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CAMS · Question #714

CAMS Question #714: Real Exam Question with Answer & Explanation

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 launderi

Question

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

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.

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

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