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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?
Suggested Answer: C
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36 comments · newest first
JE
Jerry
11 months ago
Selling $200k worth of gold without context? Really?
VI
Virgina
11 months ago
High-risk jurisdiction makes it even riskier.
AS
Ashton
11 months ago
Wait, no business purpose? That sounds sketchy.
NO
Nobuko
12 months ago
I disagree, referrals can be trustworthy.
HA
Harrison
1 year ago
The customer provides no background info, that's a huge red flag!
DO
Dorthy
1 year 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.
FR
Freida
1 year ago
I practiced a similar question where the focus was on new customers and large transactions. I think that might apply here too.
TE
Terina
1 year ago
I think the high-risk jurisdiction is definitely a concern, but I feel like the missing business purpose is more critical here.
CO
Corrina
1 year ago
I remember discussing how a lack of background information can be a major red flag in transactions like this.
TE
Teri
1 year 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.
EL
Eloisa
1 year 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.
FE
Felicitas
1 year 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.
LE
Leonida
1 year 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.
EL
Elena
1 year 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.
KA
Karrie
1 year ago
This looks like a pretty straightforward PIM protocol question. I'll start by thinking about the key characteristics of each packet type.
IR
Irma
1 year 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.
SH
Shad
1 year 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.
LA
Lashaun
1 year 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.
TI
Tijuana
1 year 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!
NA
Naomi
1 year 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.
BO
Bobbye
1 year ago
Come on, a new customer selling $200,000 worth of gold? That's like a giant neon sign saying 'I'm trying to launder money!'
CO
Cortney
1 year ago
The dealer should definitely proceed with caution in this situation.
MA
Maynard
1 year ago
Definitely a red flag for potential money laundering.
GL
Glen
1 year ago
Agreed, especially with such a large amount of gold.
WI
William
1 year ago
Seems fishy, no background or business purpose given.
LO
Lorenza
1 year ago
Yikes, high-risk jurisdiction and a high-volume dealer? That's a recipe for trouble. I bet this is a money laundering scheme if I ever saw one.
BE
Benton
1 year ago
B) The precious metals dealer is operating in a high-risk jurisdiction
BE
Ben
1 year ago
D) The customer provides no background information or business purpose for the transaction
MI
Michel
1 year ago
A) The customer was referred by a longtime friend of the dealer
JU
Julie
1 year ago
Well, the obvious red flag here is the lack of background information from the customer. A big purchase with no explanation? Smells fishy to me.
HA
Harrison
1 year ago
C: The dealer should definitely be more cautious in this situation.
MA
Malika
1 year ago
B: Yeah, that's a major red flag for money laundering.
OL
Oliva
1 year ago
A: The customer provides no background information or business purpose for the transaction
GL
Glenna
2 years ago
But isn't it also concerning that the dealer is in a high-risk jurisdiction?
MA
Major
2 years ago
I agree with Hannah, not knowing the customer's background is risky.
HA
Hannah
2 years ago
I think the red flag is option D, lack of background information.