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6th EditionCFCS CERTIFICATIONEXAMINATION STUDY MANUALPreparing For The Certified Financial Crime Specialist Examination
CFCS CERTIFICATION EXAMINATION STUDY MANUALAssociation of Certified Financial Crime SpecialistsRivergate Plaza, 444 Brickell Avenue, Suite P60 Miami, FL 33131 USATel: 786-530-8231 Email: customerservice@acfcs.org Copyright 2019. All rights reserved. Association of Certified Financial CrimeSpecialists. Miami USA Reproduction or transmission of any part of this Manualwithout the express written authorization of the Association of CertifiedFinancial Crime Specialists is strictly prohibited and is a violation of UnitedStates and other laws.Notice: The Certified Financial Crime Specialist Examination PreparationManual is designed to help candidates prepare for the certification examination.No warranty or representation is made that candidates will pass the CFCSexamination by using or studying this Manual. It is designed to provide accurateand authoritative information concerning financial crime and related subjects. Inpublishing this Manual, neither ACFCS, the editors nor contributors is engagedin rendering legal or other professional service. The services of a competentprofessional should be sought if such assistance is required.@2019 Association of Certified Financial Crime Specialists
CFCS CERTIFICATION EXAMINATION STUDY MANUALCFCS CERTIFICATION EXAMINATIONSTUDY MANUALExecutive EditorBrian Svoboda KindleContributing EditorsKenneth Barden, Esq.Brian Golden, HSBCDonald Semesky, Financial Operations ConsultantsKaren Van Ness, Compliance Risk Solutions@2019 Association of Certified Financial Crime Specialists
CFCS CERTIFICATION EXAMINATION STUDY MANUALSPECIAL ACKNOWLEDGMENT AND APPRECIATIONThe CFCS Examination Preparation Study Manual was written and edited with the outstanding contributions ofexperts and specialists. ACFCS extends special thanks and acknowledgment to these financial crime professionals who shared their expertise and assistance.Beth BerenbaumAML ConsultantJohn Lash, Esq.BDOSamantha DillhoffFraud SpecialistMoyara RueshenMonterey Institute of International StudiesMatteson Ellis, Esq.Miller and ChevalierSarah SattenWells Fargo & CompanyJR HelmigLeveraged OutcomesMargaret S. SilversWells Fargo & CompanyBud HengUS OCDETF Pacific RegionSandra StibbardsCamelot InvestigationsRon KingRetiredSwathi PerpatiErnst & YoungRebecca LaPorteAIG Advisor GroupMohammad ZraiqatPelicanRECOGNITION OF THE FINANCIAL CRIME SPECIALISTS WHO ASSISTED INCONSTRUCTING THE CFCS CERTIFICATIONACFCS extends special thanks and acknowledgment to these financial crime professionals who shared theirexpertise in the creation of the CFCS Certification Examination.Heather AdamsAccentureJoram BorensteinNICE ActimizeLynn CorreiaKroll Advisory GroupAlbert AllisonOffice of the City AuditorDaniel P. BoylanBank of AmericaAnnette DanceWells Fargo and CompanyScott AndersenKRyS GlobalLorice E. BrownFinancial Services CommissionNyron DavidsonAmeritradeCarlota AriasLozano ConsultoresAlice CampbellResearch andLitigation ServicesDelina DhamoNational Bank of EgyptKenneth Barden, Esq.Dan BartaSASBeth BerenbaumAML ConsultantJeff ChapmanIBM i2Martin ChungICDD Pte Ltd@2019 Association of Certified Financial Crime SpecialistsSamantha DillhoffFraud SpecialistSonia DesaiCharles Schwab
