ACAMS Exam 213 Questions with Verified Answers
Bank Draft - CORRECT ANSWER Vulnerable to money laundering because it represents a reputable
... [Show More] international monetary instrument drawn on a reputable institution, and is often made payable-in cash-upon presentation and at the issuing institution's account in another country.
Bank for International Settlements (BIS) - CORRECT ANSWER AN international organization that serves as a bank for central banks and which fosters international monetary and financial cooperation with the purpose of attaining stability in the world economy. It hosts the Secretariat of the Basel Committee on Banking Supervision. The Committee has formulated broad supervisory standards and guidelines on Know Your Customer issues.
Bank Secrecy - CORRECT ANSWER Refers to laws and regulations in countries that prohibit banks from disclosing information about an account - or even revealing its existence - without the consent of the account holder. Impedes the flow of information across national borders among financial institutions and their supervisors. One of FATF's 40 Recommendations states that countries should ensure that secrecy laws do not inhibit the implementation of the FATF Recommendations
Bank Secrecy Act (BSA) - CORRECT ANSWER The primary U.S. anti-money laundering regulatory statue enacted in 1970 and most notably amended by the USA Patriot Act in 2001. Among other measures, it imposes money laundering controls on financial institutions and many other businesses, including the requirement to report and to keep records of various financial transactions.
Bank Secrecy Act (BSA) Compliance Program - CORRECT ANSWER A program that U.S.-based financial institutions—as defined by
the Bank Secrecy Act—are required to establish and implement
in order to control money laundering and related financial
crimes. The program's components include at a minimum: the
development of internal policies, procedures and controls; the
designation of a compliance officer; ongoing employee training;
and an independent audit function to test the program
Bare Trust - CORRECT ANSWER Also known as a dry, formal, naked, passive, or simple trust, in
which the trustees have no duties other than to convey the trust
property to beneficiaries when called upon to do so. Bare trusts
are vulnerable to money laundering because the final beneficiary
is unknown.
Basel CDD Paper - CORRECT ANSWER A guidance paper on Customer Due Diligence (CDD) for
banks issued by the Basel Committee on Banking Supervision
(BCBS) in October 2001. The paper includes sound Know Your Customer policies and procedures that, according
to the Committee, are critical to protecting the safety and
soundness of banks and the integrity of banking systems. In
February 2003, the Basel Committee on Banking Supervision
issued "General Guide to Account Opening and Customer
Identification." This document is an attachment to the Basel
CDD Paper. See www.bis.org/bcbs.
Basel Committee on Banking Supervision (Basel Committee) - CORRECT ANSWER The Basel Committee was established by the G-10's central
bank of governors in 1974 to promote sound supervisory
standards worldwide. Its secretariat is appointed by the Bank
for International Settlements in Basel, Switzerland. It has
issued, among others, papers on customer due diligence for
banks, consolidated KYC risk management, transparency in
payment messages, due diligence and transparency regarding
cover payment messages related to cross-border wire
transfers, and sharing of financial records among jurisdictions
in connection with the fight against terrorist financing. See
www.bis.org/bcbs.
Batch Processing - CORRECT ANSWER A type of data processing and data communications
transmission in which related transactions are grouped together
and transmitted for processing, usually by the same computer
and under the same application
Batch Transfer - CORRECT ANSWER Transfer comprising a number of individual wire transfers that
are sent to the same financial institution, and which may be
ultimately intended for different persons.
Bearer Form - CORRECT ANSWER In relation to a certificate, share transfer or other document, a
bearer form enables a designated investment or deposit to be
sold, transferred, surrendered or addressed to a bearer without
the need to obtain further written instructions.
Bearer Negotiable Instruments - CORRECT ANSWER Include monetary instruments in bearer form such as: negotiable
instruments (including checks, promissory notes and money
orders) that are either in bearer form, are endorsed without
restriction, are made out to a fictitious payee, or are otherwise in
such form that title thereto passes upon delivery.
Bearer Share - CORRECT ANSWER Negotiable instruments that accord ownership in a corporation
to the person who is in physical possession of the bearer share
certificate.
Bearer Share Certificate - CORRECT ANSWER A negotiable corporate share certificate made out to "Bearer"
and not in the name of an individual or organization.
