A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $1, 250, 000 from a dealer in Benin in West Africa. All wires originated from Benin and were in increments of $50, 000. Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires received.What is the suspicious behavior?
Answer(s): C
A high-volume dealer of precious metals and stones in a high-risk jurisdiction is approached by a new customer interested in selling gold worth $200, 000. The customer was referred by a longtime family friend of the dealer and provides no indication of background or business purpose for the sale. The dealer agrees to make the purchase based solely on the reference.What is the money laundering red flag?
Answer(s): D
What does the Financial Action Task Force 40 Recommendations address on transparency of beneficial ownership?
https://www.fatf-gafi.org/documents/news/transparency-and-beneficial-ownership.html
A compliance officer identifies a potentially significant risk in a popular financial product. Further investigation reveals there is no mitigating control.Which course of action should the compliance officer take?
Which factor should a bank consider before sharing information about a customer with its broker-dealer affiliate in the case of an investigation?
Answer(s): B
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