What indicates potential money laundering activity by a lawyer?

Question

Options

• AA lawyer's trust account regularly receives wire transfers from unknown remitters in a high risk
• BA lawyer's trust account receives a large value wire transfer from a publicly listed life insurance
• CA lawyer's account in a low risk country receives a bank draft from another lawyer firm in a high
• DA lawyer's account in a high risk country receives a cash deposit of an amount that is

• A
  81% (17)
• B
  10% (2)
• C
  5% (1)
• D
  5% (1)

Explanation

Option A indicates potential money laundering activity by a lawyer, as it involves the use of a trust account to receive and transfer funds from unknown sources in high risk jurisdictions, without any apparent legitimate purpose or explanation. This could be a sign of layering, where the money launderer attempts to conceal the origin and ownership of the illicit funds by moving them through multiple accounts and jurisdictions. Option B does not necessarily indicate money laundering, as the source of the funds is a reputable entity and the transfer could be explained by a legitimate transaction or service. Option C does not necessarily indicate money laundering, as the bank draft could be a payment for a legal service or a settlement between parties. Option D does not necessarily indicate money laundering, as the cash deposit could be a fee for a legal service or a donation, and the amount could be below the reporting threshold to avoid unnecessary paperwork or scrutiny.

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