Benami Account - CORRECT ANSWER Also called a nominee account. Held by one person or entity on
behalf of another or others, Benami accounts are associated
with the hawala underground banking system of the Indian
subcontinent. A person in one jurisdiction seeking to move
funds through a hawaladar to another jurisdiction may use a
Benami account or Benami transaction to disguise his/her true
identity or the identity of the recipient of the funds.
Beneficial Owner - CORRECT ANSWER The natural person who ultimately owns or controls an account
through which a transaction is being conducted. It also
incorporates those persons who exercise ultimate effective
control over a legal person or arrangement.
Beneficiary - CORRECT ANSWER All trusts (other than charitable or statutory-permitted noncharitable
trusts) must have beneficiaries, which may include
the settlor. Trusts must also include a maximum time frame,
known as the "perpetuity period," which normally extends up
to 100 years. While trusts must always have some ultimately
ascertainable beneficiary, they may have no defined existing
beneficiaries. Trusts may only have objects of a power until
some person becomes entitled as beneficiary to income
or capital on the expiry of a defined period, known as the
"accumulation period." The latter period is normally coextensive
with the trust perpetuity period, which is usually
referred to in the trust deed as the "trust period."
Biometrics - CORRECT ANSWER The science of identifying features that distinguish one
person from another. Fingerprinting, voice recognition and
iris (eye) scans are three forms of biometrics technology
that may someday render pen-to-paper signatures outdated.
Certain institutions use biometrics to verify the identity of
their customers. With the advent of customer identification
regulations, biometric tools may become more common in
financial institutions.
Black Market Peso Exchange (BMPE) - CORRECT ANSWER The Colombian Black Market Peso Exchange (BMPE) is
an example of a complex method of trade-based money
laundering. The BMPE originally was driven by Colombia's
restrictive policies on currency exchange. To circumvent those
policies, Colombian businesses bypassed the government
levies by dealing with peso brokers that dealt in the black
market or parallel financial market. Colombian drug traffickers
took advantage of this method to receive Colombian pesos
in Colombia in exchange for U.S. drug dollars located in the
United States. According to the U.S. State Department's 2007
INCSR, similar black market exchange systems are found in
Venezuela and in the tri-border region of Argentina, Brazil,
and Paraguay. Trade goods in Dubai, as well as Chinese and
European manufactured trade items, are being purchased
through narcotics-driven systems similar to the BMPE. The
Black Market Peso Exchange system operates through brokers
who purchase narcotics proceeds in the United States from the
cartels and transfer pesos to the cartels from within Colombia.
The dollars are placed — that is, "laundered" — into the United
States financial system by the peso broker without attracting
attention.
The dollars are then "sold" by the brokers to businessmen in
Colombia (or other country) who need dollars to buy United
States goods for export.
Goods ready for export are often actually paid for by the peso
broker, using the purchased narcotics dollars, on behalf of the
Colombian (or other country's) importer.
Blank Check Company - CORRECT ANSWER A type of company designed to be used by private corporations
intending to issue publicly traded shares through "reverse
mergers" without the high expenses involved in making their
own initial public offering. Blank check companies often have
few assets, engage in little business activity, and have no
business plan or experienced management.
Bookmaker - CORRECT ANSWER A bookmaker accepts bets from individuals on a variety of
matters, mostly sporting events. Bookmakers are vulnerable to
money laundering, since launderers may offer their customers
money for winning betting slips, often 7 to 10 percent above the
value of the winnings. The launderer then collects clean money
from the bookmaker.
Branch - CORRECT ANSWER A place of business that forms a legally dependent part of a
financial institution and carries out directly all or some of the
transactions inherent in the business of that financial institution
Bureau de Change - CORRECT ANSWER Also called "casa de cambio" or "exchange office," a bureau
de change offers a range of services that are attractive to
money launderers: currency exchange and consolidation of
small denomination bank notes into larger ones; exchange of
financial instruments such as travelers checks, money orders
and personal checks; and telegraphic transfer facilities. In some
countries, such businesses are not as heavily scrutinized for
money laundering as are traditional financial institutions. Also,
their customers are often occasional, making it more difficult for
these businesses to "know their customers."
Bust-Out - CORRECT ANSWER A scheme in which the use or extension of credit is obtained
and is increased fraudulently while the perpetrators avoid
having to pay back the illegally obtained credit or goods.
Typically, a bust-out ring will operate a shell or front business
that accepts credit purchases on stolen or fraudulently obtained
credit cards. The criminals run the cards or numbers through
credit card terminals, but either do not provide any goods or
services or provide stolen or non-licensed goods. The innocent
credit card company credits the account of the front business.
