CAMS · Question #578
On-line financial technologies are susceptible to money laundering risk because
The correct answer is C. The identity of the people who conduct transactions may be unknown. According to the Anti-Money Laundering Specialist (the 6th edition) resources, one of the challenges of online financial technologies is the difficulty of verifying the identity and legitimacy of the customers and counterparties. This creates opportunities for money launderers…
Question
On-line financial technologies are susceptible to money laundering risk because
Options
- AViruses significantly damage communications and commerce.
- BThe risk of identity theft is greatly increased.
- CThe identity of the people who conduct transactions may be unknown.
- DBaring staff are familiar with how this technology can be abused.
How the community answered
(59 responses)- A10% (6)
- B2% (1)
- C83% (49)
- D5% (3)
Explanation
According to the Anti-Money Laundering Specialist (the 6th edition) resources, one of the challenges of online financial technologies is the difficulty of verifying the identity and legitimacy of the customers and counterparties. This creates opportunities for money launderers and other criminals to exploit the anonymity and speed of online transactions to move and conceal illicit funds. The other options are not directly related to the money laundering risk posed by online financial technologies.
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