MENU
The compliance officer for a bank is reviewing on-boarding documents for a new business account for a
domestic corporation. The officer is unable to verify the identity of the beneficial owners of the company. Only
information on the nominee owners was provided, and none of the listed addresses are local. The purpose of
the business and future expected activity were disclosed to include cash letters, money orders and
international remittance transfers.
Which red flag identifies a heightened money laundering risk?
Suggested Answer: A
Get Premium CAMS Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
34 comments · newest first
FL
Florinda
12 months ago
Not sure if cash letters and money orders are that risky, though.
TA
Tamie
1 year ago
Agreed, nominee owners raise serious questions about transparency.
ME
Merilyn
1 year ago
Wait, why are all the addresses outside the local area? That seems off.
AN
Annamaria
1 year ago
I think the international remittance transfers are the biggest concern.
JO
Jose
1 year ago
Definitely a red flag with nominee owners involved.
GO
Golda
1 year ago
I practiced a similar question where nominee ownership was a key factor, so I’m leaning towards that being a significant red flag here.
SE
Selma
1 year ago
I feel like the addresses being outside the local area is definitely suspicious, especially for a new business account.
EV
Eva
1 year ago
I think the international remittance transfers could indicate higher risk, but I'm not entirely sure if that's the main concern here.
KA
Karon
1 year ago
I remember we discussed how nominee owners can complicate identity verification, so that might be a red flag.
BO
Bong
1 year ago
Okay, I think I've got it. The leaf node is missing the EVPN NLRI configuration, so I'll go with option D.
FR
Francesco
1 year ago
Hmm, this is a tricky one. I know GDPR covers sensitive personal data like health, race, and political views, but I'm not 100% sure about financial information. I'll have to think this through carefully.
IL
Ilene
1 year ago
I've got this! The question is asking what we customize to prepare for identifying duplicates. The answer has to be options A and B - defining recency/reliability and selecting comparison fields.
SH
Sharee
1 year ago
Okay, I think I've got this. Based on the question, I'm pretty sure the correct answer is option B, "dladm show-dev". That command should give me the information I need about the network devices installed on the system.
DO
Dottie
1 year ago
Haha, this is like a 'spot the red flags' game. Nominee owners, international transfers, and no local addresses? Sounds like a money launderer's dream come true. I'd shut this down faster than you can say 'suspicious activity report'.
CO
Coleen
1 year ago
C) The names provided at account opening are identified as the corporation's representative nominees
SU
Susana
1 year ago
B) The nature and purpose of the business include international remittance transfers
LE
Leonor
1 year ago
A) Expected activity was advised to include cash letter and money orders
GU
Gussie
2 years ago
Hmm, I'm not sure. The international remittance transfers could be legitimate business activities. But the lack of verification on the beneficial owners is concerning. I'd need more information to make a call on this one.
VA
Valda
1 year ago
C) The names provided at account opening are identified as the corporation's representative nominees
WH
Whitley
1 year ago
B) The nature and purpose of the business include international remittance transfers
RY
Ryan
1 year ago
A) Expected activity was advised to include cash letter and money orders
AR
Aretha
2 years ago
Wow, this is a textbook case of potential money laundering activities. The nominee owners and the disclosed business activities are all huge red flags. I'd be very cautious about this account.
VE
Verona
1 year ago
We should definitely proceed with caution and conduct further investigation into this account.
TR
Tresa
1 year ago
The expected activity of cash letters and money orders is also concerning.
AL
Alecia
1 year ago
I think the fact that the account signer's ID lists addresses outside of where the account was opened is a major red flag.
FE
Felicia
1 year ago
I agree, the combination of nominee owners and the disclosed business activities is definitely suspicious.
HO
Honey
1 year ago
D) Account signer's government issued identification lists addresses outside of where the branch account was opened
KA
Katheryn
1 year ago
C) The names provided at account opening are identified as the corporation's representative nominees
TR
Tresa
1 year ago
B) The nature and purpose of the business include international remittance transfers
LI
Lillian
1 year ago
A) Expected activity was advised to include cash letter and money orders
KI
Kirk
2 years ago
The inability to verify the beneficial owners is a major red flag. Cash letters, money orders, and international remittance transfers are all common money laundering tactics. This is definitely a high-risk scenario.
MO
Monroe
2 years ago
I think option A is also a red flag, as cash letters and money orders can be used for money laundering.
RI
Ria
2 years ago
I agree with Mitsue, because the addresses listed should match where the account was opened.
MI
Mitsue
2 years ago
I think the red flag is option D.