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

What role do Non-Financial Trades and Businesses play in money laundering?

1. They are subject to Bank Secrecy Act regulations

2. They help banks process transactions

3. They regulate financial fraud cases

4. They manage consumer trust within the market

The correct answer is: They are subject to Bank Secrecy Act regulations

Non-Financial Trades and Businesses indeed play a significant role in the context of money laundering, especially in relation to the Bank Secrecy Act (BSA). These entities are not typically classified as traditional financial institutions but can still be exploited for laundering illicit funds due to their nature and the types of transactions they conduct. Under the BSA, non-financial businesses and professions can be subject to certain provisions to help detect and prevent money laundering activities. This includes a requirement for certain categories, such as casinos, real estate agents, and precious metal dealers, to report suspicious transactions. By doing so, they enhance the overall monitoring of financial activities and contribute to the integrity of the financial system. When non-financial entities comply with these regulations, they assist in identifying patterns of illicit behavior and can act as an early warning system against money laundering. Consequently, their role is essential in the broader measures aimed at combating financial crime, making them relevant in discussions regarding the regulatory landscape and the prevention of money laundering schemes.