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CAMS · Question #909

CAMS Question #909: Real Exam Question with Answer & Explanation

The correct answer is A. The customer is attempting to convert illicit funds into "clean" withdrawals. In the context ofgambling and gaming sectors, a well-known money laundering typology is the use of platforms tointroduce illicit funds and withdraw them as "winnings". When a customerdeposits large cash amounts and quickly withdraws themwithout engaging in actual gambling, it ind

Question

A customer frequently deposits large amounts of cash into an online gambling account and requests withdrawals shortly after with minimal gambling activity. What is the most likely money laundering risk associated with this behavior in the gambling and gaming industry?

Options

  • AThe customer is attempting to convert illicit funds into "clean" withdrawals
  • BThe customer is attempting to avoid high fees by minimizing gambling activity
  • CThe customer is testing the gaming platform's payout system for potential fraud
  • DThe customer is a high-risk gambler who regularly places large bets

Explanation

In the context ofgambling and gaming sectors, a well-known money laundering typology is the use of platforms tointroduce illicit funds and withdraw them as "winnings". When a customerdeposits large cash amounts and quickly withdraws themwithout engaging in actual gambling, it indicates"placement and layering"techniques. This behavior is indicative of attempts todisguise the origin of illicit funds, converting them into legitimate-looking financial flows. It is considered a classic red flag in AML programs related to casinos and online gaming.

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