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 launderi
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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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