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ACAMS

CAMS · Question #19

A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer's accounts, you notice that credit card receipts have increased with no . The…

The correct answer is A. Privately-owned ATM. According to the ACAMS study guide, one of the red flags for money laundering in cash-intensive businesses is "the presence of privately-owned ATMs on the premises" (p. 222). This could indicate that the business is using the ATM to deposit or withdraw large amounts of cash…

Risks and Methods of Money Laundering and Terrorist Financing

Question

A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer's accounts, you notice that credit card receipts have increased with no . The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction on a patio dining area. Which red flag should trigger additional investigation?

Options

  • APrivately-owned ATM
  • BLower cash deposits
  • CIncreased credit card receipts
  • DConstruction of the new patio dining area

How the community answered

(35 responses)
  • A
    74% (26)
  • B
    9% (3)
  • C
    14% (5)
  • D
    3% (1)

Explanation

According to the ACAMS study guide, one of the red flags for money laundering in cash-intensive businesses is "the presence of privately-owned ATMs on the premises" (p. 222). This could indicate that the business is using the ATM to deposit or withdraw large amounts of cash from illicit sources, or to facilitate the movement of funds across borders. The other options are not necessarily indicative of money laundering risk, as they could be explained by legitimate factors such as the change in customer preferences, the economic situation, or the expansion of the

Topics

#privately-owned ATM#cash deposit anomalies#red flags#money laundering indicators

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