Series 79 practice questioneasyAnti-Money Laundering in IB Context
Which of the following would most likely trigger enhanced customer due diligence under AML rules for an investment bank?
- AA U.S.-based corporate client with a 10-year banking relationship
- BA state pension fund investing in a public offering
- CA foreign private investment company with complex ownership structure✓ Correct answer
- DAn individual investing $2,000 in a private placement
Explanation
Why C — A foreign private investment company with complex ownership structure
Complex, opaque ownership structures in foreign entities are a classic AML red flag requiring enhanced due diligence. The trap is assuming only large or new clients trigger this obligation.
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