CFCS 

FLASHCARDS

The balance of short-term

debt an organization owes to it
creditors, like payments to
Accounts payable vendors and suppliers. It
appears under current
liabilities on a balance sheet.
1a 1b

1 2

The balance of money owned to an

organization for goods or services
provided to customers but not yet paid
Accounts receivable for. Any outstanding invoices or debts
owed by clients would be entered as
accounts receivable on financial
statements.
2a 2b

3 4
CFCS FLASHCARDS

A scheme in whichfraudsters
offer securities, lottery
winnings or other seemingly
Advance Fee Fraud attractive false investments,
but ask victims to pay an up-
front fee to participate.
3a 3b

5 6

Refers to scams that target

members of groups which share
Affinity Fraud some central characteristic, such as
members of the same religion,
ethnic community or profession.
4a 4b

7 8
CFCS FLASHCARDS

A mathematical theory that sayscertain

digits appear more frequently than
others at certain positions in real world
Benford's Law data sets. It can be used to detect
anomalies in financial statements that
could indicate fraud.
5a 5b

9 10

One of the earliest and most successful

cryptocurrencies, it is a decentralized
form of electronic money and payment
Bitcoin system. It allows for the transfer of value
directly between a user network, with no
intermediary institutions.
6a 6b

11 12
CFCS FLASHCARDS

BMPE is a system by which illicit

proceeds are laundered through a
Black Market Peso combination of exchange of currencies
Exchange and international trade in goods. Despite
its name, it does not have to involve the
use of pesos.
7a 7b

13 14

The act of offering or receiving

something of value in exchange for
an action, favor or influence that
Bribery the recipient would otherwise not
have provided. It typically involves
government officials as recipients.
8a 8b

15 16
CFCS FLASHCARDS

A cyberattack where the perpetrator

sends email messages masquerading as
someone else, to trick a target into
Business Email Compromise taking some action. Often, the attacker
pretends to be a company executive and
requests a wire transfer or urgent
payment.
9a 9b

17 18

A term that covers the direct

costs incurred by the company
in the production of thegoods
Cost of Goods Sold or services it sells. It appears
on the company's balance
sheet.
10a 10b

19 20
CFCS FLASHCARDS

Distributed denial of service, or

DDoS, is a cyberattack that
attempts to disrupt a computer
DDoS Attack network or website by flooding the
target with pointless traffic from
multiple sources.
11a 11b

21 22

The act of demanding or

obtaining something of
Extortion
value, usually money,
through force or threats.
12a 12b

23 24
CFCS FLASHCARDS

An international, intergovernmental
organization composed of members frommore
than 30 countries, whose primary purpose is
Financial Action Task Force the development and promotion of policies, at
(FATF) both national and international levels, to
combat financial crime. It also conducts mutual
evaluations of jurisdictions' AML regimes, and
issues lists of deficient countries.
13a 13b

25 26

A U.S. law that generally requires

foreign financial Institutions to search
their records for accounts held by U.S.
Foreign Account Tax persons, and report on the assets and
Compliance Act (FATCA) identities of such persons to tax
authorities. Institutions or account
holders that do not comply are subject
to penalties.
14a 14b

27 28
CFCS FLASHCARDS

A U.S. law that prohibits US persons from

bribing of foreign officials to obtain or
Foreign Corrupt Practices retain business. It also requires
companies to keep accurate books and
Act (FCPA) records and maintain accounting controls
against bribery. It has a broad
international scope and application.
15a 15b

29 30

A legal entity used by another company

or organization to conceal ownership or
involvement in activities. In financial crime
Front Company schemes, front companies are often
seemingly legitimate businesses being
used to launder funds or disguise illicit
transactions.
16a 16b

31 32
CFCS FLASHCARDS

In securities trading, front-running

involves buying or selling stock or other
assets in advance of a large pending
transaction that is not yet publicly known.
Front Running For example, a broker could trade on
stock ahead of a large purchase by an
institutional client, knowing the purchase
will increase the stock price.
17a 17b

