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ACAMS

CAMS · Question #842

Which of the following accurately describes the economic, reputational and social consequences of money laundering (ML) and the risks and consequences of violating AFC regulations? (Choose two.)

The correct answer is A. ML undermines the integrity and stability of financial systems and makes them vulnerable to C. When laundered funds flow into legitimate economies, they can be used for illegal purposes, such. Money laundering corrodes financial-system integrity, eroding investor confidence and impeding sustainable economic growth. Illicit funds entering legitimate economies can finance terrorism and organized crime, skew resource allocation, and stifle development.

Risks and Methods of Money Laundering and Terrorist Financing

Question

Which of the following accurately describes the economic, reputational and social consequences of money laundering (ML) and the risks and consequences of violating AFC regulations? (Choose two.)

Options

  • AML undermines the integrity and stability of financial systems and makes them vulnerable to
  • BWhen a financial institution (FI) is found to be promoting ML or violating AFC regulations, this can
  • CWhen laundered funds flow into legitimate economies, they can be used for illegal purposes, such
  • DJurisdictions perceived as having insufficient ML measures might be identified as uncooperative

How the community answered

(27 responses)
  • A
    74% (20)
  • B
    7% (2)
  • D
    19% (5)

Explanation

Money laundering corrodes financial-system integrity, eroding investor confidence and impeding sustainable economic growth. Illicit funds entering legitimate economies can finance terrorism and organized crime, skew resource allocation, and stifle development.

Topics

#money laundering consequences#financial system integrity#reputational risk#AFC violations

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