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Acams CAMS Exam - Topic 3 Question 60 Discussion

An EU Trust and Company Service Provider (TCSP) analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?
C) The payment of consultancy fees to unrelated companies and service providers established in a foreign jurisdiction.
A) Inter-company loans from the holding company to the subsidiary company to finance the shipment of machinery.
B) The payment of virtual offices services overseas.
D) The payment of company secretarial retainer fees to a foreign company in a tax efficient jurisdiction.

Acams CAMS Exam - Topic 3 Question 60 Discussion

Actual exam question for Acams's CAMS exam
Question #: 60
Topic #: 3
[All CAMS Questions]

An EU Trust and Company Service Provider (TCSP) analyst notices some unusual activity while looking through a customer's financial statements and detailed general ledger. The customer is in the business of importing and exporting machineries. Which transaction indicator warrants further escalation to the compliance officer?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Jeanice at Oct 28, 2022, 03:33 AM

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Crista
10 months ago
Surprised that virtual office payments (B) aren't more concerning!
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Allene
11 months ago
D seems odd too, why pay secretarial fees to a foreign company?
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Vallie
11 months ago
Really? I thought inter-company loans were common in this industry.
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Jolene
11 months ago
I agree, C definitely raises red flags!
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Louann
11 months ago
Option C looks suspicious, especially with unrelated companies involved.
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Elmer
11 months ago
I practiced a similar question where payments to foreign companies were flagged for potential tax evasion. I think that might apply here as well.
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Celestina
11 months ago
The virtual office services overseas seem suspicious too, but I feel like the consultancy fees might be more concerning given the lack of connection to the business.
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Lauran
11 months ago
I'm not entirely sure, but I think inter-company loans can sometimes be legitimate, but they might also be used to disguise other activities.
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Jenise
11 months ago
I remember we discussed how payments to unrelated companies in foreign jurisdictions can be red flags, especially if they seem excessive or unnecessary.
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Zita
12 months ago
Hmm, this seems like a tricky one. I'll need to think carefully about the purpose of an RBI effort and what the key deliverables should be.
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Gail
12 months ago
Okay, I've seen this type of question before. I believe the key is understanding how the Intermediate Pod Network (IPN) is used to forward broadcast traffic across pods. I think option B is the correct answer, but I'll double-check the details to be sure.
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Alethea
12 months ago
The hash value is throwing me off a bit. I'm not sure if that's a relevant indicator or not. I'll have to think about that one.
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Merissa
12 months ago
I think balancing charges definitely increase taxable profit, but I'm confused about how balancing allowances fit into that.
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Cordelia
12 months ago
Based on my understanding, ERISA is focused on regulating and overseeing employee benefit plans to protect the participants. So I'm going to go with option A as the best answer.
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