A compliance analyst is reviewing recent activity between a publicly traded company and a company in a high risk jurisdiction. Which detail suggests that escalation is warranted?

The correct answer is D. Payments to the beneficiary are for large dollar amounts.. According to the ACAMS CAMS Certification Study Guide (6th edition), one of the red flags for money laundering is the transfer of large sums of money to or from high-risk jurisdictions, especially if the transactions are inconsistent with the customer's profile or business activi

Conducting and Responding to Investigations

Question

Options

AThe activity is a reputational risk to the financial institution.
BIt is the first time the originator wires the beneficiary.
CBeneficiary is active in a related industry.
DPayments to the beneficiary are for large dollar amounts.

How the community answered

(40 responses)

A
13% (5)
B
5% (2)
C
8% (3)
D
75% (30)

Explanation

According to the ACAMS CAMS Certification Study Guide (6th edition), one of the red flags for money laundering is the transfer of large sums of money to or from high-risk jurisdictions, especially if the transactions are inconsistent with the customer's profile or business activity. Large payments to a beneficiary in a high-risk jurisdiction may indicate that the originator is involved in illicit activities such as tax evasion, fraud, corruption, or terrorism financing. Therefore, such payments should be escalated for further investigation and reporting.

Topics

#transaction monitoring#high-risk jurisdictions#escalation triggers#wire transfers

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