Which of the following presents the highest money laundering risk from a money services business (MSB)?

The correct answer is B. Some MSBs process large, individual cash transactions on behalf of customers. Large individual cash transactions pose the highest money laundering risk for money services businesses. Cash is difficult to trace and, when handled in significant amounts, can be used to introduce illicit funds into the financial system with minimal transparency.

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

ASome MSBs provide bureau de change services to retail customers after they complete a due
BSome MSBs process large, individual cash transactions on behalf of customers.
CSome MSBs allow regular and frequent transactions to the same family members based in
DSome MSBs process small remittance payments on behalf of workers based abroad sending

How the community answered

(22 responses)

A
5% (1)
B
73% (16)
C
5% (1)
D
18% (4)

Explanation

Large individual cash transactions pose the highest money laundering risk for money services businesses. Cash is difficult to trace and, when handled in significant amounts, can be used to introduce illicit funds into the financial system with minimal transparency.

Topics

#money services business#cash transactions#MSB ML risk#high-risk activities

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