CAMS · Question #643
In order for a terrorist organization to move funds from Cyprus to England through trade-based money laundering, which technique would be used?
The correct answer is B. An England-based exporter over-invoices a shipment to Cyprus. Trade-based money laundering (TBML) involves manipulating trade transactions to move illicit funds rather than goods. One common technique is over-invoicing, where an exporter intentionally inflates the invoice value of goods. In this scenario, an England-based exporter would…
Question
In order for a terrorist organization to move funds from Cyprus to England through trade-based money laundering, which technique would be used?
Options
- AAn England-based exporter under-invoices a shipment to Cyprus.
- BAn England-based exporter over-invoices a shipment to Cyprus.
- CA Cyprus-based exporter short-ships a shipment to London.
- DA Cyprus-based exporter over-invoices a shipment to London.
How the community answered
(28 responses)- A14% (4)
- B75% (21)
- C4% (1)
- D7% (2)
Explanation
Trade-based money laundering (TBML) involves manipulating trade transactions to move illicit funds rather than goods. One common technique is over-invoicing, where an exporter intentionally inflates the invoice value of goods. In this scenario, an England-based exporter would over-invoice a shipment to Cyprus. By doing so, the exporter creates a surplus amount that can be transferred back to the terrorist organization in England, effectively disguising the movement of illicit funds.
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