A client opens a bank account for a multi-level marketing company. The debits and credits of the account are numerous and very involved. Further, there are a lot of international transactions. Also…

Question

Options

• ADetermine who are the signatories on the account
• BAsk the bank for the history of this multi-level marketing company
• CExamine the flow of money from the company to the individual in an effort to determine if it is
• DExamine possible Suspicious Activity Report information received from the local Financial

• A
  80% (47)
• B
  7% (4)
• D
  14% (8)

Explanation

The correct answer is A and C. Law enforcement should determine who are the signatories on the account and examine the flow of money from the company to the individual in an effort to determine if it is legitimate. These steps would help to identify the source and destination of the funds, the purpose and nature of the transactions, and the possible involvement of money laundering or other financial crimes. Asking the bank for the history of the multi-level marketing company (B) may not be relevant or useful, as the company may have a legitimate business model or a false front. Examining possible Suspicious Activity Report information received from the local Financial Intelligence Units (D) may be helpful, but it is not a necessary step, as the bank may not have filed any reports or the reports may not contain sufficient information.

No community discussion yet for this question.