Potential Money Laundering with Subsidiary Shell Companies | CAMS Exam Prep

Detecting Potential Money Laundering: Subsidiary Shell Companies

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Question

An institution receives a request for credit from a local company that has been a client for many years. The information provided by the company indicates that its assets have increased substantially with the addition of several new subsidiaries. Further research performed by the institution indicates the new subsidiaries are recently created shell companies.

Could this indicate potential money laundering?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

B

Option D is the most appropriate answer. The creation of shell