An anti-money laundering analyst is reviewing a new customer list to confirm potentially high risk customers have been identified and subject to enhanced due diligence.
Which new customer warrants enhanced due diligence?
Click on the arrows to vote for the correct answer
A. B. C. D.B
In this scenario, an anti-money laundering analyst is tasked with identifying potentially high-risk customers and subjecting them to enhanced due diligence. The objective of enhanced due diligence is to obtain a higher level of scrutiny of the customer's activities, to ensure that the risk of money laundering and terrorism financing is adequately mitigated.
Out of the given options, the most appropriate customer that warrants enhanced due diligence is the fundraising organization, which is option B. Fundraising organizations are commonly associated with a higher risk of money laundering and terrorist financing due to their ability to raise significant amounts of funds from various sources. These organizations often operate with large amounts of cash, which increases the risk of money laundering.
Non-profit hospitals, employee benefit plan trusts, and medical practice limited partnerships, on the other hand, are generally considered lower risk customers for money laundering and terrorist financing. Non-profit hospitals and employee benefit plan trusts have a clear business purpose, and their transactions are usually transparent and subject to regulations. Medical practice limited partnerships are typically small businesses that do not have the same level of financial resources as fundraising organizations.
Therefore, based on the information provided, option B, the fundraising organization, would be the most appropriate customer to subject to enhanced due diligence.