Which of the following is a red flag indicating potential money laundering or terrorism financing through dealers of precious metals or high-value items?

The correct answer is C. A customer wants a handwritten receipt for a cash purchase of a high-end, limited-edition luxury. Money launderers use high-value goods (e.g., jewelry, art, and precious metals) to disguise illicit Option C (Correct): Requesting a handwritten receipt for a cash purchase suggests an attempt to avoid record-keeping, a known money laundering technique.

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AA customer wants to purchase gold bars with a combination of cash and cryptocurrency.
BA customer pays an antique dealer with a credit card for a high-value antique item.
CA customer wants a handwritten receipt for a cash purchase of a high-end, limited-edition luxury
DA customer specifically requests to purchase a Kimberly Process-certified cut diamond.

How the community answered

(28 responses)

A
11% (3)
B
4% (1)
C
79% (22)
D
7% (2)

Explanation

Money launderers use high-value goods (e.g., jewelry, art, and precious metals) to disguise illicit Option C (Correct): Requesting a handwritten receipt for a cash purchase suggests an attempt to avoid record-keeping, a known money laundering technique.

Topics

#precious metals dealers#high-value goods#red flags#cash transactions

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