Which scenario should be escalated as potentially suspicious activity?

The correct answer is B. A domestic business account receives a wire transfer from an international business with no. A domestic business account receiving a wire transfer from an international business with no history of such activity or business needs should be escalated as potentially suspicious activity. This is because this scenario may indicate an attempt to launder money, evade taxes, or

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AA retail chain deposits cash into several operating accounts and consolidates the funds into one
BA domestic business account receives a wire transfer from an international business with no
CA convenience store makes daily deposits or withdrawals primarily in cash.
DA corporate account deposits large checks and wire transfers on a frequent basis from existing

How the community answered

(45 responses)

A
9% (4)
B
73% (33)
C
13% (6)
D
4% (2)

Explanation

A domestic business account receiving a wire transfer from an international business with no history of such activity or business needs should be escalated as potentially suspicious activity. This is because this scenario may indicate an attempt to launder money, evade taxes, or finance terrorism through cross-border transfers that have no apparent economic or lawful purpose. The lack of prior relationship or business justification for the wire transfer may also suggest that the transaction is not consistent with the customer's profile or expected activity. Therefore, this scenario should be investigated further and reported if necessary.

Topics

#suspicious activity#wire transfers#red flags#international transactions

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