Anti-Money Laundering (AML) – A set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
- Know Your Customer (KYC) – The process of identifying and verifying the identity of customers in order to assess their potential risk of involvement in illegal activities, including money laundering and terrorism financing.
- Customer Due Diligence (CDD) – The process of collecting and verifying customer information, including identification, to assess the level of risk associated with doing business with that customer.
- Enhanced Due Diligence (EDD) – A higher level of due diligence conducted on customers who are deemed to pose a higher risk of involvement in money laundering or terrorist financing activities.
- Suspicious Activity Report (SAR) – A report filed by financial institutions to law enforcement when they suspect that a transaction or activity is indicative of money laundering or other criminal activity.
- Money Laundering – The process of disguising the proceeds of illegal activities as legitimate funds in order to avoid detection and prosecution.
- Placement – The first stage of money laundering, in which illegal funds are introduced into the financial system.
- Layering – The second stage of money laundering, in which the funds are moved through multiple transactions to disguise their origin and make it difficult to trace them back to their illegal source.
- Integration – The final stage of money laundering, in which the laundered funds are reintroduced into the legitimate economy, often through investments or other financial transactions.
- Terrorist Financing – The process of providing financial support or resources to individuals or groups engaged in terrorism or terrorist activities.
- PEPs – Politically Exposed Persons, individuals who hold or have held prominent public positions or have close associations with those who hold such positions, and may therefore pose a higher risk of involvement in money laundering or terrorist financing activities.
- Sanctions – Financial and trade restrictions imposed by governments or international organizations on individuals, organizations, or countries, often in response to illegal or harmful activities.
- High-Risk Jurisdictions – Countries or territories that have been identified as having higher levels of corruption, money laundering, or terrorist financing risks.
- Compliance – The process of adhering to legal and regulatory requirements, including AML and KYC regulations, to prevent and detect illegal activities such as money laundering and terrorist financing.
- Risk Assessment – The process of identifying, analyzing, and evaluating potential risks associated with a business or activity, including risks related to money laundering and terrorist financing.
Exam preparation resources for Certified Anti-Money Laundering Specialist (CAMS) Exam
The Certified Anti-Money Laundering Specialist (CAMS) certification is a highly sought-after credential for professionals working in the financial crimes prevention and anti-money laundering (AML) field. The following official resources can be used to prepare for the CAMS certification exam:
- CAMS Exam Study Materials: The Association of Certified Anti-Money Laundering Specialists (ACAMS) offers a variety of study materials to help candidates prepare for the CAMS exam, including a study guide, flashcards, and practice questions. These materials can be purchased on the ACAMS website.
- CAMS Exam Preparation Webinar: ACAMS offers a free webinar to provide candidates with an overview of the CAMS exam and tips for preparing for the exam. The webinar covers topics such as exam structure, content areas, and study strategies.
- CAMS Exam Handbook: The CAMS Exam Handbook provides detailed information about the exam, including the exam format, content areas, and exam policies. It also includes sample questions to give candidates an idea of the types of questions they can expect on the exam.
- CAMS Exam Preparation Course: ACAMS offers a CAMS Exam Preparation Course, which is a comprehensive online course that covers all of the content areas of the CAMS exam. The course includes lectures, quizzes, and practice exams to help candidates prepare for the exam.
- CAMS Exam Study Groups: ACAMS offers CAMS Exam Study Groups, which are virtual study groups led by a CAMS-certified instructor. The study groups provide candidates with the opportunity to ask questions, discuss exam content, and share study strategies with other candidates.
Here are the links to the above-mentioned resources:
- CAMS Exam Study Materials: https://www.acams.org/certifications/cams/study-materials
- CAMS Exam Preparation Webinar: https://www.acams.org/cams-webinar/
- CAMS Exam Handbook: https://www.acams.org/certifications/cams/cams-exam-handbook/
- CAMS Exam Preparation Course: https://www.acams.org/certifications/cams/cams-exam-preparation-course/
- CAMS Exam Study Groups: https://www.acams.org/certifications/cams/study-groups/
Learning Path : Certified Anti-Money Laundering Specialist
In 2001, ACAMS set out with the mission to set an international standard for testing the knowledge of those entrusted with the detection and prevention of money laundering. Also, built upon the foundation and expertise of CAMS-certified professionals, the Advanced CAMS certifications (CAMS-Audit, CAMS-FCI and CAMS-Risk Management) represents a high-level training that equips professionals with essential AML knowledge and the ability to meet regulatory expectations, in the audit, financial crimes investigations and Risk Management fields.
