CAMS Question #512: Real Exam Question with Answer & Explanation

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 withou

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

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.

Community Discussion

No community discussion yet for this question.

Full CAMS Practice