Acams CAMS-FCI Exam - Topic 4 Question 11 Discussion

Actual exam question for Acams's CAMS-FCI exam

Question #: 11
Topic #: 4

[All CAMS-FCI Questions]

Which payment method for purchasing luxury items is a red flag for potential money laundering?

APersonal loan

BCash

CWire transfer

DCredit card

Show Suggested Answer

Suggested Answer: B

According to the Financial Action Task Force (FATF), the use of large amounts of cash is a common method for money launderers to move illicit funds [1]. Purchasing luxury items with cash can indicate an attempt to convert illegal funds into tangible assets that can be easily resold or moved across borders. As a result, businesses that deal with luxury items are required to implement enhanced due diligence measures, including monitoring transactions involving large amounts of cash [1].

by Billi at Feb 10, 2025, 09:40 PM

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Hyman

7 months ago

Wait, cash is a red flag? I had no idea!

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Eileen

7 months ago

I disagree, credit cards are safer for big purchases.

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Sheldon

7 months ago

Personal loans? Really? That seems odd.

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Merilyn

7 months ago

I think wire transfers can be sketchy too.

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Diane

7 months ago

Cash is definitely a red flag.

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Lorrine

8 months ago

I practiced a similar question, and I think cash is definitely the answer. It just feels like the most obvious choice for money laundering.

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An

8 months ago

I feel like personal loans could also raise questions, but I can't recall the specifics.

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Ernest

8 months ago

I remember discussing wire transfers in class; they can be risky too, but cash seems more suspicious for luxury items.

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Ben

8 months ago

I think cash might be a red flag since it's harder to trace, but I'm not entirely sure.

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Johnson

8 months ago

I'm leaning towards wire transfer as the answer. That method can also be used to move illicit funds around more easily than other payment options.

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Steffanie

8 months ago

Cash is definitely the most obvious choice here. Luxury items purchased with large amounts of cash are often a sign that the buyer is trying to conceal the origins of their money.

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Tegan

8 months ago

Hmm, I'm not totally sure about this one. I know cash transactions can be used to hide the source of funds, but I'm not certain if that's the only red flag. I might need to think this through a bit more.

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Mable

8 months ago

This one seems pretty straightforward. I'm going to go with cash as the payment method that's a red flag for potential money laundering.

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Sarah

1 year ago

Personal loan? That's like trying to borrow money from your grandma to buy a Ferrari. I'm not falling for that one!

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Aretha

1 year ago

Credit card is the safest option for purchasing expensive items.

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Mi

1 year ago

I agree, wire transfers are also suspicious when buying luxury items.

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Raina

1 year ago

Cash is definitely a red flag for money laundering.

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Merlyn

1 year ago

Credit card? That's like using a flashing beacon to attract the attention of the IRS. I'm gonna have to go with B.

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Keva

1 year ago

Wire transfer? Seriously, who uses that for luxury items these days? That's so 1990s money laundering.

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Rupert

1 year ago

B) Cash

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Clemencia

1 year ago

Yeah, credit card is much more common and secure for luxury items.

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Zona

1 year ago

D) Credit card

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Milly

1 year ago

I agree, wire transfer seems outdated for luxury purchases.

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Chi

1 year ago

D) Credit card

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Twana

1 year ago

C) Wire transfer

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Magda

1 year ago

B) Cash

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Valentine

1 year ago

A) Personal loan

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Barbra

1 year ago

I disagree, I think cash is the most suspicious payment method for luxury items.

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Dion

1 year ago

Hmm, cash? That's like a neon sign saying 'I've got something to hide.' I'll have to go with B on this one.

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Samuel

1 year ago

Credit card is the safest option for purchasing luxury items.

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Natalie

1 year ago

Wire transfer could also be a red flag, it's hard to trace.

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Carmen

1 year ago

I agree, using cash for luxury items is suspicious.

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Lorita

1 year ago

Hmm, cash? That's like a neon sign saying 'I've got something to hide.' I'll have to go with B on this one.

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Willodean

1 year ago

D) Credit card

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Janna

1 year ago

C) Wire transfer

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Karan

1 year ago

Cash is definitely a red flag for money laundering.

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Yolando

1 year ago

B) Cash

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Vincent

1 year ago

A) Personal loan

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Jerry

1 year ago

I agree with Candida, wire transfer can be used to hide the source of funds.

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Candida

1 year ago

I think wire transfer is a red flag for money laundering.

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