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

What key factor contributes to the effectiveness of money laundering strategies through 'Bureau de Change'?

1. The high volume of international tourists

2. Limited customer identification measures

3. Availability of government funding

4. The popularity of foreign currencies

The correct answer is: Limited customer identification measures

The effectiveness of money laundering strategies through 'Bureau de Change' is significantly influenced by limited customer identification measures. When money exchange institutions do not enforce strict identification protocols, this creates an environment where illicit funds can be easily introduced into the financial system. The lack of thorough Know Your Customer (KYC) processes enables criminals to convert their illegal gains into seemingly legitimate currency without attracting attention. In contrast, while factors like the high volume of international tourists or the popularity of foreign currencies might indeed play a role in the general operations of a Bureau de Change, they do not directly contribute to the facilitation of money laundering in the same way that insufficient identification and verification practices do. Government funding likewise doesn’t inherently relate to the money laundering mechanism within these exchanges. Therefore, the key factor lies in the regulatory gaps that allow for anonymity in transactions, significantly benefiting those seeking to launder money.