SIE Exam Question 179: Answer and Explanation

Question: 179

Which of the following account activities in a newly opened account would raise suspicions as a possible money laundering activity?

• A. Multiple deposits that are immediately wired out of the account to a foreign bank.
• B. Multiple deposits from other financial institutions that fund the purchases of several securities that remain in the account.
• C. One large deposit that is only partially invested in securities.
• D. Funds received via Fedwire

Correct Answer: A

Explanation:

Multiple deposits that are immediately wired out of the account to a foreign bank would raise suspicions as a possible money laundering activity. All other choices are considered normal transactions and, therefore, not suspicious activity that could be seen on money laundering.