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

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…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

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

How the community answered

(54 responses)

A
15% (8)
B
7% (4)
C
78% (42)

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.

Topics

#trade-based money laundering#letters of credit#red flags#third-party involvement

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