Common risks and red flags associated with trade finance clients may include: (Choose four.)

The correct answer is A. account activity that is not consistent with the purpose of the account C. transaction structures that appear unnecessarily complex D. trade documents, such as invoices and letters of credit, that are not clearly worded or are in. Trade finance red flags include account activity inconsistent with the account's stated purpose, unnecessarily complex transaction structures, poorly worded or foreign-language trade documents that may obscure details, and invoices with prices significantly above market value…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

Aaccount activity that is not consistent with the purpose of the account
Bbills of lading matching the description of goods, quantities, and values with transshipment details
Ctransaction structures that appear unnecessarily complex
Dtrade documents, such as invoices and letters of credit, that are not clearly worded or are in
Einvoices with prices that are much higher than market price
Ffluctuations in the pricing of standard goods and services

How the community answered

(61 responses)

A
79% (48)
B
3% (2)
E
7% (4)
F
11% (7)

Explanation

Trade finance red flags include account activity inconsistent with the account's stated purpose, unnecessarily complex transaction structures, poorly worded or foreign-language trade documents that may obscure details, and invoices with prices significantly above market value, which can indicate trade-based money laundering or fraud.

Topics

#trade finance#trade-based money laundering#red flags#invoice fraud

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