Which two aspects of the security broker dealer industry increase its exposure to money laundering? Choose 2 answers

Wire transfers across multiple jurisdictions are a general financial risk factor, not a structural characteristic that uniquely or specifically elevates broker-dealer exposure to money laundering.

Converting holdings to cash with a significant loss of principal is a deterrent rather than a vulnerability, as money launderers typically avoid transactions that result in large financial losses to their illicit proceeds.

Disposing of cash through securities purchases is a classic money laundering technique in the broker-dealer industry, allowing illicit funds to be converted into seemingly legitimate investment assets that can later be liquidated as clean proceeds.

The fast-paced, high-volume nature of electronic securities transactions makes it difficult to identify and flag suspicious activity in real time, creating a significant vulnerability to the placement and layering stages of money laundering.