CAMS Question #885: Real Exam Question with Answer & Explanation

The correct answer is C. Instructions or involvement from third parties D. Amended letters of credit without reasonable justification E. Non-standard settlement arrangements. Trade-based money laundering red flags include third-party involvement in transactions, amended letters of credit without clear justification, and non-standard settlement arrangements, all of which can indicate attempts to disguise illicit fund movements or the true nature of the

Question

Which red flags apply to trade-based money laundering (TBML) schemes? (Choose three.)

Options

AUse of wire transfers
BLoitering
CInstructions or involvement from third parties
DAmended letters of credit without reasonable justification
ENon-standard settlement arrangements

Explanation

Trade-based money laundering red flags include third-party involvement in transactions, amended letters of credit without clear justification, and non-standard settlement arrangements, all of which can indicate attempts to disguise illicit fund movements or the true nature of the trade.

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