A new accounts representative recently opened an account for individual whose stated employment is tutoring students.
Which customer action indicates possible money laundering?
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A. B. C. D.C
Of the options provided, the most suspicious customer action that indicates possible money laundering is transferring all funds to another bank on the same day of large cash deposits (option C). This activity is commonly known as structuring and is a common method used by money launderers to avoid detection and evade transaction reporting requirements.
Option A, continually making weekly small cash deposits, may also be suspicious if the amounts are just below the transaction reporting threshold and are structured to avoid detection. However, the information provided does not specify the frequency or amount of the deposits, so it is not possible to determine if this behavior is suspicious.
Option B, periodically initiating wire transfers to another account owned by a relative, may be a legitimate transaction if the customer has a legitimate reason for doing so, such as providing financial support to a family member. However, the frequency and amounts of the transfers should be reviewed to determine if they are consistent with the customer's stated employment as a tutor.
Option D, opening a savings account and making frequent transfers from the checking account, is not necessarily suspicious and may be a common practice for many customers. However, the transactions should be reviewed to ensure they are consistent with the customer's stated employment as a tutor and that there is a legitimate reason for the transfers.
In summary, transferring all funds to another bank on the same day of large cash deposits is the most suspicious customer action that indicates possible money laundering. It is important to investigate this activity further and determine if there is a legitimate reason for the transactions or if they are indicative of illicit activity.