Before the transactions can be reversed, the criminals have
moved the funds from the accounts of the front business.
The cardholders who knowingly participate in these bust-out
schemes generally refuse to pay the credit card companies for
their "purchases." These people have either obtained cards
with fraudulent or stolen identification or otherwise cannot be
found. Bust-out schemes have been very popular in creating
large bankruptcy frauds in which business entities secure loans
in excess of the actual value of the company or property and
then disappear with the money, leaving the lender to take a
substantial loss.
Cardholder - CORRECT ANSWER Person to whom a financial transaction card is issued, or an
additional person authorized to use the card
Caribbean Financial Action Task Force (CFATF) - CORRECT ANSWER A FATF-style regional body comprising Caribbean states,
including Aruba, the Bahamas, the British Virgin Islands, the
Cayman Islands and Jamaica. See www.cfatf.org.
Cash-Based Business - CORRECT ANSWER Any business in which customers usually pay with cash for
the products or services provided, such as restaurants, pizza
delivery services, taxi firms, coin-operated machines or car
washes. Some money launderers run or use cash-based
businesses to commingle illegally obtained funds with cash
actually generated by the business.
Cash Collateralized Loans - CORRECT ANSWER A cash collateralized loan has cash deposits as the loan's
collateral. The cash deposits can sometimes reside in another
jurisdiction.
Cash Deposits - CORRECT ANSWER Sums of money placed in a financial institution's accounts.
Vulnerable to money laundering in the "placement phase,"
as criminals move their cash into the non-cash economy by
making deposits into accounts at financial institutions.
Cashier's Check - CORRECT ANSWER Common monetary instrument often purchased with cash.
Used for laundering purposes, cashier's checks provide an
instrument drawn on a reputable institution, such as a bank or
credit union.
CDPC (French: Comité Européen pour les Problèmes
Criminels) - CORRECT ANSWER European Committee on Crime Problems of the Council of
Europe. A subcommittee of the CDPC is MONEYVAL, formerly
PC-R-EV, the select committee of experts on the evaluation of
anti-money laundering measures in European countries that
are not members of FATF.
Certification - CORRECT ANSWER A formal assertion in writing which, under the USA Patriot
Act, is used by U.S. regulators in different contexts, including
a written statement by a respondent bank signed by its duly
authorized representative certifying that the bank does not
do business with shell banks (under Section 313 of the USA
Patriot Act). It can also be a written representation provided
by a U.S. federal agent stating that the matter for which he or
she is seeking information from financial institutions under Sec.
314(a) of the USA Patriot Act regulations is linked to money
laundering or terrorist financing.
Clearing Account - CORRECT ANSWER Also called an "omnibus" or "concentration account." Held by
a financial institution in its name, a clearing account is used
primarily for internal administrative or bank-to-bank transactions
in which funds are transmitted and commingled without
personally identifying the originators. The USA Patriot Act
prohibits the use of such accounts for customer transactions.
Collection Accounts - CORRECT ANSWER Immigrants from foreign countries deposit many small amounts
of currency into one account where they reside, and the
collected sum is transferred to an account in their home country
without documentation of the sources of the funds. Certain 291
Glossary of Anti-Money Laundering Terms
ethnic groups from Asia or Africa may use collection accounts
to launder money
Collective Knowledge - CORRECT ANSWER The sum of the knowledge held separately by a financial
institution's directors, officers and employees regarding a
certain issue, customer or account. The notion of collective
knowledge can be used to suggest corporate responsibility for
compliance and liability for non-compliance. For example, the
financial institution's knowledge is the totality of what all of the
employees know within the scope of their employment. So, if
Employee A knows one facet of a customer's information, B
knows another facet of it, and C a third facet of it, the institution
knows all the facets of the customer's information.
Commission Rogatoire - CORRECT ANSWER Also known as letters rogatory, commission rogatoires are
written requests for legal or judicial assistance sent by the
central authority of one country to the central authority of another
when seeking evidence from the foreign jurisdiction. The letter
typically specifies the nature of the request, the relevant criminal
charges in the requesting country, the legal provision under
which the request is made, and the information sought.
