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Acams Exam CAMS Topic 4 Question 64 Discussion

Actual exam question for Acams's CAMS exam
Question #: 64
Topic #: 4
[All CAMS Questions]

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?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Catarina at Jan 06, 2023, 02:40 PM

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Dottie
23 days 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'.
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Gussie
1 months 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.
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Aretha
1 months 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.
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Honey
16 days ago
D) Account signer's government issued identification lists addresses outside of where the branch account was opened
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Katheryn
20 days ago
C) The names provided at account opening are identified as the corporation's representative nominees
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Tresa
22 days ago
B) The nature and purpose of the business include international remittance transfers
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Lillian
23 days ago
A) Expected activity was advised to include cash letter and money orders
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Kirk
1 months 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.
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Monroe
2 months ago
I think option A is also a red flag, as cash letters and money orders can be used for money laundering.
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Ria
2 months ago
I agree with Mitsue, because the addresses listed should match where the account was opened.
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Mitsue
2 months ago
I think the red flag is option D.
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