A precious metals dealer opens a new account with a bank. Which requires a referral to AML Investigations for further review?

The correct answer is B. Payments received on the account reference unknown companies in the instructions.. payments received on the account that reference unknown companies in the instructions indicate a possible attempt to obscure the source or purpose of the funds. This could be a sign of money laundering, tax evasion, fraud, or other illicit activities. Such payments should be refe

Conducting and Responding to Investigations

Question

Options

AInternational outgoing wires to diamond dealers that are part of the diamond pipeline.
BPayments received on the account reference unknown companies in the instructions.
CInternational incoming payments from foreign companies in which the precious metals dealer has
DMultiple daily point of sale transactions from third parties that appear to be individuals.

How the community answered

(29 responses)

A
7% (2)
B
76% (22)
C
14% (4)
D
3% (1)

Explanation

payments received on the account that reference unknown companies in the instructions indicate a possible attempt to obscure the source or purpose of the funds. This could be a sign of money laundering, tax evasion, fraud, or other illicit activities. Such payments should be referred to AML Investigations for further review and verification of the identity and legitimacy of the companies

Topics

#precious metals dealers#AML red flags#unknown counterparties#investigation referral criteria

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