Trading Patterns Indicative of Money Laundering in Capital Markets

D

Of the four options provided, the trading pattern that may be indicative of money laundering in capital markets is "D. Transacting with multiple counterparties."

Money laundering involves disguising the origin of illegally obtained funds to make them appear legitimate. One of the ways this can be done is through a complex web of transactions that involve multiple parties and accounts, making it difficult to trace the origin of the funds. This is where transacting with multiple counterparties comes into play.

By transacting with multiple counterparties, money launderers can create a complex web of transactions that can hide the true origin of the funds. For example, a money launderer may buy a security from one counterparty and then sell it to another, and repeat this process multiple times with different counterparties. This can make it difficult for regulators and law enforcement to identify the ultimate source of the funds.

While the other answer choices may also be indicative of money laundering in certain contexts, they are not necessarily specific to capital markets. For example, a free of payment asset transfer can be used to move illicit funds without actually transferring money. A remittance of a round dollar amount could be used to avoid detection by appearing as a legitimate business transaction. Trading on an account is a common practice in capital markets and may not be inherently suspicious.

In summary, transacting with multiple counterparties in capital markets may be indicative of money laundering because it can be used to create a complex web of transactions that can conceal the true origin of the funds.