ACAMS
CAMS · Question #691
Which operational situation might indicate that money laundering is occurring at or through a deposit-taking financial institution?
The correct answer is A. The institution has observed an increase in customer demand for large-denomination banknotes. Money launderers prefer large-denomination bills because they facilitate bulk cash smuggling and Option A (Correct): Increased demand for large-denomination banknotes is a known money laundering red flag.
Risks and Methods of Money Laundering and Terrorist Financing
Question
Which operational situation might indicate that money laundering is occurring at or through a deposit-taking financial institution?
Options
- AThe institution has observed an increase in customer demand for large-denomination banknotes.
- BThe institution has observed an increase in the adoption of its digital products and services.
- CThe institution has observed a reduced settlement time in the transaction services that support
- DThe institution maintains a sequentially numbered log of the monetary instruments it sells.
How the community answered
(26 responses)- A77% (20)
- B12% (3)
- C8% (2)
- D4% (1)
Explanation
Money launderers prefer large-denomination bills because they facilitate bulk cash smuggling and Option A (Correct): Increased demand for large-denomination banknotes is a known money laundering red flag.
Topics
#deposit-taking institutions#large denomination banknotes#red flags#placement
Community Discussion
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