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ACAMS CAMS Practice Test 7

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A bank has opened a new account for a well-known attorney to manage client funds. During the first six months, bank staff observe the account receives multiple deposits via wire transfer. They also observe that the attorney withdraws cash, makes payments to various people, and transfers funds to the law firm's account online.

What is considered a red flag for potential money laundering in this situation?

Withdrawing cash

Withdrawing cash

Making payment to various people

Making payment to various people

Receiving multiple deposits via wire transfer

Receiving multiple deposits via wire transfer

Transferring funds to his law firm's account online

Transferring funds to his law firm's account online

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Suggested answer: B
Explanation:

According to the ACAMS CAMS Study Guide, one of the methods that attorneys may use to facilitate money laundering is to make payments to third parties on behalf of their clients, using funds from their client accounts. This may obscure the source and destination of the funds, and create a false appearance of legitimate transactions. Therefore, making payment to various people is a red flag for potential money laundering in this situation.

ACAMS CAMS Study Guide, 6th Edition, page 117

FATF Report on Money Laundering and Terrorist Financing Vulnerabilities of Legal Professionals, June 2013, page 341

AML/CFT Red Flags for Lawyers, AML-CFT.net, October 20202

asked 27/11/2024
Osman Rana
40 questions