An employee in a corporation's finance department hears news of an internal investigation into potential fraud within the company, quits their job, and disappears. If they had been observed before…

The correct answer is A. The employee was constantly evasive about the reasons for leaving their previous corporate D. The employee had a lavish lifestyle for their income. Fraud and financial crime are often associated with sudden resignations, attempts to evade scrutiny, and financial behaviors inconsistent with legitimate income. Option A (Correct): Being evasive about past employment suggests potential undisclosed Option D (Correct): Living…

Risks and Methods of Money Laundering and Terrorist Financing

Question

An employee in a corporation's finance department hears news of an internal investigation into potential fraud within the company, quits their job, and disappears. If they had been observed before their resignation, which characteristics of the employee would have been considered red flags? (Select Two.)

Options

AThe employee was constantly evasive about the reasons for leaving their previous corporate
BThe employee was originally from a high-risk jurisdiction.
CThe employee had friends in high-risk industries.
DThe employee had a lavish lifestyle for their income.

How the community answered

(24 responses)

A
79% (19)
B
13% (3)
C
8% (2)

Explanation

Fraud and financial crime are often associated with sudden resignations, attempts to evade scrutiny, and financial behaviors inconsistent with legitimate income. Option A (Correct): Being evasive about past employment suggests potential undisclosed Option D (Correct): Living beyond one's means is a major financial crime red flag, indicating possible fraud or illicit earnings.

Topics

#employee red flags#internal fraud#lifestyle indicators#HR screening

Community Discussion

No community discussion yet for this question.

Full CAMS Practice