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CAMS · Question #718

Which of the following indicates potential money laundering activity by a lawyer?

The correct answer is A. A lawyer's trust account regularly receives wire transfers from unknown remitters from a higher-. Lawyers and legal professionals are frequently used in money laundering schemes, particularly through trust accounts that offer anonymity and client privilege protections. Option A (Correct): Repeated wire transfers from unknown sources followed by immediate outward transfers…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Which of the following indicates potential money laundering activity by a lawyer?

Options

  • AA lawyer's trust account regularly receives wire transfers from unknown remitters from a higher-
  • BA lawyer located in a higher-risk country deposits their firm's bank draft issued from their trust
  • CA lawyer's trust account receives a large-value wire transfer from a regulated insurance company
  • DA lawyer's trust account receives a large wire transfer deposit from a client that wanted to

How the community answered

(68 responses)
  • A
    79% (54)
  • B
    12% (8)
  • C
    6% (4)
  • D
    3% (2)

Explanation

Lawyers and legal professionals are frequently used in money laundering schemes, particularly through trust accounts that offer anonymity and client privilege protections. Option A (Correct): Repeated wire transfers from unknown sources followed by immediate outward transfers suggest that the lawyer's trust account is being used as a pass-through account for laundering funds.

Topics

#DNFBP#lawyer trust account#red flags#wire transfers

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