An accounting firm opened an account at a bank that is intended to be used as the operational account for the business. After a few months, a comprehensive review of the account was triggered due to unusual activity on the account. Which most likely triggered the review?
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A. B. C. D.B
https://www.ifc.org/wps/wcm/connect/e7e10e94-3cd8-4f4c-b6f8-1e14ea9eff80/45464_IFC_AML_Report.pdf?MOD=AJPERES&CVID=mKKNshyThe most likely reason for the comprehensive review of the accounting firm's account is option A: "The account receives international payments that are substantially higher than other fees they typically receive." This is because receiving international payments that are substantially higher than other fees the accounting firm typically receives can be considered unusual activity and could potentially be indicative of money laundering or other illicit financial activity.
International payments, especially from countries or regions that are known for high levels of financial crime, may raise suspicions if they are not consistent with the accounting firm's usual business activities. In addition, large amounts of money being moved through an account can be a red flag, particularly if there is no clear explanation for the increase in activity.
Option B: "The account sends monthly donations to several charities that operate in the same communities as the accounting firm," while potentially indicative of charitable giving, is less likely to trigger a comprehensive review unless there are other red flags present.
Option C: "The account receives several payments a day from multiple customers who operate in different industries" is also less likely to trigger a review unless there are other factors involved, such as large sums of money being transferred or the customers being linked to high-risk industries.
Option D: "The account receives international wires from companies in the Middle East where the accounting firm has several branches" could also raise suspicions, but it is not as likely to trigger a comprehensive review as option A. If the accounting firm has several branches in the Middle East, it would be expected that they would receive international wires from these branches. However, if the payments are unusual in nature or frequency, or if they come from high-risk countries or entities, this could be cause for concern.
Overall, the specific circumstances surrounding the activity on the account would be taken into account when determining whether a review is necessary, but option A would be the most likely trigger for a comprehensive review.