Concentration Risk - CORRECT ANSWER Concentration risk primarily applies to the asset side of the
balance sheet. As a common practice, supervisors not only
require banks to have information systems to identify credit
concentrations, but also set limits to restrict bank exposure
to single borrowers or groups of related borrowers. Without
knowing exactly who the customers are (through Know Your
Customer policies) and their relationship with other customers,
the bank is not able to measure its concentration risk, which
is particularly relevant in the context of related counter-parties
and connected lending. On the liability side, concentration risk
is associated with funding risk, especially the risk of early and
sudden withdrawal of funds by large depositors that could harm
an institution's liquidity.
Confidentiality - CORRECT ANSWER Keeping certain facts, data and information out of public
or unauthorized view. In the U.S., U.K. and many other
jurisdictions, confidentiality is required when filing suspicious
transaction or activity reports — the filing institution's
employees cannot notify a customer that a report has been
filed. In another context, a breach of confidentiality can occur
when an institution discloses client information to enforcement
agencies or a financial intelligence unit in violation of the
jurisdiction's bank secrecy laws.
Confiscation - CORRECT ANSWER Includes forfeiture where applicable, and means the permanent
deprivation of funds or other assets by order of a competent
authority or a court. Confiscation or forfeiture takes place
through a judicial or administrative procedure that transfers the
ownership of specified funds or other assets to the state. Upon
transfer, the person(s) or entity(ies) that held an interest in the
specified funds or other assets at the time of the confiscation or
forfeiture lose all rights, in principle, to the confiscated or forfeited
assets. Confiscation or forfeiture orders are usually linked to a
criminal conviction or a court decision whereby the confiscated
or forfeited property is determined to have been derived from or
intended for use in a violation of the law. Confiscation is a central
strategic tool that is required in order to take effective action
against money laundering and terrorist financing. It is crucial
that criminal justice systems make provisions for efficient and
effective methods of tracing, freezing and eventually confiscating
proceeds of criminal activity. Mutual legal assistance treaties can
provide for confiscation of assets in one jurisdiction based upon
prosecutions elsewhere
Constructive (Involuntary) Trust Liability - CORRECT ANSWER The imposition of trustee obligations upon a financial institution
deemed to "know" that property in its possession belongs to
Core Principles - CORRECT ANSWER Core Principles for Effective Banking Supervision issued by the
Basel Committee on Banking Supervision, the Objectives and
Principles for Securities Regulation issued by the International
Organization of Securities Commissions, and the Insurance
Supervisory Principles issued by the International Association
of Insurance Supervisors.
Corporate Vehicles - CORRECT ANSWER Defined in FATF's Consultation Paper as:
1. Corporations:
(a) Private limited companies and public limited
companies whose shares are not traded on a stock
exchange.
(b)International business companies/exempt
companies.
2. Trusts.
3. Foundations.
4. Limited partnerships and limited liability partnerships.
Occasionally it is difficult to identify the persons who are the
ultimate beneficial owners and controllers of corporate vehicles,
which makes the vehicles vulnerable to money laundering.
FATF has several recommendations that deal with customer
due diligence on corporate vehicles and the transparency and
beneficial ownership of legal persons and arrangements.
Correspondent Banking - CORRECT ANSWER The provision of banking services by one bank (the
"correspondent bank") to another bank (the "respondent bank").
Large international banks typically act as correspondents for
thousands of other banks around the world. Respondent banks
may be provided with a wide range of services, including cash
management (e.g., interest-bearing accounts in a variety of
currencies), international wire transfers of funds, check clearing
services, payable-through accounts and foreign exchange
services.
Council of Europe Convention on Laundering, Search, Seizure
and Confiscation of the Proceeds from Crime - CORRECT ANSWER The Convention was adopted by the Committee of Ministers
of the Council of Europe in September 1990, which addressed
all types of criminal offenses and thereby has greater impact
than the Vienna Convention. The offense of money laundering
was extended to include money laundering associated with
all serious offenses, not just drug trafficking. In May 2005, a
revised convention was adopted.
Counter-Terrorism Committee (CTC) - CORRECT ANSWER A United Nations Committee established in 2001 pursuant to
Security Council Resolution 1373 (2001). Concerning counterterrorism,
the CTC consists of all 15 Security Council members.
The committee monitors the implementation of UN Security
Council Resolution 1373, and aims to increase the capacity of
member states to fight terrorism financing.
