Ch 1a · FATF + evaluations
| FATF founded | 1989 · G7 · Paris |
| Standards | The "40 Recommendations" (2012 rev) |
| Mutual eval dimensions | Technical + Effectiveness (11 IOs) |
| Grey list | "Increased monitoring" — action plan |
| Black list | "Call for action" — DPRK, Iran, Myanmar |
| UAE grey period | Mar 2022 → Feb 2024 |
| FSRBs | 9 · ~200 jurisdictions |
| ML scale (IMF) | 2-5% of global GDP |
Trap: mutual evaluation is BOTH technical compliance AND effectiveness — not just "are laws on the books."
Ch 1b · EU MLDs 1-6
| 1MLD 1991 | Drug proceeds only · banks only |
| 2MLD 2001 | All serious crime + non-financial |
| 3MLD 2005 | Risk-based approach introduced |
| 4MLD 2015-17 | RBA formalised · BO registers · dom. PEPs |
| 5MLD 2018-20 | Crypto · prepaid cards · art · letting |
| 6MLD 2021 | 22 predicates · legal persons · 4y min |
| AMLR + AMLA | Regulation replaces Directive · AMLA op. 2025 |
Trap: 4MLD = RBA + BO registers. 5MLD = crypto + art dealers. Don't swap them.
Ch 1c · UN + international bodies
| Vienna 1988 | UN · criminalise ML of drug proceeds |
| Palermo 2000 (UNTOC) | UN · organised crime · 3 protocols |
| UNCAC 2003 | Only binding global anti-corruption |
| UN sanctions basis | Chapter VII UN Charter · binding all |
| Egmont Group | 160+ FIUs · founded 1995 · SAR sharing |
| Wolfsberg Group | 12+ private banks · CBDDQ |
| OECD (AML) | Anti-Bribery '97 · CRS '14 · CARF '27 |
Trap: Egmont = FIUs (public). Wolfsberg = banks (private). Don't confuse.
Ch 1d · National frameworks + RBA
| UK anchor | POCA 2002 · TA 2000 · MLR 2017 · SAMLA 2018 |
| UK supervisors | FCA · HMRC · OPBAS · ~22 pro bodies |
| US anchor | BSA 1970 · PATRIOT 2001 · AMLA 2020 |
| UAE anchor | Fed Decree-Law 20/2018 (am. 26/2021) |
| RBA cascade | FATF → NRA → sector → firm → customer |
| JMLIT (UK) | NCA + banks · public-private intel |
Trap: UK AML supervision is FRAGMENTED (FATF criticism). Not just the FCA.
Ch 2a · POCA principal offences (s.327-329)
| s.327 | Concealing / disguising / converting / transferring / removing |
| s.328 | Arrangements — "helpers" facilitating |
| s.329 | Acquisition · use · possession |
| Applies to | Anyone (not just regulated sector) |
| Max sentence | 14 years imprisonment |
| Mens rea | Knowledge OR suspicion |
Trap: s.329 has "adequate consideration" defence — buying at market value in good faith. Not available for s.327 or s.328.
Ch 2b · POCA regulated-sector + TF
| s.330 | Failure to disclose (regulated sector) |
| s.331 | Failure to disclose (nominated officer) |
| s.333A | Tipping off (regulated sector) |
| s.342 | Prejudicing an investigation |
| Terrorism Act 2000 | s.15-18 TF offences · s.19-21 disclosure |
| All crimes principle | Any predicate offence · no de-minimis |
Trap: "objective test" for s.330 failure-to-disclose — did you have REASONABLE GROUNDS to suspect? Not just what you actually thought.
Ch 3a · Stages + traditional typologies
| Stage 1 | Placement — get cash into system |
| Stage 2 | Layering — obscure origin (many trans.) |
| Stage 3 | Integration — clean funds appear legit |
| Structuring / smurfing | Break into <threshold amounts |
| Cash businesses | Bars · car washes · nail salons · scrap |
| Trade-based ML | Over/under-invoicing · phantom shipments |
| Money mules | Recruited to move funds (often unwitting) |
Trap: "the three stages" question — memorise the ORDER (placement → layering → integration) and one example of each.
Ch 3b · Modern + emerging typologies
| Crypto mixers | Tornado Cash (sanctioned OFAC 2022) |
| Cross-chain bridges | Convert one chain to another to break trail |
| Privacy coins | Monero, Zcash (many exchanges delisted) |
| NFT wash-trading | Self-trade to fake volume + launder |
| Ransomware payments | Colonial Pipeline 2021 · big-game hunting |
| Sanctions evasion post-2022 | Russia · shell cos in third countries · gold |
| Real estate | Ultimate integration channel · LonRes UK |
Trap: DPRK Lazarus Group behind biggest 2022-24 crypto thefts ($1bn+). State-sponsored TF/ML is major exam theme.
