One of the red flags of microstructuring is:

Question

Options

• Adepositing sequentially numbered checks.
• Bcheck deposits followed by ATM withdrawals using debt card in retail store.
• Csingle activity in an account immediately following the opening of the account.
• Dfrequent visits to make cash deposits of nominal amounts.

• A
  3% (2)
• B
  10% (6)
• C
  5% (3)
• D
  82% (49)

Explanation

Microstructuring is a method of money laundering that involves breaking down large transactions into smaller amounts that are below the reporting threshold or the level of scrutiny of financial institutions. One of the red flags of microstructuring is frequent visits to make cash deposits of nominal amounts, as this may indicate an attempt to avoid detection and conceal the source or destination of illicit funds. Other red flags of microstructuring include checking accounts receiving cash deposits in amounts under $1,000 as infrequently as several times a month, followed by ATM withdrawals in foreign countries, or deposits that are inconsistent with the customer's profile or business activity.

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