Which of the following activities is most likely associated with a lawyer participating in a money laundering scheme?

Question

Options

• AFrequently travels to countries considered tax havens.
• BEngages clients with high-net worth in foreign countries.
• CRepresents persons accused of crimes against financial institutions.
• DCreates corporate entities to disguise true beneficial ownership of clients.

• A
  4% (1)
• B
  15% (4)
• C
  7% (2)
• D
  74% (20)

Explanation

One of the common methods used by money launderers to hide the origin and destination of illicit funds is to create complex corporate structures that obscure the identity of the real owners or controllers of the assets. Lawyers can facilitate this process by providing legal services such as setting up shell companies, trusts, foundations, or other entities in jurisdictions with weak AML regulations or high secrecy. By doing so, lawyers can help their clients evade taxes, avoid sanctions, conceal criminal activities, or launder money. This is why lawyers are considered high- risk professionals for AML purposes and are subject to due diligence and reporting obligations.

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