A US casino customer has won 55,518 USD. The customer goes to the casino cashier cage to execute some transactions. Which transactions are an indicator of money laundering? (Choose two.)
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A. B. C. D. E.AD
This question is designed to test your knowledge of typical money laundering behavior and your ability to identify potential indicators of suspicious activity.
Out of the given options, the two transactions that could be indicators of money laundering are:
B. The customer transfers 50,000 USD to another personal bank account located in the customer's resident country. D. The customer transfers 100,000 USD to another personal bank account located outside the customer's resident country.
Explanation:
A. The customer requests the cashing out of the winnings in checks under 10,000 USD. This option is not necessarily an indicator of money laundering. The customer may have a legitimate reason for requesting checks under 10,000 USD, such as a desire to avoid filling out currency transaction reports (CTRs), which are required for transactions of 10,000 USD or more.
B. The customer transfers 50,000 USD to another personal bank account located in the customer's resident country. This transaction could be an indicator of money laundering. Transferring funds to an account located in the same country where the customer resides may be an attempt to obfuscate the source of the funds or avoid scrutiny from anti-money laundering (AML) authorities.
C. The customer requests the cashing out of the winnings in a single check. This option is not necessarily an indicator of money laundering. The customer may prefer to receive the funds in a single check for convenience or personal reasons.
D. The customer transfers 100,000 USD to another personal bank account located outside the customer's resident country. This transaction could be an indicator of money laundering. Transferring funds to an account located outside the customer's resident country may be an attempt to move the funds to a jurisdiction with more permissive AML laws or to hide the source of the funds.
E. The customer transfers all the winnings to another personal bank account located outside the customer's resident country. This transaction could also be an indicator of money laundering. Transferring all of the winnings to an account located outside the customer's resident country is a more extreme version of option D and may indicate an attempt to move the funds out of the jurisdiction entirely.
In summary, options B and D are the two transactions that could potentially be indicators of money laundering out of the given options. It's important to note that these transactions alone do not necessarily prove that money laundering has taken place, and further investigation would be required to determine the legitimacy of the transactions.