A compliance officer is reviewing transactions related to a company suspected of being involved in wildlife trafficking. Which of the activities below are common in wildlife trafficking schemes? (Choose two.)
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A. B. C. D. E.AD
Wildlife trafficking involves the illegal trade of animals and their products. This illicit industry generates billions of dollars annually, making it a lucrative enterprise for criminals. To prevent such illegal activities, compliance officers must be aware of the common activities involved in wildlife trafficking schemes.
Out of the given activities, the two common activities in wildlife trafficking schemes are as follows:
Large dollar wire transfers between wildlife farms and firms operating in inconsistent lines of business (Option C): In wildlife trafficking, criminals often create shell companies or use legitimate businesses as fronts to hide the illegal activities. Wildlife farms may use such businesses to launder the proceeds of wildlife trafficking. These businesses may operate in unrelated or inconsistent lines of business to avoid detection. Large dollar wire transfers between these businesses and wildlife farms can be an indication of such illicit activities.
Exchanging fiat currency to cryptocurrency to accomplish payment to the wildlife farm (Option B): Criminals involved in wildlife trafficking schemes may use cryptocurrencies to conceal their activities. Cryptocurrencies offer anonymity and are difficult to trace, making them an attractive option for criminals. Fiat currency can be exchanged for cryptocurrencies, making it easier to transfer funds to wildlife farms without attracting attention. Compliance officers should be aware of any cryptocurrency activity related to wildlife trafficking and report any suspicious transactions.
The other options are not necessarily common activities in wildlife trafficking schemes, although they may be used in other types of financial crimes.
A. Payment of transportation charges using a fraudulent financial instrument: This activity is a common red flag in fraudulent activities, but it may not be specific to wildlife trafficking.
D. Customer requests payment of proceeds to an unrelated third party: This activity may be an indication of money laundering, but it is not specific to wildlife trafficking.
E. Activity involving politically exposed persons with environmental, game, or forestry oversight: This activity may be an indication of corruption or bribery, but it is not specific to wildlife trafficking.