An AML analyst at a bank is investigating cases triggered by transaction monitoring alerts. Which circumstances might cause the analyst to suspect a case involves terrorist financing? (Select Two.)

The correct answer is A. Transactions involving non-profit organizations with no internet presence. C. Small-dollar payments sent to higher-risk jurisdictions with no prior history. Terrorist financing (TF) differs from traditional money laundering, as funds can originate from legitimate sources (e.g., donations, charities) and often involve low-value transactions. Option A (Correct): Non-profits with no online presence can be shell organizations used to…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

ATransactions involving non-profit organizations with no internet presence.
BSmall-dollar payments sent to crowdfunding initiatives with detailed descriptions of the project
CSmall-dollar payments sent to higher-risk jurisdictions with no prior history.
DTransactions involving domestic non-profit organizations providing charitable aid to refugees from
ETransactions involving structured currency deposits below the reporting threshold to avoid paying

How the community answered

(32 responses)

A
84% (27)
B
3% (1)
D
6% (2)
E
6% (2)

Explanation

Terrorist financing (TF) differs from traditional money laundering, as funds can originate from legitimate sources (e.g., donations, charities) and often involve low-value transactions. Option A (Correct): Non-profits with no online presence can be shell organizations used to finance terrorism. Option C (Correct): Small-dollar payments to high-risk jurisdictions (e.g., FATF-listed countries) may indicate terrorist funding activity.

Topics

#terrorist financing indicators#non-profit organizations#high-risk jurisdictions#transaction monitoring

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