A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking. Which red flag should prompt additional…

The correct answer is D. Cash deposits that occur in cities where the customer does not reside or conduct business. A customer's account appears to function as a funnel account whereby cash deposits occur in cities/states where the customer does not reside or conduct business. Frequently, in the case of funnel accounts, the funds are quickly withdrawn (same day) after the deposits are made.

Risks and Methods of Money Laundering and Terrorist Financing

Question

A bank compliance officer has implemented enhanced monitoring rules that have identified some unusual activity that may be indicative of human trafficking. Which red flag should prompt additional transactional review?

Options

AWire transfer activity from countries with significant migrant populations
BCash deposits that occur in cities where the customer resides and conducts business
CCash deposits that occur in cities where the customer does not reside or conduct business
DCash deposits that occur in cities where the customer does not reside or conduct business

How the community answered

(42 responses)

A
5% (2)
B
14% (6)
C
10% (4)
D
71% (30)

Explanation

A customer's account appears to function as a funnel account whereby cash deposits occur in cities/states where the customer does not reside or conduct business. Frequently, in the case of funnel accounts, the funds are quickly withdrawn (same day) after the deposits are made.

Topics

#human trafficking#transaction monitoring#geographic red flags#cash deposits

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