CAMS · Question #615
CAMS Question #615: Real Exam Question with Answer & Explanation
The correct answer is C. The customer directs the payment of the money borrowed to an unrelated third party.. The customer directing the payment of the money borrowed to an unrelated third party is a red flag for potential money laundering, as it could indicate layering or integration of illicit funds. The other options are not necessarily indicative of money laundering, although they co
Question
Options
- AThe customer uses multiple currency equivalents from different sources to pay the monthly life
- BThe customer has paid the monthly life insurance policy premiums with cash.
- CThe customer directs the payment of the money borrowed to an unrelated third party.
- DThe customer cancels the insurance contract without concern for the penalties after the money is
Explanation
The customer directing the payment of the money borrowed to an unrelated third party is a red flag for potential money laundering, as it could indicate layering or integration of illicit funds. The other options are not necessarily indicative of money laundering, although they could warrant further monitoring or due diligence depending on the customer profile and risk assessment.
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