CAMS · Question #877
CAMS Question #877: Real Exam Question with Answer & Explanation
The correct answer is B. KYC challenges arise because e-commerce platforms face global customers making customer D. Criminals can make use of identify fraud to fulfill KYC processes for layering purposes. E-commerce platforms face KYC challenges due to a global and diverse customer base, making due diligence complex, while criminals may exploit identity fraud to pass KYC checks and facilitate layering in money laundering schemes. These factors increase the financial crime risks fo
Question
Options
- AThese businesses are all cash intensive, increasing the risk of financial crime
- BKYC challenges arise because e-commerce platforms face global customers making customer
- CThese businesses are highly regulated and therefore have no reason to be non-compliant as this
- DCriminals can make use of identify fraud to fulfill KYC processes for layering purposes
- EThe settlement systems of these businesses are not sophisticated enough to cope with the high
Explanation
E-commerce platforms face KYC challenges due to a global and diverse customer base, making due diligence complex, while criminals may exploit identity fraud to pass KYC checks and facilitate layering in money laundering schemes. These factors increase the financial crime risks for such businesses.
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