Which activities would be considered money laundering red flags when reviewing the business operations of a money services business (MSB)? (Select Two.)

Question

Options

• AA customer being hesitant to provide beneficiary name or address information when sending
• BCash-intensive businesses, such as convenience stores or restaurants, making large cash
• CA customer exchanging foreign currency from a higher-risk jurisdiction for domestic currency
• DA customer using multiple accounts under different names to conduct transactions
• EA customer completing frequent small-dollar international money transfers to their native country

• A
  85% (28)
• B
  3% (1)
• C
  9% (3)
• E
  3% (1)

Explanation

When reviewing business operations of a Money Services Business (MSB), it is critical to identify behaviors that indicate potential money laundering activity. TheCAMS Study Guide ?6th Editionoutlines severalred flagscommonly associated with MSBs. Option A is correct: A customer beinghesitant to provide beneficiary information, such as the name or address, is a red flag. It may indicate attempts to hide the true purpose or recipient of the funds and could suggeststructuring or layering activity. Option D is correct: A customer usingmultiple accounts under different namesto conduct transactions is a strong red flag. This could indicate efforts toobscure ownership, avoid detection, or conductsuspicious structuringbehavior to stay below reporting thresholds.

No community discussion yet for this question.