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NEW QUESTION 23
A U.K. real estate agent has three foreign clients interested in purchasing an apartment building, valued at £30 million, in the outskirts of London as an investment property. The clients are not willing to have their names provided to the bank. The clients want the purchase to be made in the names of three private companies for privacy reasons. The plan is to wire the funds into an account held in the name of another private company at a bank in London.
Which red flag should stop the agent from discussing this potential purchase further?

  • A. The clients are foreign
  • B. The clients want the purchase to be made in the names of the private companies
  • C. The clients have the funds necessary to fund a £30 million purchase
  • D. The clients are not willing to have their names provided to the bank

Answer: D

 

NEW QUESTION 24
A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer's accounts, you notice that credit card receipts have increased with no .
The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction on a patio dining area.
Which red flag should trigger additional investigation?

  • A. Privately-owned ATM
  • B. Construction of the new patio dining area
  • C. Lower cash deposits
  • D. Increased credit card receipts

Answer: D

 

NEW QUESTION 25
How can a financial institution verify the nature and purpose of a business and its legitimacy? Choose 3 answers

  • A. By reviewing a copy of the corporation's latest audited reports and accounts
  • B. By reviewing the company's website
  • C. By using an independent information verification process, such as by accessing public and private databases
  • D. By undertaking a company search or other commercial inquires to see that the institution has not been, or is not in the process of being dissolved of terminated

Answer: A,C,D

 

NEW QUESTION 26
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