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

Why are 'Bureau de Change' establishments attractive to money launderers?

1. They provide high interest loans

2. They are less regulated than traditional banks

3. They offer tax benefits to money launderers

4. They produce detailed transaction records

The correct answer is: They are less regulated than traditional banks

'Bureau de Change' establishments are particularly attractive to money launderers primarily because they are less regulated than traditional banks. This reduced level of oversight allows for greater flexibility in conducting transactions that may not attract the same level of scrutiny typically applied to banking institutions. In many jurisdictions, Bureau de Change operations are often categorized differently than banks, resulting in a lighter regulatory framework. This can include less stringent requirements for customer identification and reporting suspicious transactions. Consequently, individuals engaged in money laundering may take advantage of these conditions to convert illicit funds into different currencies with less risk of detection. The aspects related to high-interest loans, tax benefits, and detailed transaction records are not inherent characteristics of these establishments that would draw money launderers. In fact, money launderers are less likely to seek transaction records that could potentially serve as evidence of their illegal activities. Additionally, Bureau de Change operations typically do not offer significant tax advantages that would appeal to those looking to launder money.