CAMS · Question #512
A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?
The correct answer is B. The provision of cash services. Retail banks typically have a high inherent risk of money laundering due to their provision of cash services. This is because cash is a preferred medium of exchange for criminals and terrorists, and retail banks provide a convenient way for them to move large sums of money…
Question
A retail bank prepares a yearly AML risk assessment. Which inherent risk factor is likely the most relevant?
Options
- AThe provision of remote check deposit services
- BThe provision of cash services
- CThe provision of payable through accounts
- DThe provision of brokerage services
How the community answered
(45 responses)- A9% (4)
- B84% (38)
- C4% (2)
- D2% (1)
Explanation
Retail banks typically have a high inherent risk of money laundering due to their provision of cash services. This is because cash is a preferred medium of exchange for criminals and terrorists, and retail banks provide a convenient way for them to move large sums of money without detection. Retail banks are also vulnerable to money laundering through the use of false identities and other deceptive practices.
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