Trading, Accounts & Prohibited ActsQuestion 286 of 398
Which of the following is most clearly an AML red flag when opening or servicing an account?
a.A customer who is reluctant to provide identifying information and wants to move funds quickly with no clear business purpose
b.A customer who provides a valid government ID and clear source of funds
c.A retiree making regular, modest contributions to an IRA
d.A customer who asks about a fund's expense ratio
Explanation
Reluctance to provide identification, secrecy about the source of funds, and transactions with no apparent business or lawful purpose are classic AML red flags. Providing valid ID and a clear source of funds is normal, expected behavior.
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