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?

AExpected activity was advised to include cash letter and money orders

BThe nature and purpose of the business include international remittance transfers

CThe names provided at account opening are identified as the corporation's representative nominees

DAccount signer's government issued identification lists addresses outside of where the branch account was
opened

Show Suggested Answer

Suggested Answer: A

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

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Dottie

1 months 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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Coleen

3 days ago

C) The names provided at account opening are identified as the corporation's representative nominees

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Susana

6 days ago

B) The nature and purpose of the business include international remittance transfers

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Leonor

14 days ago

A) Expected activity was advised to include cash letter and money orders

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Gussie

2 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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Valda

7 days ago

C) The names provided at account opening are identified as the corporation's representative nominees

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Whitley

7 days ago

B) The nature and purpose of the business include international remittance transfers

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Ryan

9 days ago

A) Expected activity was advised to include cash letter and money orders

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Aretha

2 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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Verona

2 days ago

We should definitely proceed with caution and conduct further investigation into this account.

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Tresa

3 days ago

The expected activity of cash letters and money orders is also concerning.

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Alecia

5 days 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.

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Felicia

8 days ago

I agree, the combination of nominee owners and the disclosed business activities is definitely suspicious.

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Honey

1 months ago

D) Account signer's government issued identification lists addresses outside of where the branch account was opened

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Katheryn

1 months ago

C) The names provided at account opening are identified as the corporation's representative nominees

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Tresa

1 months ago

B) The nature and purpose of the business include international remittance transfers

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Lillian

1 months ago

A) Expected activity was advised to include cash letter and money orders

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Kirk

2 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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