CAMS · Question #417
CAMS Question #417: Real Exam Question with Answer & Explanation
The correct answer is B. A corporate account is opened on behalf of several beneficial owners D. The customer's stated investment goal is not reflective of account activity. A corporate account opened on behalf of several beneficial owners is a red flag because it may indicate an attempt to conceal the identity or source of funds of the ultimate beneficiaries. The customer's stated investment goal of long-term investment is not reflective of the acco
Question
Options
- AThe new account deposit is $25.5 million
- BA corporate account is opened on behalf of several beneficial owners
- CThe compliance officer receives the query regarding the movement of funds
- DThe customer's stated investment goal is not reflective of account activity
Explanation
A corporate account opened on behalf of several beneficial owners is a red flag because it may indicate an attempt to conceal the identity or source of funds of the ultimate beneficiaries. The customer's stated investment goal of long-term investment is not reflective of the account activity, which involves frequent and large transfers, currency exchanges, and account depletion within a short period of time. This discrepancy may suggest that the customer is using the account for money laundering or other illicit purposes.
Community Discussion
No community discussion yet for this question.