Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What advantage do debit cards provide to money launderers?

1. They have high transaction limits

2. They can be used only for online purchases

3. They leave little trace of the funds’ sources

4. They are universally accepted without restriction

The correct answer is: They leave little trace of the funds’ sources

Debit cards can be advantageous to money launderers primarily because they leave little trace of the funds' sources. When launderers use debit cards, particularly those that are linked to accounts holding illicitly obtained funds, the transactions can be less conspicuous than other forms of financial activity. This anonymity can make it difficult for regulators or financial institutions to track the origin of the money, providing a layer of protection for the criminal activity associated with money laundering. In many cases, the use of debit cards allows for cash withdrawals or purchases that do not necessitate a formal record of the source of the funds, further obscuring the money trail. This element of discretion is a key factor that makes debit cards appealing for laundering operations, as they can facilitate transactions without the heightened scrutiny often associated with other financial instruments. The other options do not directly contribute to the advantages in the context of money laundering. While high transaction limits could be beneficial, many debit cards do not offer extremely high transaction limits, particularly for cash withdrawals, and may be subject to daily spending limits set by financial institutions. The notion that debit cards can only be used for online purchases is inaccurate, as they are commonly used in physical stores as well. Additionally, while universal acceptance is an advantage for general