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

What are the three methods identified as 'Funds Transfers' in emerging money laundering risks?

1. Cryptocurrency, Bank Transfers, Peer-to-Peer Lending

2. Stored Value Cards, Mobile Payments, Internet Payments

3. Cash Transactions, Gift Cards, Wire Transfers

4. Bartering, Bonds, Insurance Policies

The correct answer is: Stored Value Cards, Mobile Payments, Internet Payments

The identification of the three methods as 'Funds Transfers' in the context of emerging money laundering risks highlights contemporary payment systems that facilitate the transfer of funds and can be susceptible to misuse. Stored Value Cards are preloaded with a specific monetary value and can be used for transactions up to that limit. They are increasingly popular and are difficult to trace, making them a potential vehicle for laundering money as they can be used anonymously in various transactions. Mobile Payments have gained traction due to the proliferation of smartphones. These allow users to send and receive funds quickly and easily, often without facial verification or extensive identity checks, thereby presenting risks for illicit activities if not properly monitored. Internet Payments encompass a broad category of financial transactions made online, including e-commerce and other digital payment methods, which can also lack stringent oversight, increasing the chance for abuse by criminals seeking to obscure the origins of illicit funds. Together, these methods reflect a modern evolution in how funds are transferred, presenting specific challenges for anti-money laundering efforts as they often do not require physical interaction and can facilitate rapid, anonymous exchanges, making it crucial for compliance frameworks to adapt to these emerging threats.