Cheat Sheet for Certified Anti-Money Laundering Specialist (CAMS)
The key to crack any exam is by preparing with the right resources and along with the correct learning path. Therefore you revisions become all the more important as they determine the level of your preparations. This Cheat Sheet will equip you with everything you need to achieve this much valued credential.
Review the Exam Objectives
The first step is to visit the Official Site and review all the exam objectives. Familiarising yourself with CAMs certification exam courses and concepts is indeed important before venturing into the exam preparations. Devote enough time to each topic and have an in-depth knowledge of the subject. This exam covers the following 4 domains-
Topic 1: Risks and methods of money laundering and terrorism financing (26%)
ACAMS Reference: Risks and Methods of Money Laundering and Terrorist Financing, Real money laundering risk in life insurance
1.1 Firstly, Identify the risks to individuals for violations of AML laws.
1.2 Secondly, Identify the risks to institutions for violations of AML laws.
1.3 Thirdly, Identify the economic and social consequences of money laundering.
1.4 Identify the purpose of sanctions being imposed (e.g., OFAC, UN, EU).
1.5 Also, Identify methods to finance terrorism.
1.6 Identify methods to launder money used in banks and other deposit taking institutions.
1.7 Further, Identify methods to launder money used in insurance companies.
1.8 Identify methods to launder money using brokerdealers, investment advisors, and the capital markets (e.g., securities, futures).
1.9 Identify methods to launder money used in gaming (e.g., casinos).
1.10. Identify methods to launder money used in dealers of precious metal or high-value items.
1.11 Identify methods to launder money used in real estate.
1.12 Moreover, Identify methods to launder money used in bureaux de change and money services businesses.
1.13 Identify methods to launder money used by lawyers, notaries, accountants, and auditors.
1.14 Furthermore, Given a scenario about trust and company service providers, identify the red flags that indicate laundering or financing terrorism.
1.15 Given a scenario about emerging risks associated with technology as an enabler of money laundering or financing terrorism, identify the red flags.
1.16 Given a scenario about banks and other deposit-taking institutions, identify the red flags that indicate money laundering or financing terrorism.
1.17 Given a scenario about insurance companies, identify the red flags that indicate money laundering or financing terrorism.
1.18 Given a scenario about broker-dealers, investment advisors, and the capital markets (e.g., securities, futures), identify the red flags that indicate money laundering or financing terrorism.
1.19 Given a scenario about gaming (e.g., casinos), identify the red flags that indicate money laundering or financing terrorism.
1.20. Given a scenario about dealers of precious metal dealers and high-value items, identify the red flags that indicate money laundering or financing terrorism.
1.21 Given a scenario about dealers of real estate, identify the red flags that indicate money laundering or financing terrorism.
1.22 Given a scenario about bureaux de change and money services businesses, identify the red flags that indicate money laundering or financing terrorism.
1.23 Given a scenario about lawyers, notaries, accountants, and auditors, identify the red flags that indicate money laundering or financing terrorism.
1.24 Given a scenario, identify the red flags that indicate human trafficking.
1.25 Given a scenario about financial transactions that offer anonymity, identify the red flags that indicate money laundering or financing terrorism.
1.26 Given a scenario about lack of transparency of ownership (e.g., shell companies, trusts), identify the red flags that indicate money laundering or financing terrorism.
1.27 Given a scenario about moving money, identify the red flags that indicate money laundering or financing terrorism could be occurring.
