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

Which payment method is NOT identified as 'Funds Transfers' in emerging money laundering risks?

1. Stored Value Cards

2. Mobile Payments

3. Wire Transfers

4. Internet Payments

The correct answer is: Wire Transfers

The classification of payment methods in the context of money laundering risks is crucial for understanding how illicit funds might be moved and concealed. Funds transfers typically involve moving money from one account or entity to another through various mechanisms. Wire transfers are a well-established method of moving money electronically, often over long distances, and are typically subject to rigorous regulatory scrutiny. This makes them a prominent example of a funds transfer method in discussions about money laundering. Stored value cards, mobile payments, and internet payments each represent forms of transferring funds, but they also come with unique risks associated with their anonymity, global reach, and ease of use. Stored value cards can hold balances that can be spent directly without needing a bank account, which can facilitate untraceable transactions. Mobile and internet payments often allow users to conduct transactions using mobile devices or online platforms, which can complicate traceability and regulatory oversight. Since wire transfers are recognized explicitly as a funds transfer method, the correct answer highlights that they are primarily categorized under that definition in the context of emerging money laundering risks, whereas the other payment methods, despite their connection to funds transfer, might not be as classically categorized or might engage different levels of regulatory scrutiny. This distinction helps in understanding the landscape of money laundering tactics and the importance