Which of the following entities could potentially pose a higher money laundering risk and require additional review prior to onboarding? (Select Two.)

Question

Options

• AA large multinational corporation with extensive, documented wire transfer activity
• BA local convenience store that replenishes the onsite automated teller machine (ATM) with cash
• CA local used car sale lot that allows individuals to pay their monthly bill in cash
• DA virtual asset service provider (VASP), facilitating peer-to-peer cryptocurrency transactions

• A
  18% (3)
• B
  12% (2)
• C
  71% (12)

Explanation

Higher-risk customer profilesoften include businesses that: Regularly handle large volumes of cash Operate in sectors withhistorical vulnerabilities to money laundering Are involved invirtual assets or unregulated financial activities Option C - A local used car sale lot that allows cash payments: This business type is consideredcash-intensive, and accepting monthly payments in cash raises concerns about the source of funds, potential structuring, or placement of illicit proceeds. Option D - A Virtual Asset Service Provider (VASP): VASPs involved inpeer-to-peer crypto transactionspresent elevated AML risks due to theanonymity, speed, and borderless natureof virtual assets. These institutions are often subject toenhanced due diligence requirements.

No community discussion yet for this question.