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

Why would a launderer utilize a concentration account?

1. To make large withdrawals quickly

2. To commingle funds without revealing the originator

3. To increase interest rates

4. To facilitate direct transactions

The correct answer is: To commingle funds without revealing the originator

A concentration account is often used by money launderers to combine funds from various sources into a single account. This strategy allows them to obscure the origins of the money, as the commingling of different funds makes it difficult to trace any particular amount back to its harmful or illegal source. By consolidating money in this way, launderers can distance the funds from their original, potentially illicit origins, thereby complicating the tracking efforts of financial institutions and law enforcement. While large withdrawals and transactional efficiency are considerations in financial operations, they do not capture the primary purpose and advantage of a concentration account for money launderers, which centers on hiding the origin of funds. Increasing interest rates is more relevant to traditional banking concerns rather than to the objectives of money laundering. Facilitating direct transactions may involve separate mechanisms, such as using intermediaries or other types of accounts, rather than the specific structure and concealment tactics provided by concentration accounts.