Which factors specific to the securities industry increase the exposure to money laundering risk? (Select Two.)

The correct answer is B. The practice of brokerage firms maintaining securities as nominees E. The speed of the transactions. The practice of brokerage firms maintaining securities as nominees and the speed of the transactions are two factors specific to the securities industry that increase the exposure to money laundering risk. Nominee accounts can be used to conceal beneficial ownership and obscure…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AThe increase of sector-specific guidance
BThe practice of brokerage firms maintaining securities as nominees
CThe complexity of the securities business
DThe link to sanctioned countries
EThe speed of the transactions

How the community answered

(40 responses)

A
8% (3)
B
70% (28)
C
18% (7)
D
5% (2)

Explanation

The practice of brokerage firms maintaining securities as nominees and the speed of the transactions are two factors specific to the securities industry that increase the exposure to money laundering risk. Nominee accounts can be used to conceal beneficial ownership and obscure transaction trails. The speed of transactions can make it difficult to detect and prevent suspicious activity in real time.

Topics

#securities industry#nominee accounts#transaction speed#ML risk factors

Community Discussion

No community discussion yet for this question.

Full CAMS Practice