Acams CAMS Exam - Topic 1 Question 92 Discussion

Actual exam question for Acams's CAMS exam

Question #: 92
Topic #: 1

[All CAMS Questions]

A customer's registered business activity is a domestic carpet cleaning company. Besides domestic receipts, there are incoming weekly transactions from an international reputable

auction house starting at 15,000 USD and averaging 30,000 USD. The matching cash outgoings amount to 90% of the incoming deposits to non-related individuals. Which is most

concerning for potential money laundering?

AThe customer is paying 90% of the incoming proceeds to non-related individuals in cash.

BThe customer is a domestic carpet cleaning company.

CThe customer's international incomings are from an international reputable antique auction house.

DThe customer's initial international receipt has increased from 15,000 USD to an average of 30,000 USD per transaction per week.

Show Suggested Answer

Suggested Answer: A

The customer's business activity as a domestic carpet cleaning company is not inherently suspicious, as it aligns with their registered business. However, the significant weekly transactions from an international reputable antique auction house raise red flags.

The sudden increase in the customer's initial international receipt from $15,000 USD to an average of $30,000 USD per transaction per week is also noteworthy. Such a substantial change warrants further scrutiny.

The fact that 90% of the incoming deposits are matched by cash outgoings to non-related individuals could indicate layering or structuring activities associated with money laundering.

Overall, the combination of large international transactions, increased receipts, and cash outflows to unrelated parties from an antique auction house is the most concerning aspect.

Anti-Money Laundering Specialist (the 6th edition) resources.

ACAMS AML Glossary (definitions of terms related to AML).1

ACAMS AML Foundations Certificate (overview of AML concepts and responsibilities).2

ComplyAdvantage: 6th Money Laundering Directive (6AMLD) (details on AML regulations and penalties).3

by Velda at Jan 12, 2025, 05:04 AM

Limited Time Offer

25%

Off

Get Premium CAMS Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Dona

3 months ago

Surprised by the auction house connection, seems sketchy to me!

upvoted 0 times

...

Merissa

3 months ago

Totally agree, the cash outgoings raise a red flag for sure!

upvoted 0 times

...

Hubert

4 months ago

Wait, why would a carpet cleaner have such high international transactions?

upvoted 0 times

...

Claudio

4 months ago

Definitely concerning that 90% of the cash goes to non-related individuals.

upvoted 0 times

...

Lai

4 months ago

The customer is a carpet cleaning company, but getting that much from an auction house is odd.

upvoted 0 times

...

Ethan

4 months ago

I thought that having a reputable source like an auction house in option C would be safe, but I guess it could still be problematic with those cash outgoings.

upvoted 0 times

...

Cammy

5 months ago

I practiced a similar question where the nature of the business was important, but I feel like the cash payments in option A are the biggest issue here.

upvoted 0 times

...

Ben

5 months ago

I'm not entirely sure, but I think the increase in transaction amounts in option D could indicate suspicious activity too.

upvoted 0 times

...

Luz

5 months ago

I remember discussing how large cash transactions can be a red flag for money laundering, so option A seems concerning.

upvoted 0 times

...

Theron

5 months ago

The domestic carpet cleaning business seems like a legitimate cover, but the international auction house transactions and the high cash outgoings are definitely suspicious. I'll need to weigh all the factors carefully.

upvoted 0 times

...

Lucina

5 months ago

I think the most concerning aspect is the high volume of cash payments to non-related individuals. That's a classic money laundering tactic, so I'd focus on that in my answer.

upvoted 0 times

...

Latrice

5 months ago

Hmm, I'm a bit confused by the international auction house transactions. Are those legitimate business activities, or could they be a cover for something else?

upvoted 0 times

...

Curt

5 months ago

The key thing that stands out to me is the 90% cash outgoings to non-related individuals. That seems like a potential red flag for money laundering.

upvoted 0 times

...

Kirk

5 months ago

This question seems straightforward, but I want to make sure I understand all the details before answering.

upvoted 0 times

...

Leslie

1 year ago

You know, if I had a carpet cleaning company that was suddenly raking in 30 grand a week from some auction house, I'd be suspicious of myself too. Just saying.

upvoted 0 times

...

Carman

1 year ago

I bet those 'reputable' auction house payments are actually a front for some shady business. Better keep an eye on that customer!

upvoted 0 times

...

Helaine

1 year ago

Hmm, I'm not sure the domestic carpet cleaning business itself is a concern. It's the cash payouts and international transactions that seem questionable.

upvoted 0 times

Skye

1 year ago

B: Yeah, that does seem suspicious. Especially with the large international transactions.

upvoted 0 times

...

Chandra

1 year ago

A: The customer is paying 90% of the incoming proceeds to non-related individuals in cash.

upvoted 0 times

...

Julio

1 year ago

C) The customer's international incomings are from an international reputable antique auction house.

upvoted 0 times

...

Flo

1 year ago

A) The customer is paying 90% of the incoming proceeds to non-related individuals in cash.

upvoted 0 times

...

Laurel

1 year ago

But what about option D? The sudden increase in international receipts could also be a red flag for money laundering.

upvoted 0 times

...

Laurene

1 year ago

I agree with Kristel. Paying 90% of the incoming proceeds to non-related individuals in cash seems suspicious.

upvoted 0 times

...

Kristel

1 year ago

I think option A is most concerning for potential money laundering.

upvoted 0 times

...

Omega

1 year ago

The 90% cash payouts to non-related individuals is definitely a red flag for potential money laundering. The increasing international deposits are also suspicious.

upvoted 0 times

Desmond

1 year ago

A) The customer is paying 90% of the incoming proceeds to non-related individuals in cash.

upvoted 0 times

...

Maynard

1 year ago

C) The customer's international incomings are from an international reputable antique auction house.

upvoted 0 times

...

Osvaldo

1 year ago

A) The customer is paying 90% of the incoming proceeds to non-related individuals in cash.

upvoted 0 times

...