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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

A customer has borrowed the cash surrender value of their life insurance policies. Which requires a further investigation and filing of the suspicious activity report?

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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