CFCS CERTIFICATION EXAMINATION STUDY MANUALJuan DucaliUnited Nations FederalCredit UnionAnnette Escobar, Esq.Astigarraga DavisStanley I. FoodmanFoodman & Associates, P.A.Brian GoldenHSBCRebecca LaPorteFINRAPatricia PottsSightspanJohn Lash, Esq.BDOSaskia RietbroekAML ServicesInternational, LLCTom LasichInternational Centre forAsset RecoveryGuillermo RodriguezBangkok Bank NY BranchAllen G. LoveTD BankLouis SapirmanDun and BradstreetAmanda GoreBotswana Directorateon Corruption andEconomic CrimeAlberto Lozano, Esq.Lozano ConsultoresNicole Saqui, Esq.Conrad & Scherer, LLPMichael M. MartensWells Fargo & CompanySara L. SattenWells FargoJR HelmigLeveraged OutcomesIsabel MedranoWestStar BankLisa Schor BabinDun and BradstreetElizabeth HenryWestern UnionMichael McDonald, Esq.Michael McDonald & AssociatesKatya HiroseFTI ConsultingTina Miller, Esq.Farrell & ReisingerDonald C. SemeskyFinancialOperations ConsultantsSteven Johnston, Esq.Economic Crime Unit ofAlberta JusticeDeborah MorriseyDHS - ICE – HISMarie KerrShamrock Consulting GroupRon KingRetiredPamela C. OgleWells Fargo & CompanyNatasha Pankova TaftBank HapoalimHolly R. ParkWells FargoBen KnieffNICE ActimizeNikki Kowalski, Esq.JPMorgan ChasePaul E. Pelletier, Esq.Mintz, Levin, Cohn,Ferris, GlovskyKen KrysKRyS GlobalRon PenningerIBM i2Stephen J. Shine, Esq.Prudential FinancialMargaret S. SilversWells FargoJeffrey SklarSHC Consulting Group, LLCJames SlearThompson CoburnSteve SmithSRS Consulting, Inc.Delena SpannUnited States Secret Service@2019 Association of Certified Financial Crime Specialists
CFCS CERTIFICATION EXAMINATION STUDY MANUALTABLE OF CONTENTSCHAPTER 1 ACFCS AND THE CHALLENGE OF FINANCIAL CRIME.11The Association of Certified Financial Crime Specialists.11ACFCS Certification Examination.12Construction of the CFCS Certification Exam.13Job and Career Benefits from CFCS Certification. 14Conclusion. 14CHAPTER 2 FINANCIAL CRIME OVERVIEW, COMMONALITIES AND CONVERGENCE.15Financial Crime Overview.15Defining Financial Crime and its Permutations.16Technology Changes Complexion of Financial Crime.16Globalization of Financial Crime. 17Commonalities of All Financial Crimes. 17Capitalizing on the ‘Commonalities’ and Exploring ‘Convergence’. 21Conclusion. 22CHAPTER 3 MONEY LAUNDERING. 23Overview. 23The FinancialAction Task Force . 24Money Laundering Methods. 25The Three Stages of Money Laundering.26The Russian Laundromat.27Money Laundering Indicators. 29Financial Institution Money Laundering Methods and Vehicles.32The Egmont Group of Financial Intelligence Units. 33Non-Financial Institution Money Laundering Vehicles.36The Odebrecht Corruption Scandal. 37The Role of Lawyers, Accountants, Auditors, Notaries and Other Gatekeepers. 38Regulatory Frameworks for Gatekeepers. 38Real Property and Money Laundering.39Structures That Hide Beneficial Ownership. 43The US Money Laundering Law. 47Terrorist Financing. 48Conclusion. 56Chapter 3 Practice Questions.57CHAPTER 4 UNDERSTANDING AND PREVENTING FRAUD.59Overview. 59Understanding and Recognizing Types of Fraud. 60Fraud in loans and mortgages. 64Insurance and health care fraud.70Credit and debit card fraud.71Fraud in government benefits.72Internal Fraud.72Identity Theft and Fraud. 74Detecting and Preventing Fraud.79@2019 Association of Certified Financial Crime Specialists
CFCS CERTIFICATION EXAMINATION STUDY MANUALBasel Committee on Banking Supervision.81Benford’s Law. 84The importance of an enterprise approach to fraud and financial crime. 85Chapter 4 Practice Questions. 86CHAPTER 5 GLOBAL ANTI-CORRUPTION COMPLIANCE AND ENFORCEMENT. 87Overview.
Association of Certified Financial Crime Specialists Rivergate Plaza, 444 Brickell Avenue, Suite P60 Miami, FL 33131 USA Tel: 786-530-8231 Email: customerservice@acfcs.org Copyright 2019. All rights reserved. Association of Certified Financial Crime Specialists. Miami USA Reproduction or transmission of any part of this Manual
