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Acams Exam CAMS-FCI Topic 4 Question 11 Discussion

Actual exam question for Acams's CAMS-FCI exam

Question #: 11
Topic #: 4

[All CAMS-FCI Questions]

Which payment method for purchasing luxury items is a red flag for potential money laundering?

APersonal loan

BCash

CWire transfer

DCredit card

Show Suggested Answer

Suggested Answer: B

According to the Financial Action Task Force (FATF), the use of large amounts of cash is a common method for money launderers to move illicit funds [1]. Purchasing luxury items with cash can indicate an attempt to convert illegal funds into tangible assets that can be easily resold or moved across borders. As a result, businesses that deal with luxury items are required to implement enhanced due diligence measures, including monitoring transactions involving large amounts of cash [1].

by Billi at Feb 10, 2025, 09:40 PM

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Sarah

3 months ago

Personal loan? That's like trying to borrow money from your grandma to buy a Ferrari. I'm not falling for that one!

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Aretha

2 months ago

Credit card is the safest option for purchasing expensive items.

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Mi

2 months ago

I agree, wire transfers are also suspicious when buying luxury items.

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Raina

2 months ago

Cash is definitely a red flag for money laundering.

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Merlyn

3 months ago

Credit card? That's like using a flashing beacon to attract the attention of the IRS. I'm gonna have to go with B.

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Keva

3 months ago

Wire transfer? Seriously, who uses that for luxury items these days? That's so 1990s money laundering.

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Rupert

2 months ago

B) Cash

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Clemencia

2 months ago

Yeah, credit card is much more common and secure for luxury items.

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Zona

2 months ago

D) Credit card

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Milly

2 months ago

I agree, wire transfer seems outdated for luxury purchases.

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Chi

2 months ago

D) Credit card

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Twana

3 months ago

C) Wire transfer

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Magda

3 months ago

B) Cash

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Valentine

3 months ago

A) Personal loan

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Barbra

4 months ago

I disagree, I think cash is the most suspicious payment method for luxury items.

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Dion

4 months ago

Hmm, cash? That's like a neon sign saying 'I've got something to hide.' I'll have to go with B on this one.

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Samuel

3 months ago

Credit card is the safest option for purchasing luxury items.

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Natalie

3 months ago

Wire transfer could also be a red flag, it's hard to trace.

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Carmen

3 months ago

I agree, using cash for luxury items is suspicious.

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Lorita

4 months ago

Hmm, cash? That's like a neon sign saying 'I've got something to hide.' I'll have to go with B on this one.

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Willodean

4 months ago

D) Credit card

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Janna

4 months ago

C) Wire transfer

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Karan

4 months ago

Cash is definitely a red flag for money laundering.

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Yolando

4 months ago

B) Cash

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Vincent

4 months ago

A) Personal loan

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Jerry

4 months ago

I agree with Candida, wire transfer can be used to hide the source of funds.

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Candida

4 months ago

I think wire transfer is a red flag for money laundering.

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