Credit Cards - CORRECT ANSWER A plastic card with a credit limit used to purchase goods and
services and to obtain cash advances on credit. The cardholder
is subsequently billed by the issuer for repayment of the credit
extended. Credit cards may be used to launder money when
payments of the amounts owed on the card are made with
criminal money. Credit Finance
The use of credit to buy expensive items, and the subsequent
payment of the borrowed credit with criminal funds. The criminal
borrows funds to purchase a high value asset, such as a yacht,
Criminal Proceeds - CORRECT ANSWER Any property derived from or obtained, directly or indirectly,
through the commission of a crime.
Cross Border - CORRECT ANSWER Used in the context of activities that involve at least two
countries, such as wiring money from one country to another or
taking currency across a border.
Cross-Border Transfer - CORRECT ANSWER Any wire transfer in which the originator and beneficiary
institutions are located in different jurisdictions. A cross-border
transfer also refers to any chain of wire transfers that has at
least one cross-border element.
Cuckoo Smurfing - CORRECT ANSWER A form of money laundering linked to alternative remittance
systems in which criminal funds are transferred through the
accounts of unwitting persons who are expecting genuine funds
or payments from overseas. The term cuckoo smurfing first
originated in investigations in the U.K., where it is a significant
money laundering technique
Currency - CORRECT ANSWER Banknotes and coins that are in circulation as a medium of
exchange.
Currency Smuggling - CORRECT ANSWER The illicit movement of large quantities of cash across borders,
often into countries with strict banking secrecy, poor exchange
controls or poor anti-money laundering legislation.
Currency Transaction Report (CTR) - CORRECT ANSWER A report that documents a currency transaction that exceeds
a certain monetary threshold. A CTR can also be filed on
multiple currency transactions that occur in one day that
add up to or are greater than the required reporting amount.
In some countries, including the U.S., currency transaction
reports must be filed with government authorities under specific
circumstances.
Custodian - CORRECT ANSWER A bank, financial institution or other entity that is responsible
for managing or administering or safekeeping assets for other
persons or institutions. Typically, custodians are not active,
aggressive managers of the assets in question, but, instead,
serve to passively conserve them.
Custody - CORRECT ANSWER The act or authority of safeguarding and administration of
clients' investments or assets
Customer Due Diligence (CDD) - CORRECT ANSWER In terms of money laundering controls, it means implementing
adequate policies, practices and procedures that promote
high ethical and professional standards for dealing with
customers and are designed to prevent banks from being used,
intentionally or unintentionally, by criminal elements. Customer
due diligence includes not only establishing the identity of
customers, but also monitoring account activity to identify those
transactions that do not conform with the normal or expected
transactions for that customer or type of account.
Customer Identification Program (CIP) - CORRECT ANSWER The policies and procedures of an institution that aim to identify
and verify the identity of its customers. In general, the program
must be in writing, have senior board approval and include
procedures for customer notification.
Customer Information Order - CORRECT ANSWER Requires all financial institutions—or a targeted sample of
banks and other financial institutions—to provide the details
of any accounts held by the person under investigation,
thus enabling an investigator to find out where the suspect's
accounts are held.
Debit Card - CORRECT ANSWER A card issued by a financial institution that permits an accountholder
to draw funds from a pre-existing account in his or
her name for the purpose of paying obligations or for making
purchases in other locations or businesses. Debit cards have
been found to be convenient tools to launder criminal proceeds,
especially if they are issued by financial institutions in secrecy
havens because they leave few, if any, traces of the debited
sources of funds.
Debit Transaction - CORRECT ANSWER A transaction that involves the use of a bankcard to purchase
goods and services or to obtain cash. The transaction
automatically debits the cardholder's deposit account.
Designated Categories of Offense - CORRECT ANSWER In its 40 Recommendations of 2003, FATF issued for the first
time a list of "designated categories of offense" that enumerates
crimes that may lead to money laundering prosecutions. Each
country may decide how it will define those offenses and their
elements. Many nations do not specify which crimes can serve
as predicates for laundering prosecutions and merely state
that all serious felonies may be predicates. Others, such as the
U.S., specify long lists of crimes that must be present in order for a money laundering prosecution to proceed. Under the
FATF definition, the designated categories are:
Participation in an organized criminal group and
racketeering;
Terrorism, including terrorist financing;
Trafficking in human beings and migrant smuggling;
Sexual exploitation, including sexual exploitation of children;
Illicit trafficking in narcotic drugs and psychotropic
substances;
Illicit arms trafficking;
Illicit trafficking in stolen and other goods;
Corruption and bribery;
Fraud;
Counterfeiting currency;
Counterfeiting and piracy of products;
Environmental crime;
Murder, grievous bodily injury;
Kidnapping, illegal restraint, and hostage-taking;
Robbery or theft;
Smuggling;
Extortion;
Forgery;
Piracy; and
Insider trading and market manipulation.
