A bank is completing a periodic KYC profile review for a small digital marketing company based in New York City. Which of the following would be a red flag?

The correct answer is D. The account activity includes deposits made in multiple branches around New York City into the. Money laundering risks arise when transaction patterns are inconsistent with a business's expected activity. Option D (Correct): Multiple cash deposits in different branches is a known structuring (smurfing) technique, used to evade cash transaction reporting thresholds.

Conducting and Responding to Investigations

Question

Options

AThe account activity includes deposit activity into both savings and checking accounts.
BThe account activity includes incoming funds transfers at irregular intervals from small businesses
CThe account activity includes frequent purchases of tickets to industry conferences and other
DThe account activity includes deposits made in multiple branches around New York City into the

How the community answered

(27 responses)

A
7% (2)
B
19% (5)
C
4% (1)
D
70% (19)

Explanation

Money laundering risks arise when transaction patterns are inconsistent with a business's expected activity. Option D (Correct): Multiple cash deposits in different branches is a known structuring (smurfing) technique, used to evade cash transaction reporting thresholds.

Topics

#KYC periodic review#structuring red flags#cash deposits#suspicious activity indicators

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