CAMS · Question #42
A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida. The loan will be in the name of a limited company (LLC) whose owners
Sign in or unlock CAMS to reveal the answer and full explanation for question #42. The question stem and answer options stay visible for context.
Question
A bank located in Arizona is considering a loan application for a new client. The collateral for the loan is a property in Florida. The loan will be in the name of a limited company (LLC) whose ownership is not disclosed to the bank. The LLC was established by a New York-based attorney. The loan will be repaid by the LLC in monthly wire transfers of $9,000 which is more than the required monthly payment. Which aspect indicates potential for money laundering?
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
Unlock CAMS to see the answer
You've previewed enough free CAMS questions. Unlock CAMS for full answers, explanations, the timed quiz mode, progress tracking, and the master PDF. Question stem and options stay visible so you can still see what's on the exam.