CAMS · Question #42
CAMS Question #42: Real Exam Question with Answer & Explanation
The correct answer is A. The LLC's ownership is not disclosed to the bank C. The repayment in the amount of $9,000 indicates potential structuring. According to the ACAMS study guide, one of the red flags for money laundering in loan transactions is "the use of shell companies or other legal entities whose ownership is not transparent or whose beneficial owners are unknown" (p. 223). Money launderers may use such entities to
Question
Options
- AThe LLC's ownership is not disclosed to the bank
- BThe collateral, a property in Florida, is not located in Arizona
- CThe repayment in the amount of $9,000 indicates potential structuring
- DThe attorney associated with the account is outside the bank's lending area
Explanation
According to the ACAMS study guide, one of the red flags for money laundering in loan transactions is "the use of shell companies or other legal entities whose ownership is not transparent or whose beneficial owners are unknown" (p. 223). Money launderers may use such entities to hide their identity and the source of their funds, or to create complex layers of transactions to obscure the trail of money. The other options are not necessarily indicative of money laundering risk, as they could be explained by legitimate factors such as the location of the property, the repayment schedule, or the choice of attorney.
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