Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What was the effect of the 1988 Vienna Convention regarding money laundering?

1. It made money laundering legal in certain jurisdictions

2. It allowed for money laundering to become an internationally extraditable offense

3. It limited the cooperation between countries on money laundering issues

4. It established a new form of international currency

The correct answer is: It allowed for money laundering to become an internationally extraditable offense

The 1988 Vienna Convention was significant in shaping international responses to drug-related crime and, by extension, money laundering. One of the key outcomes of the Convention was the recognition of money laundering as a serious crime that could transcend national borders. By declaring money laundering an internationally extraditable offense, the Convention facilitated cooperation between countries in prosecuting individuals involved in laundering illicit proceeds. This international acknowledgment meant that countries were encouraged to legislate against money laundering and were more likely to enforce extradition agreements, making it easier to pursue offenders who moved proceeds of crime across jurisdictions. As a result, the Convention played a crucial role in promoting collaboration and setting a precedent for future agreements and protocols focused on combating money laundering globally. The other choices do not accurately reflect the essence of the Vienna Convention. It did not legalize money laundering in any jurisdiction, nor did it limit cooperation; rather, it aimed to enhance international collaboration. Additionally, it did not introduce a new form of international currency, as its primary focus was on drug trafficking and related financial crimes.