33 34

A system of exchanging value,

based on trust relationships
between money dealers, or
Hawala System hawaladars. It is common in the
Middle East, North Africa and
parts of Southeast Asia.
18a 18b

35 36
CFCS FLASHCARDS

Refers to civil asset recovery

cases brought against a
In rem piece of property, account,
or other object of value,
rather than against a person.
19a 19b

37 38

The practice of trading in stock or

other securities using confidential,
Insider Trading non-public information to one's
own advantage. It is illegal in most
jurisdictions.
20a 20b

39 40
CFCS FLASHCARDS

Putting the laundered proceeds back into

the legitimate economy to appear
legally derived, through real estate
Integration purchases, investments and other means.
It is typically the third and final stage in
money laundering schemes.
21a 21b

41 42

Separating illicit proceeds from

their source and origin through
layers of financial transactions
Layering and business activities. It is
typically the second step in
money laundering schemes.
22a
22b

43 44
CFCS FLASHCARDS

A formal request for some type of legal

assistance made from one court to a
court in another jurisdiction. The process
Letters Rogatory for letters rogatory is laid out by the
Hague Convention on Taking Evidence
Abroad.
23a 23b

45 46

A form of interest granted on an item of

property to secure the payment of a
debt, such as a mortgage or taxes. An
Lien example is a tax lien placed on a house
by government authorities due to unpaid
property taxes.
24a 24b

47 48
CFCS FLASHCARDS

A formal notice of a pending

legal action. In the U.S., it
Lis Pendens often refers to notice of a
lawsuit claiming or disputing
ownership of real estate.
25a 25b

49 50

Refers to software designed

to cause harm to computer
Malware systems, through disruption,
damage, unauthorized
access or the theft of data.
26a 26b

51 52
CFCS FLASHCARDS

Also called a "freezing order,"

it is a court order that typically
Mareva Injuction requires that an asset not be
transferred or removed without
permission of the courts.
27a 27b

53 54

A type of bilateral agreement between the

United States and another country, it commits
the other country to help implement the US tax
compliance law, FATCA. If a country enters a
Model IAgreement Model I agreement, its financial institutions can
report US customers to their own tax
authorities, rather than the US Internal Revenue
Service.
28a 28b

55 56
CFCS FLASHCARDS

A type of bilateral agreement between the

United States and another country, it
commits the other country to help
implement FATCA, the US tax compliance
Model II Agreement law. If a country enters a Model II
agreement, its financial institutions can
report aggregate information on US
customers tothe Internal Revenue Service.
29a 29b

57 58

An agreement between two or more

jurisdictions for mutual support in the
enforcement of criminal laws. MLAT
Mutual Legal Assistance requests are made between law
Treaty (MLAT) enforcement and typically cover things
like sharing information in cross-border
criminal cases, serving court orders, and
seizing assets.
30a 30b

59 60
CFCS FLASHCARDS

In the financial crime context, it

refers to adverse information on a
customer or other party thataffects
Negative News their financial crime risk and is
available through public means,
such as internet searches.
31a 31b

61 62

A person or legal entity whose name is

given as having ownership of an asset,
title, account, company, etc., but who is
Nominee not the actual owner. Nominees can be
used for legitimate purposes, but can
also be used to conceal ownership in
financial crime schemes.
32a 32b

63 64
CFCS FLASHCARDS

A branch of the U.S. Treasury

Department, OFAC administers and
Office of Foreign Assets enforces economic and trade sanctions
Control (OFAC) applied by the United States. Maintains a
list of "specifically designated nationals,"
with whom transactions are prohibited.
33a 33b

65 66

An intergovernmental organization founded to

stimulate economic progress and world trade,
with over 35 member countries, including some
Organization for Economic of the world's largest economies. The OECD
runs a number of initiatives to fight financial
Cooperation and Development crime, including the Common Reporting
(OECD) Standard, an international system of tax
information exchange.
34a 34b

67 68
CFCS FLASHCARDS

The initial entry of il icit funds

or proceeds of crime into the
Placement financial system. It is typical y
the first step in money
laundering schemes.
35a 35b

