A client is a wholesale auto business that operates as a used car lot. The client regularly ships vehicles internationally. In a four-month period, the client received wires totaling $1,250,000 from a dealer in Benin in West Africa. All wires originated from Benin and were in increments of $50,000.
Account debits made to the account were payable to various transport companies. All incoming checks reference various vehicles purchased. Dock shipping receipts produced by the client to support account activity identify the vehicles but cannot easily be tied to the wires received.
What is the suspicious behavior?
Click on the arrows to vote for the correct answer
A. B. C. D.C
Based on the provided information, the suspicious behavior in this scenario is the large, even-dollar wire transfers received from a dealer in Benin, West Africa. The wires were received in increments of $50,000, totaling $1,250,000 over a four-month period. The fact that the wires are in large, round amounts is a common indicator of potential money laundering activity, as it may indicate an attempt to avoid detection and bypass reporting requirements.
Additionally, the account debits made to the account being payable to various transport companies is also a red flag. The use of transport companies for account debits is a common technique used by money launderers to move funds around undetected, as it can make it difficult to trace the ultimate destination of the funds.
While the dock shipping receipts produced by the client to support account activity identify the vehicles, it cannot easily be tied to the wires received. This lack of transparency and difficulty in tracing the funds further adds to the suspicion.
The fact that the client regularly ships vehicles internationally is not necessarily suspicious, as this is a legitimate business activity for a wholesale auto business operating as a used car lot. Similarly, the fact that the dock shipping receipts match the vehicles is also not necessarily suspicious, as this is a normal part of the business operation.
Overall, the large, even-dollar wire transfers and the use of transport companies for account debits are the most significant indicators of potential money laundering activity in this scenario.