Which of the following are common indicators of possible money laundering within the securities industry? (Choose two.)

The correct answer is A. Using brokerage accounts like deposit accounts D. Engaging in transactions involving nominees or third parties. Using brokerage accounts like deposit accounts (e.g., frequent cash deposits or withdrawals) and conducting transactions through nominees or third parties are common red flags in the securities industry. These behaviors can obscure the origin or ownership of funds and are often…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AUsing brokerage accounts like deposit accounts
BReceiving securities into an existing brokerage account following the death of a spouse
CAllowing fixed income securities to mature
DEngaging in transactions involving nominees or third parties

How the community answered

(30 responses)

A
80% (24)
B
13% (4)
C
7% (2)

Explanation

Using brokerage accounts like deposit accounts (e.g., frequent cash deposits or withdrawals) and conducting transactions through nominees or third parties are common red flags in the securities industry. These behaviors can obscure the origin or ownership of funds and are often used to facilitate money laundering.

Topics

#securities industry#money laundering indicators#nominee accounts#brokerage accounts

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