Acams CAMS Exam - Topic 1 Question 70 Discussion

Actual exam question for Acams's CAMS exam

Question #: 70
Topic #: 1

A high-volume dealer of precious metals and stones in a high-risk jurisdiction is approached by a new customer interested in selling gold worth $200,000. The customer was referred by a longtime family friend of the dealer and provides no indication of background or business purpose for the sale. The dealer agrees to make the purchase based solely on the reference.

What is the money laundering red flag?

AThe customer was referred by a longtime friend of the dealer

BThe precious metals dealer is operating in a high-risk jurisdiction

CA new customer is selling gold worth $200,000 to a high volume dealer

DThe customer provides no background information or business purpose for the transaction

Show Suggested Answer

Suggested Answer: C

by Markus at Mar 18, 2024, 09:20 PM

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Jerry

5 months ago

Selling $200k worth of gold without context? Really?

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Virgina

5 months ago

High-risk jurisdiction makes it even riskier.

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Ashton

5 months ago

Wait, no business purpose? That sounds sketchy.

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Nobuko

6 months ago

I disagree, referrals can be trustworthy.

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Harrison

6 months ago

The customer provides no background info, that's a huge red flag!

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Dorthy

6 months ago

I'm not sure, but I feel like the referral from a friend might not be enough to justify the purchase without more details.

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Freida

6 months ago

I practiced a similar question where the focus was on new customers and large transactions. I think that might apply here too.

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Terina

7 months ago

I think the high-risk jurisdiction is definitely a concern, but I feel like the missing business purpose is more critical here.

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Corrina

7 months ago

I remember discussing how a lack of background information can be a major red flag in transactions like this.

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Teri

7 months ago

Whoa, this is a tricky one. There are a few different factors at play - the high-risk location, the large cash sale, and the lack of customer info. I'll have to weigh them all to decide the most significant red flag.

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Eloisa

7 months ago

Okay, let's see. The customer referral from a family friend could be a way to add legitimacy, but the lack of any stated business purpose is really suspicious. I think I'll go with option D on this one.

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Felicitas

7 months ago

Hmm, I'm not sure. The high-risk jurisdiction and large cash transaction are also potential red flags, right? I'll need to think through all the details carefully.

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Leonida

7 months ago

This seems like a straightforward money laundering red flag to me. The lack of background information from the customer is the key issue here.

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Elena

7 months ago

Hmm, I'm not sure about this one. I'll have to think it through carefully. Technology can be used in both efficient and inefficient ways.

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Karrie

7 months ago

This looks like a pretty straightforward PIM protocol question. I'll start by thinking about the key characteristics of each packet type.

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Irma

7 months ago

I just want to double-check—are we using the total gross hospital bed days directly in the formula? That part is clear, but I'm hesitant about the rounding rule again.

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Shad

7 months ago

I think the IPA model does capitate practitioners, but I might be mixing it up with other managed care models from our practice questions.

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Lashaun

7 months ago

Wait, is the recording of problems also mandatory? I'm not 100% sure about that one. I better double-check my notes to make sure I don't miss anything important.

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Tijuana

11 months ago

Wait, did you say 'high-volume dealer of precious metals'? I bet this guy's got a bad case of 'bling fever' and just can't stop buying shiny things. That's the real red flag here!

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Naomi

12 months ago

I don't know, maybe the friend referral is a good thing? It could just be an honest transaction. Although, the lack of business purpose is a bit suspicious. Hmm, tough call.

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