CAMS Chapter 4 Key Notes

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n Pro Tip: The below key points is an extraction of recently examined core concepts in CAMS examination. We highlighted below key points to encourage candidate to pay special attention to it. Please note, the below key study note do not cover all concepts and materials, you are always encouraged to study the official ACAMS study material and leverage our practice questions to study.

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n Handling of governmental subpoena or search warrantn

1. Legally fulfill the requirement of the subpoena or warrant
2. Determine whether the customer identified requires the filing of STR

n who in the FI should review the subpoenan

Senior management and/or counsel review the subpoena

Provide all the appropriate measures and documents if there are no grounds for contesting the subpoena

On a timely and complete basis

n Can the government order the maintain of one account that is being investigated?n

Yes, but require a writing request under proper letterhead and authority from the government

n FI handling on restrain or freeze of accounts or assetsn

Obtain a copy of the order and make every effort to comply

n what to remember when using the internet for financial investigationsn

That information is reliable and verifiable

If it is customer reputation related information, cautious should be taken to ensure that the research info of news or quasi-news websites

Tips on search engine:

use metasearch engines

use that country local search engine

use multiple search engines is a good idea

n Whether to file a STR or notn

Whether to file a STR or not have the same level of importance.

The final decision should be documented and supported by the reasoning that is being used to make such a decision.

Many jurisdictions also require STRs should be filed within a number of days after the investigation or potentially suspicious activity.

n What should be included in the STR filingn

The recipient of the STR doesn’t have the intimate knowledge of what is expected activity.

In addition, capturing any known typologies identified as part of the review should be added as well.

The quality of the STR reflects the quality of the AML CFT program of the FI.

n What should be considered when closing an accountn

The legal basis for closing the account

The reputation risk to the FI if maintaining the account ( Not closing )

The seriousness of the conduct of the account

The request to close or maintain the account by the law enforcement agencies

n what to be considered to whether prosecute a FI for ML violationsn

the FI:

criminal hsitory

cooperation history

if it is self-reported

any comprehensive and effective AML CFT program

any timely and effective remedial action

any civil remedies available that can serve as punishment

deterring wrongdoing by others

advice and recommendations from the FIU

n When a FI is being investigated, what should the FI don

Respond quickly and completely to all request

Inform senior management

Retaining qualified, experienced legal counsel

Conduct an inquiry of its own to determine the underlying facts

All information should be centralized when response

n Destroy of investigation documentsn

Is alright if documents is pursuant to a legitimate policy and have prior obtain knowledge from the subpoena.

But a serious problem if this is destroy after the investigation and the FI is notified about the investigation, even there is no subpoena received

n Retaining counseln

For small banks, they are recommended to consult experienced outside legal counsel or hire them to confront government investigation of the institution itself.

n Describe and define mutual legal assistance treatiesn

Taking of evidence and obtaining of statements of persons: provision of information, documents and other records

Process:

Central authority (requesting) sends commission rogatoire with info required, nature of request, criminal charges and legal provision.

Local investigator find if info is available

Requesting country send agents for such info

Have central authority permission to remove the evidence

Local witness may need to attend court hearings in the requesting money

n three core functions of FIUsn

Receive

Analysis

Dissemination

n Key points related to FIUs information exchangen

Egmont principle: Free exchange of information at FIU level should be possible on reciprocity and spontaneous exchange level

Definition of offenses should not be an obstacle to free exchange of information at FIU level

Exchange of information should be taken place as informally and as rapidly as possible and no excessive formal procedures needed

Protection of privacy and confidentiality of the shared data

FIU should have the power to sign MOUs independently if required

There should have no intermediaries in between of the FIUs

Uses of a secure way to transmit the information e.g. Egmont Secure Web (ESW)