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

Which groups are known to utilize 'Collection Accounts' for money laundering?

1. Individuals from high-net-worth countries

2. Certain ethnic groups from specific regions, such as Asia or Africa

3. Large corporations across Europe

4. All commercial banking entities

The correct answer is: Certain ethnic groups from specific regions, such as Asia or Africa

The correct choice identifies certain ethnic groups from specific regions, such as Asia or Africa, as known to utilize 'Collection Accounts' for money laundering. Collection Accounts are often set up to facilitate the laundering of illicit funds, allowing for anonymous or indirect transfers of money. In certain cultural or regional contexts, there may be specific financial practices or systems that could be exploited for money laundering purposes. Certain ethnic communities may have established networks or informal systems, such as remittances or community funding practices, that can be misused for laundering money. This highlights a potential susceptibility to money laundering tactics based on both socioeconomic factors and the availability of financial services within specific regions. Other choices, such as individuals from high-net-worth countries, large corporations across Europe, or all commercial banking entities, may not inherently focus on using Collection Accounts for the purpose of laundering money. While high-net-worth individuals or corporations can be involved in sophisticated financial schemes, their use of collection accounts is not as distinct or characteristic as that noted for specific ethnic groups. Thus, the identified relationship to certain ethnic groups reflects a more targeted and historical understanding of money laundering mechanisms within those communities.