CAMS · Question #810
Which of the following are key financial crime risks associated with real estate companies? (Choose four.)
The correct answer is A. Buying property allows for the movement of large amounts of funds in a single transaction B. Criminal networks could purchase real estate for use as supply houses or locations to grow, D. Beneficial ownership information might be opaque, and criminals may abuse arrangements like E. Real estate transactions often involve financial institutions and other professional gatekeepers. Real estate companies face key financial crime risks due to the ability to move large sums in a single transaction, the use of property by criminal networks for illicit operations, the opacity of beneficial ownership structures, and the involvement of professional gatekeepers…
Question
Which of the following are key financial crime risks associated with real estate companies? (Choose four.)
Options
- ABuying property allows for the movement of large amounts of funds in a single transaction
- BCriminal networks could purchase real estate for use as supply houses or locations to grow,
- CMarkets can be volatile, and buyers may not achieve a strong return on their investment
- DBeneficial ownership information might be opaque, and criminals may abuse arrangements like
- EReal estate transactions often involve financial institutions and other professional gatekeepers
- FThe high value of properties may require multiple types of financing, which can make it more
How the community answered
(28 responses)- A82% (23)
- C11% (3)
- F7% (2)
Explanation
Real estate companies face key financial crime risks due to the ability to move large sums in a single transaction, the use of property by criminal networks for illicit operations, the opacity of beneficial ownership structures, and the involvement of professional gatekeepers - such as lawyers and financial institutions - who may unknowingly facilitate money laundering.
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