CAMS · Question #73
CAMS Question #73: Real Exam Question with Answer & Explanation
The correct answer is A. Compare the wire transaction as it enters and after it leaves the bank B. Check for suspicious phrases usually used to conceal originator or beneficiary identity. Wire stripping is a technique used by money launderers to remove or alter information that identifies the originator or beneficiary of a wire transfer, in order to avoid detection or tracing. To detect wire stripping, a bank employee should compare the wire transaction as it ente
Question
Options
- ACompare the wire transaction as it enters and after it leaves the bank
- BCheck for suspicious phrases usually used to conceal originator or beneficiary identity
- CIdentify large incoming wire transactions received on behalf of a foreign client with no explicit
- DIdentify wire transaction activity to or from a financial institution located in a higher risk jurisdiction
Explanation
Wire stripping is a technique used by money launderers to remove or alter information that identifies the originator or beneficiary of a wire transfer, in order to avoid detection or tracing. To detect wire stripping, a bank employee should compare the wire transaction as it enters and after it leaves the bank, and look for any discrepancies or missing information in the fields related to the originator or beneficiary. The employee should also check for suspicious phrases usually used to conceal originator or beneficiary identity, such as "for further credit", "in favor of", "on behalf of", or "as instructed".
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