A customer's registered business activity is a domestic carpet cleaning company. Besides domestic receipts, there are incoming weekly transactions from an international reputable auction house…

Question

Options

• AThe customer is paying 90% of the incoming proceeds to non-related individuals in cash.
• BThe customer is a domestic carpet cleaning company.
• CThe customer's international incomings are from an international reputable antique auction house.
• DThe customer's initial international receipt has increased from 15,000 USD to an average of

• A
  75% (39)
• B
  15% (8)
• C
  4% (2)
• D
  6% (3)

Explanation

The customer's business activity as a domestic carpet cleaning company is not inherently suspicious, as it aligns with their registered business. However, the significant weekly transactions from an international reputable antique auction house raise red flags. The sudden increase in the customer's initial international receipt from $15,000 USD to an average of $30,000 USD per transaction per week is also noteworthy. Such a substantial change warrants further The fact that 90% of the incoming deposits are matched by cash outgoings to non-related individuals could indicate layering or structuring activities associated with money laundering. Overall, the combination of large international transactions, increased receipts, and cash outflows to unrelated parties from an antique auction house is the most concerning aspect.

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