Which of the following activities are considered 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 high-risk for financial crime, requiring strict AML controls. Option D (Correct): Hesitancy to provide beneficiary information is a strong indicator of illicit financial activity. Option E (Correct): Using multiple accounts under different names is a known money…

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
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
13% (4)
B
9% (3)
C
3% (1)
D
75% (24)

Explanation

MSBs are high-risk for financial crime, requiring strict AML controls. Option D (Correct): Hesitancy to provide beneficiary information is a strong indicator of illicit financial activity. Option E (Correct): Using multiple accounts under different names is a known money laundering

Topics

#money services business#red flags#structuring#beneficiary information

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