CAMS · Question #548
A client has retained a lawyer to create a financial holding company. The lawyer resides in Europe. The client provides all requested documentation to the lawyer. However, the lawyer becomes suspiciou
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Question
A client has retained a lawyer to create a financial holding company. The lawyer resides in Europe. The client provides all requested documentation to the lawyer. However, the lawyer becomes suspicious that the customer is engaged in criminal activity and intends to use the financial holding company for money laundering purposes. Which of the following should an anti- money laundering specialist recommend according to the European Union Money Laundering Directives?
Options
- AThere is no need to file a suspicious transaction report, as this activity is covered by attor-ney-
- BFreeze the client's assets so that all records can be turned over to the competent authori-ties.
- CReport the activity as suspicious to the competent authority because the lawyer is covered by
- DConsult with the competent authority to receive advice on how to handle the transaction.
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