CAMS · Question #671
An agent of a wealthy individual from a high-risk country (as per the EU's high-risk jurisdictions list) approaches a notary in an EU country to dispose of assets recently acquired at an auction…
The correct answer is A. The agent acted on behalf of an individual residing in a high-risk jurisdiction. D. The agent requested a disposal of assets at a lower price than recently acquired. The real estate sector is a known avenue for money laundering, and this scenario presents multiple red flags. High-risk jurisdictions are associated with corruption and financial crime, making transactions involving their citizens higher risk. Selling assets below market value…
Question
An agent of a wealthy individual from a high-risk country (as per the EU's high-risk jurisdictions list) approaches a notary in an EU country to dispose of assets recently acquired at an auction through an offshore company. The agent holds power of attorney from a law firm in another EU country. The transfer price is significantly lower than the auction price, but the agent refuses to explain the discrepancy. Which red flags should the notary consider? (Select Two.)
Options
- AThe agent acted on behalf of an individual residing in a high-risk jurisdiction.
- BThe power of attorney was issued by a law firm in a different EU country from where the
- CThe assets acquired through an auction were put in the name of an offshore company.
- DThe agent requested a disposal of assets at a lower price than recently acquired.
How the community answered
(25 responses)- A80% (20)
- B12% (3)
- C8% (2)
Explanation
The real estate sector is a known avenue for money laundering, and this scenario presents multiple red flags. High-risk jurisdictions are associated with corruption and financial crime, making transactions involving their citizens higher risk. Selling assets below market value is a common tactic to disguise illicit funds or transfer value
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