Which of the following statements is true?
A Credit cards are not likely to be used in the layering phase of money laundering
because of restrictions in cash payments
B Credit cards are effective instruments for laund
...
Which of the following statements is true?
A Credit cards are not likely to be used in the layering phase of money laundering
because of restrictions in cash payments
B Credit cards are effective instruments for laundering money because the transactions
do not create a paper trail
C A launderer can launder money by prepaying his credit card using funds that are
already in the banking system, creating a credit balance on his account, and requesting
a credit refund
D A launderer can use illicit funds that are already in the banking system to pay his
credit card bill for goods purchased, which is an example of placement - ✔✔C
Why is a Payable Through Account vulnerable to money laundering?
A These are master correspondent accounts established at a domestic bank by a
foreign bank that allow the customers of the foreign bank to do a wide range of
transactions
B These are correspondent accounts located in a non-cooperative country or territory
C These are nested correspondent accounts at a foreign shell bank with customers with
whom the domestic bank did not exercise due diligence
D These are master escrow accounts on which a domestic bank generally does not
conduct periodic verification - ✔✔A
Which of the following statements is true? Correspondent banking is MOST
vulnerable to money laundering when the correspondent account is:
A. Maintained for foreign financial institutions that are banks
B. Not used to provide services directly to third parties
C. Maintained for a foreign bank that does not have a physical presence in any country
D. Maintained for a foreign private bank that is publicly traded and is a qualified
intermediary - ✔✔C
Which statement is true?
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