What is a method of placement that can be used by a money launderer in a deposit taking institution?

The correct answer is A. Depositing cash into the money launderer's account. According to the ACAMS CAMS Study Guide, one of the most common methods of placement is to deposit cash into a bank account, either directly or through intermediaries. This allows the money launderer to introduce the illicit funds into the legitimate financial system, and to…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

ADepositing cash into the money launderer's account
BSending a large number of funds transfers between accounts
CWithdrawing large amounts of cash from the money launderer's account
DDepositing cashier's checks and money orders into the money launderer's account

How the community answered

(26 responses)

A
77% (20)
B
4% (1)
C
4% (1)
D
15% (4)

Explanation

According to the ACAMS CAMS Study Guide, one of the most common methods of placement is to deposit cash into a bank account, either directly or through intermediaries. This allows the money launderer to introduce the illicit funds into the legitimate financial system, and to create a paper trail that can be used to justify the source of the funds. However, this method also exposes the money launderer to the risk of detection by the bank's anti-money laundering (AML) policies and procedures, such as customer identification, transaction monitoring, and reporting of suspicious activities.

Topics

#placement stage#cash deposits#money laundering stages#deposit-taking institutions

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