CAMS · Question #849
A trust and company services provider that offers a variety of services to businesses is approached by a client interested in establishing a new company. The client requests assistance with the…
The correct answer is A. Appointing individuals to serve in official capacities of the company. Appointing individuals to serve in official capacities poses a higher money laundering risk because it can be used to obscure the true beneficial ownership and control of the company, making it easier to conceal illicit activities or the identity of those directing the business.
Question
A trust and company services provider that offers a variety of services to businesses is approached by a client interested in establishing a new company. The client requests assistance with the incorporation process, a local business address, annual maintenance services, and the designation of individuals to serve in official capacities for the new company. Which of the following services involves a higher money laundering risk?
Options
- AAppointing individuals to serve in official capacities of the company
- BAnnual maintenance services
- CProvision of a local business address
- DCompany incorporation services
How the community answered
(20 responses)- A80% (16)
- B5% (1)
- C5% (1)
- D10% (2)
Explanation
Appointing individuals to serve in official capacities poses a higher money laundering risk because it can be used to obscure the true beneficial ownership and control of the company, making it easier to conceal illicit activities or the identity of those directing the business.
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