69 70

Individuals who are or have been

entrusted with prominent public
Politically Exposed Person functions, such as senior politicians,
executives of state-owned companies
(PEP) and others. Also includes the family
members and close associates of such
individuals.
36a 36b

71 72
CFCS FLASHCARDS

A fraudulent "investment" operation

that pays returns to its investors
from their own money or the money
Ponzi Scheme paid by subsequent investors, rather
than by returns generated from any
underlying investment.
37a 37b

73 74

A fraud technique that typically involves

purchasing stocks or other securities at a
cheap price, then artificially inflating the
Pump and Dump price through false and misleading
information, or "hype." It often takes
advantage of less-regulated "penny
stock" markets.
38a 38b

75 76
CFCS FLASHCARDS

A fraud scheme in which the promoter

promises big profits to investors based
Pyramid Scheme on their ability to recruit other persons to
join the investment opportunity, and not
based on sales or investmentresults.

39a 39b

77 78

A transaction in which a person or

company sells an asset or transfers funds
to another person or company, while
Round-Tripping agreeing to buy back the assets or have
the funds returned later. It can be used
as a form of layering or in tax evasion
schemes.
40a 40b

79 80
CFCS FLASHCARDS

An aged version of a shell company, a

shelf is typically created then left inactive
for several years or more. At some point
the shelf company creator will then sell
Shelf company it. Shelfs have legitimate uses but can
also be used by financial criminals to
lend a sense of legitimacy to their
operations.
41a 41b

81 82

A company or corporation that exists

only on paper and has no physical
location, and typically no employees or
Shell Company day-to-day operations. Shell companies
can be used to open accounts, hold
assets and conduct transactions, for
legitimate or illicit purposes.
42a 42b

83 84
CFCS FLASHCARDS

A fraud technique thatinvolves

sending an email or electronic
communication targeted to a
Spear-Phishing specific person, group or
organization, to steal sensitive
information or deliver malware.
43a 43b

85 86

A type of attack in which a person or

program impersonates someone else in
an effort to obtain sensitive information
Spoofing or convince the target to carry out some
action. An example is spoofed email
messages.
44a 44b

87 88
CFCS FLASHCARDS

In the financial crime context, stripping

involves removing the name and
destination from SWIFT messaging on
Stripping wire transfers to mask the identity and/or
the location of a originator or
beneficiary. It is usually done to evade
sanctions.
45a 45b

89 90

Reports filed by financial institutions, or

other businesses as required by
regulations, on transactions or customer
Suspicious Transaction Report activity that is suspicious or potentially
(STR)/Suspicious Activity Report indicative of illicit activity. SAR/STR
databases are typically accessible by
(SAR) law enforcement to support
investigations.
46a 46b

91 92
CFCS FLASHCARDS

A U.K. law passed in 2010 that

overhauled British anti-corruption laws
and criminalized bribery, being bribed,
U.K. Bribery Act bribery of foreign officials and the failure
of companies to prevent bribery. It
applies to any individual or company
with connections to the U.K.
47a 47b

93 94

A UN office intended to help create a

global response to the interrelated
United Nations Office on Drugs issues of drug trafficking, crime
prevention, terrorism, and political
and Crime (UNODC)
corruption. It provides research,
reporting and recommendations related
to AML and financial crimepolicy.
48a 48b

95 96
CFCS FLASHCARDS

The U.S. states of Delaware, Nevada and

Wyoming allow for largely anonymous
company formation and have a robust
network of company services providers.
U.S. Secrecy Havens They are attractive to individuals seeking
anonymous legal entities and are
sometimes considered as secrec havens.
49a 49b

97 98

Also called "voice phishing," it refers to

fraudulent calls or emails purporting to
be from a legitimate source like a bank
Vishing or government agency, made in an effort
to obtain sensitive personal information
from a target.
50a 50b

99 100
CFCS FLASHCARDS

An international financial institution that

provides loans and financing to
developing countries for capital and
development projects. It is involved in
World Bank anti-corruption initiatives around the
world, and maintains the Doing Business
Database, a catalog of business-related
laws and regulations around the world.
51a 51b

101 102