CAMS · Question #237
A bank has opened a new account for a well-known attorney to manage client funds. During the first six months, bank staff observe the account receives multiple deposits via wire transfer. They also…
The correct answer is B. Making payment to various people. According to the ACAMS CAMS Study Guide, one of the methods that attorneys may use to facilitate money laundering is to make payments to third parties on behalf of their clients, using funds from their client accounts. This may obscure the source and destination of the funds…
Question
A bank has opened a new account for a well-known attorney to manage client funds. During the first six months, bank staff observe the account receives multiple deposits via wire transfer. They also observe that the attorney withdraws cash, makes payments to various people, and transfers funds to the law firm's account online. What is considered a red flag for potential money laundering in this situation?
Options
- AWithdrawing cash
- BMaking payment to various people
- CReceiving multiple deposits via wire transfer
- DTransferring funds to his law firm's account online
How the community answered
(21 responses)- A5% (1)
- B81% (17)
- C5% (1)
- D10% (2)
Explanation
According to the ACAMS CAMS Study Guide, one of the methods that attorneys may use to facilitate money laundering is to make payments to third parties on behalf of their clients, using funds from their client accounts. This may obscure the source and destination of the funds, and create a false appearance of legitimate transactions. Therefore, making payment to various people is a red flag for potential money laundering in this situation.
Topics
Community Discussion
No community discussion yet for this question.