1.28 Finally, Given a scenario involving commercial transactions, identify the red flags that indicate how trade-based money laundering could be occurring
Topic 2: Compliance standards for anti-money laundering and combating the financing of terrorism (CFT) (25%)
ACAMS Reference: Compliance Standards for Anti-Money Laundering and Combating the Financing of Terrorism
2.1 To begin with, Identify the key aspects of the FATF 40 Recommendations.
2.2 Then, Identify the process that FATF uses to raise awareness of certain jurisdictions with lax AML controls.
2.3 Identify key aspects of BASEL Committee Customer Due Diligence Principles.
2.4 Identify key aspects of the Wolfsberg Group’s AML Principles as they relate to private banking.
2.5 Additionally, Identify key aspects of the Wolfsberg Group’s AML Principles as they relate to correspondent banking.
2.6 Identify the key aspects of the EU Directives on money laundering.
2.7 Identify key aspects of the USA PATRIOT Act that have extraterritorial reach.
2.8 Subsequently, Identify key aspects of OFAC sanctions that have extraterritorial reach.
2.9 Given a scenario involving a non-US financial institution, identify the extraterritorial impact of the USA PATRIOT Act.
2.10. Identify the key roles of regional FATF-style bodies.
2.11 Lastly, Identify the key objectives of the Egmont Group
Become Certified Anti Money Laundering Specialist by preparing using the Study Guide!
Topic 3: Anti-money laundering (AML), CFT and sanctions compliance programs (28%)
ACAMS Reference: Anti-Money Laundering Compliance Program, BSA/AML and Sanctions Risk Assessments, Implementing an effective AML system
3.1 To begin with, Identify the components of an institution-wide risk assessment.
3.2 Then, Given a scenario with unmitigated risks, identify the appropriate course of action that should be taken.
3.3 Given a scenario of institution-wide controls, record-keeping requirements and other mitigating factors, identify how these components should be applied.
3.4 Moreover, Given a scenario, identify the key aspects of delivering targeted training for different audiences and job functions.
3.5 Given a scenario, identify key components of an AML training program.
3.6 Further, Identify the roles senior management and the board of directors play in how an institution addresses AML oversight.
3.7 Given a scenario, identify the roles senior management and board of directors play in how the institution addresses AML governance.
3.8 Additionally, Given a scenario, identify how customer onboarding should be implemented for the institution.
3.9 Furthermore, Given a scenario, identify areas to increase the efficiency and accuracy of automated AML tools.
3.10. Given a scenario, identify customers and potential employees that would warrant enhanced due diligence.
3.11 Given a scenario, identify the steps that should be followed to trace funds through a financial institution.
3.12 Also, Given a scenario including general client behavior, identify the suspicious behavior.
3.13 Given a scenario including some suspicious client behavior, identify how the institution should respond to these behaviors.
3.14 Given a scenario, identify the red flags and pressures (internal and external) with obscuring wire transfer information (e.g., beneficiary, originator).
3.15 Given a scenario, identify red flags associated with transactions or use of accounts (e.g., cash transactions, non-cash deposits, wire transfers, credit transactions, trade financing, investment activity).
3.16 Given a scenario including red flags associated with transactions or account activity, identify how the institution should respond to the red flags.
3.17 Likewise, Given a scenario including red flags associated with employee activity, identify how the institution should respond to the suspicious activity.
3.18 Given a scenario, identify situations in which the SAR/STR should be filed.
3.19 Given a scenario, identify how the SAR/ STR information in the documents should be protected.
3.20. Given a scenario, identify how to respond to law enforcement/governmental requests.
3.21 Given a scenario about an institution operating with multiple lines of business and/or in multiple jurisdictions, identify the important aspects of implementing an enterprise-wide approach to managing money laundering risk.
3.22 Given a scenario, identify appropriate steps to take to comply with sanctions requirements.
3.23 Identify sources for maintaining up-to-date sanctions lists.
3.24 Given a scenario about a relationship with a PEP, identify the appropriate steps to mitigate the risk.
3.25 Given a scenario, identify internal and external factors that can cause a reassessment of the current AML program.
3.26 Given a scenario, identify when and how to implement necessary program changes (e.g., policy/procedure change, enhanced training).