Ch 4a · CDD triggers + tiers
| CDD triggers | New relationship · occasional trans. ≥€15k · suspicion · doubt about data |
| Standard CDD | Identify + verify · BO · purpose |
| SDD | Lower risk · limited verification |
| EDD triggers | PEPs · high-risk 3rd countries · complex/unusual · correspondent bank |
| BO threshold | 25% ownership OR control (default) |
| Ongoing monitoring | Trans. scrutiny · CDD refresh |
Trap: BO threshold is 25% by default but can be LOWER for higher-risk cases — always check the firm's own risk-based policy.
Ch 4b · PEPs + SARs + MLRO
| PEP definition | Prominent public function · high-corruption-risk |
| PEP scope (4MLD+) | Foreign AND domestic (broadened) |
| PEP family/close assoc. | Also subject to EDD |
| PEP status duration | Min 12 months after leaving office |
| SAR = UK | Suspicious Activity Report · to NCA |
| STR = elsewhere | Suspicious Transaction Report |
| DAML request | Consent request — NCA has 7 workdays |
| MLRO role | Nominated officer · sole authority to submit SAR |
Trap: senior mgmt approval REQUIRED to onboard/continue PEP relationships — not just the relationship manager's call.
Ch 5 · Terrorist financing
| TF vs ML | ML hides bad money · TF funds bad acts |
| TF fund sources | Can be LEGITIMATE (donations, salary) or illegitimate |
| TF amounts | Often small · below thresholds |
| UK statute | Terrorism Act 2000 · s.15-18 offences |
| Detection difficulty | Small transactions · legitimate-looking |
| UN 1267 regime | Al-Qaida/ISIL sanctions list · binding |
| NGO / charity risk | Diversion of funds to armed groups |
Trap: TF funds don't have to come from crime — a salary donated to a terrorist organisation is still TF. Focus on DESTINATION, not source.
Ch 6a · Bribery + fraud
| UK Bribery Act 2010 | 4 offences · s.7 corporate failure to prevent |
| s.7 defence | "Adequate procedures" (6 principles) |
| US FCPA 1977 | Bribery of foreign public officials · SEC/DOJ enforce |
| Facilitation payments | Illegal under UKBA · limited FCPA exception |
| Fraud Act 2006 | By representation · by failing to disclose · by abuse of position |
| UK ECCT 2023 | Failure-to-prevent-fraud offence (Sept 2025) |
Trap: UKBA has NO facilitation-payment exception. FCPA has a narrow one — but modern enforcement discourages use.
Ch 6b · Sanctions + tax + market abuse
| UK sanctions | OFSI · SAMLA 2018 · strict liability (Jun 2022) |
| US sanctions | OFAC · SDN list · US persons/USD/US goods |
| EU sanctions | Council Regulations · direct effect |
| Tax evasion (UK) | Criminal Finances Act 2017 · CCO offence |
| MAR (EU/UK) | Market Abuse Reg · insider dealing · manip. |
| Insider info test | Precise · non-public · price-sensitive |
| Off-channel comms | $2bn+ fines · WhatsApp/text scandal 2022+ |
Trap: UK OFSI moved to STRICT LIABILITY for sanctions breaches in June 2022 — no need to show intent. Higher enforcement risk.
Ch 7 · Recent developments
| FATF Rec 15 (2019) | VASPs covered · same AML as banks |
| Travel Rule | Originator + beneficiary info with transfer |
| Travel Rule threshold | $/€1,000 (FATF · some jurisdictions lower) |
| MiCA (EU) | Crypto regulation · in force 2024-25 |
| EU AMLA | Operational 2025 · direct EU supervisor |
| US CTA (part of AMLA 2020) | BO reporting to FinCEN · legal-challenge delays |
| UK ECCT 2023 | Corp criminal · identification doctrine reform |
| AI in FC detection | ML models · false-positive reduction |
Trap: FATF Travel Rule threshold is $/€1,000 but individual jurisdictions may apply lower or zero — check local rule. UK VASPs use €1,000 for most, £0 for cross-border.
Exam-day metadata
| Format | 50 MCQs · 60 minutes |
| Pass mark | 70% (35/50) |
| Delivery | Computer-based · Pearson VUE |
| Ch 4 weight | 15/50 questions (~30%) — dominant |
| Ch 1 + 3 + 5 + 7 combined | 19/50 questions (framework + typologies + TF + recent) |
| Ch 2 + 6 combined | 16/50 questions (offences + other crimes) |
| "EXCEPT" questions | Read carefully · tick the ODD one out |
| Multi-select (e.g. "all of the following") | Verify EVERY option before answering |
Strategy: spend 40 of the 60 minutes on Ch 4 material — CDD/EDD/SDD, PEPs, SARs, MLRO. It's 30% of the exam and everything else you can revise in half the time.