Which of the following are money laundering red flags when reviewing business operations of a money services business (MSB)? (Select Two.)

The correct answer is D. A customer being hesitant to provide beneficiary name or address information when sending E. A customer using multiple accounts under different names to conduct transactions. MSBs are vulnerable to financial crime due to their cash-intensive nature and remittance Option D (Correct): Hesitation to provide beneficiary details suggests anonymity concerns, a common money laundering tactic. Option E (Correct): Using multiple accounts under different…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AA customer exchanging foreign currency from a higher-risk jurisdiction for domestic currency
BCash-intensive businesses, such as convenience stores or restaurants, making large cash
CA customer completing frequent small-dollar international money transfers to their native country.
DA customer being hesitant to provide beneficiary name or address information when sending
EA customer using multiple accounts under different names to conduct transactions.

How the community answered

(32 responses)

A
9% (3)
B
3% (1)
C
16% (5)
D
72% (23)

Explanation

MSBs are vulnerable to financial crime due to their cash-intensive nature and remittance Option D (Correct): Hesitation to provide beneficiary details suggests anonymity concerns, a common money laundering tactic. Option E (Correct): Using multiple accounts under different names is a known structuring technique to evade detection.

Topics

#money services business#red flags#structuring#smurfing

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