A bank's anti-money laundering section receives an anonymous tip that a customer might be engaging in possible money laundering. Which two facts should be considered during the course of an…

Question

Options

• AThe customer has had a long-standing account at the bank
• BThe customer in on the exempt list for currency transaction reporting requirements
• CThe customer is issuing a number of wires to several relatively high-risk jurisdictions
• DThe customer's account has had a large volume of activity, but the month-end balance is usually

• A
  12% (8)
• B
  5% (3)
• C
  83% (54)

Explanation

The customer's wire transfers to high-risk jurisdictions and the large volume of activity with low month-end balance are two facts that should be considered during the course of an investigation into possible money laundering. These facts may indicate that the customer is trying to move funds from or to countries that have weak anti-money laundering (AML) controls, or that are known to be a source or destination of illicit funds. They may also suggest that the customer is using a technique called "smurfing" or "structuring", which involves breaking down large amounts of cash into smaller transactions to avoid detection or reporting. The other two facts are not necessarily indicative of money laundering, as the customer may have a legitimate reason to have a long-standing account at the bank or to be on the exempt list for currency transaction reporting requirements.

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