Designated Non-Financial Businesses and Professions - CORRECT ANSWER With its 2003 revisions, FATF indicated the following
businesses should comply with the 40 Recommendations.
Casinos (including Internet casinos).
Real estate agents.
Dealers in precious metals.
Dealers in precious stones.
Lawyers, notaries, other independent legal professionals
and accountants. Refers to sole practitioners, partners
and employed professionals within professional firms. It
is not meant to refer to "internal" professionals who are
employees of other types of businesses, or to professionals
working for government agencies who may already be
subject to measures that would combat money laundering.
Trust and company service providers. Refers to all persons
or businesses that are not covered elsewhere under the
Recommendations, and which provide any of the following
services to third parties:
Acting as a formation agent of legal persons.
Acting as (or arranging for another person to act as)
a director or secretary of a company, a partner of a
partnership, or a similar position in relation to other legal
persons.
Providing a registered office, business address or
accommodation, correspondence or administrative address
for a company, a partnership or any other legal person or
arrangement.
Acting as (or arranging for another person to act as) a
trustee of an express trust.
Acting as (or arranging for another person to act as) a
nominee shareholder for another person.
Disclosure Order - CORRECT ANSWER A document that requires a person who has information
relevant to an investigation to answer questions at an interview,
to provide information, or to produce documentation. The order
can be exercised not only against a person whose assets are
under investigation, but also against a third party, such as a
financial institution
Domestic Transfer - CORRECT ANSWER Wire transfer in which the originator and beneficiary institutions
are located in the same jurisdiction. A domestic transfer
therefore refers to any chain of wire transfers that takes place
entirely within the borders of a single jurisdiction, even though
the system used to send the wire transfer may be located in
another jurisdiction.
Downstream Correspondent Clearer - CORRECT ANSWER A correspondent banking client who receives correspondent
banking services from one institution and provides correspondent
banking services to other financial institutions in the same
currency as the account it maintains with the institution.
Eastern and Southern African Anti-Money Laundering Group
(ESAAMLG) - CORRECT ANSWER A FATF-style regional body comprising fourteen countries from
the Eastern region of Africa down to the Southern tip of Africa.
It was established in 1999. See www.esaamlg.org.
Egmont Group of Financial Intelligence Units - CORRECT ANSWER In 1995, a number of national financial intelligence units (FIUs)
began working together in an informal organization known as
the Egmont Group, named for the site of its first meeting in the
Egmont-Arenberg Palace in Brussels. The goal of the group is
to provide a forum for FIUs to improve support to their national
anti-money laundering programs and to develop protocols for
information sharing. The FIUs' support includes expanding
and systematizing the exchange of financial intelligence,
improving expertise and capabilities of the personnel of such
organizations, and fostering improved communications among
FIUs through application of new technologies and sharing of
information for financial crimes investigations.
Electronic Banking - CORRECT ANSWER A form of banking in which funds are transferred through an
exchange of electronic signals among financial institutions
rather than through an exchange of cash, checks or other
negotiable instruments.
Electronic Cash (E-Cash) - CORRECT ANSWER A payment mechanism designed for the Internet, electronic
cash represents a series of monetary value units electronically
stored on the hard drive of a computer or microchip of a
plastic card. It is anonymous like cash, and has immediate
value. E-cash is attractive to money launderers because of its
anonymity and the ease it provides in "transporting" large sums
quickly and easily via the Internet. It is also called "e-money."
Electronic Funds Transfer (EFT) - CORRECT ANSWER The movement of funds between financial institutions
electronically. The two most common electronic funds transfer
systems in the U.S. are FedWire and CHIPS. (SWIFT is
often referred to as the third EFT system, but in reality it is an
international messaging system that carries instructions for
wire transfers between institutions, rather than the wire transfer
system itself.) Other systems that facilitate funds movement,
but are not technically EFT systems, include automated
clearing houses (ACH), which are networks that conduct batch
processing of messages for book transfers between [Show Less]