nerdexam
ACAMS

CAMS · Question #828

The transaction monitoring system of a bank generated an alert for a car wash client. After making large cash deposits, the client orders international wire transfers. Which additional circumstances…

The correct answer is A. The beneficiary of the wire transfers is a foreign company whose shareholders and director are. The suspicion increases when the beneficiary is a foreign company whose shareholders and director are other companies, as this can indicate the use of layered corporate structures to obscure the ultimate beneficial owner and conceal illicit fund flows.

Conducting and Responding to Investigations

Question

The transaction monitoring system of a bank generated an alert for a car wash client. After making large cash deposits, the client orders international wire transfers. Which additional circumstances would make the case more suspicious?

Options

  • AThe beneficiary of the wire transfers is a foreign company whose shareholders and director are
  • BThe wire transfers are for different amounts but with the same beneficiary
  • CThe beneficiary of the wire transfer is a resident of a grey-list country
  • DThe beneficiary of the wire transfers is a resident of a foreign country bearing the same family

How the community answered

(45 responses)
  • A
    78% (35)
  • B
    16% (7)
  • C
    2% (1)
  • D
    4% (2)

Explanation

The suspicion increases when the beneficiary is a foreign company whose shareholders and director are other companies, as this can indicate the use of layered corporate structures to obscure the ultimate beneficial owner and conceal illicit fund flows.

Topics

#transaction monitoring#cash-intensive business#beneficial ownership opacity#wire transfer typology

Community Discussion

No community discussion yet for this question.

Full CAMS Practice