Which of the following customer activities poses the highest risk of money laundering?

The correct answer is C. Making multiple cash deposits slightly below a required reporting limit.. The customer activity that poses the highest risk of money laundering is making multiple cash deposits slightly below a required reporting limit. This could indicate a practice known as structuring or smurfing, which is a method of breaking down large amounts of cash into smaller

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

ATransferring funds to pay for flight training lessons.
BPaying a supplier of precious metals at regular quarterly intervals.
CMaking multiple cash deposits slightly below a required reporting limit.
DConducting business in a country that represents a high risk of money laundering.

How the community answered

(69 responses)

A
9% (6)
B
16% (11)
C
72% (50)
D
3% (2)

Explanation

The customer activity that poses the highest risk of money laundering is making multiple cash deposits slightly below a required reporting limit. This could indicate a practice known as structuring or smurfing, which is a method of breaking down large amounts of cash into smaller transactions to avoid detection or reporting by financial institutions. Structuring is a common technique used by money launderers to conceal the source, ownership, or destination of illicit

Topics

#structuring#cash deposits#reporting threshold#ML risk indicators

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