3.27 Given a scenario, identify the process to assess the money laundering and sanctions risk associated with new products and services.
3.28 Given a scenario, identify internal or external factors that should be escalated to management and/or the board of directors.
3.29 Given a scenario, identify how to respond to AML audit findings and/or regulator findings.
3.30. Given a scenario, identify the importance of ensuring the independence of an audit of the AML program.
3.31 Finally, Given a scenario, identify an appropriate risk-based approach to AML audits.
Topic 4: Conducting or supporting investigations process (21%)
ACAMS Reference: Conducting and Responding to Investigations
4.1 Firstly, Given a scenario about a high profile SAR/STR, identify how to report it to management/board of directors.
4.2 Then, Given a scenario, identify the appropriate manner to report a SAR/STR to authorities.
4.3 Identify how to maintain and secure all supporting documentation used to identify suspicious activity.
4.4 Given a scenario, identify factors that indicate an institution should exit a relationship due to excessive money laundering risk.
4.5 Given a scenario, identify factors that should be considered to keep an account open based on a law enforcement agency request.
4.6 Moreover, Given a scenario with an institution conducting an investigation of a customer, identify the areas and/or records it should examine.
4.7 Given a scenario with a regulatory or law enforcement agency conducting an investigation of an institution’s customer, identify the additional steps the institution should take.
4.8 Given a scenario with an institution being investigated by a regulatory or law enforcement agency, identify actions the institution should take.
4.9 Identify the factors that must be considered before institutions share customer-related information across and within the same jurisdiction.
4.10. Given a scenario involving a senior level employee engaged in potentially suspicious behavior, identify how address a potential AML situation (e.g., board member, CEO).
4.11 Also, Identify appropriate techniques that can be used for interviewing potential parties involved in an AML event.
4.12 Given a scenario, identify the available public source data and other sources that can be used in an investigation.
4.13 Identify the methods that law enforcement agencies may use to request information from an institution.
4.14 Identify the types of information law enforcement agencies typically ask for from institutions during investigations.
4.15 Identify how authorities (e.g., FIUs, central banks, governments, regulatory bodies) can cooperate and provide assistance when conducting crossborder money laundering investigations.
4.16 Further, Identify what a government FIU does and how it interacts with the public and private sectors.
4.17 Lastly, Identify the role of strict safeguards on privacy and data protection in AML investigations.
Discover Learning Resources
There are abundant Certified Anti Money Laundering Specialist study guide and resources available. Further, you must remember to refer to appropriate learning sources. It is suggested to choose the learning curve that best suit your preparations. Here are some Learning Resources you must explore-
Learn with Flashcards
Studying flashcards will test the candidate’s knowledge about the CAMS exam with quiz-style printable flashcards. Also, these study flashcards highlight the most critical learning points from the CAMS study guide.
Join CAMS Virtual Classroom
Now, this becomes the most significant part of any preparation guide. As a result, ACAMS also provides the candidates with the CAMS Virtual Classroom. This includes access to six 2-hour continuous web-based programs which serves to structure and strengthen your preparation. Moreover, it offers In-depth analysis of the content covered in the CAMS Guide. Learn through the CAMS Virtual Classroom to enhance your preparations.
Online Tutorials
You must always remember that cheat sheet is not sufficient for qualifying the exam. Therefore, begin your preparations by mastering the exam concepts through online tutorials. These CAMs exam Online Tutorials will provide in depth understanding of the exam concepts and enhance your learnings.
Study Guide
The roadmap to your success is only complete when you have the right strategy. Certified Anti Money Laundering Specialist Study Guides will be your support throughout your journey towards the Certified Anti Money Laundering Specialist exam. These guides will help you stay consistent and determined.
Self Evaluate with Practice Test
Practice tests are really significant to check your preparations. They provide you with insights about your strengths and weaknesses. Strengthening your weakness will help you ace the exam. Also, attempt as many practice papers as you can and try to perform better than the previous one each time. There are plenty of practice papers available online. Make sure you choose the right and authentic ones. Start Using CAMS exam Practice tests Now and crack the exam!
