A company service provider in Country A sets up a corporate structure for a client from Country B, which is known for corruption. The corporate structure includes a holding company in Country A with a bank account in one of the international banks located there.
During on-boarding, the client’s wealth was estimated at $7 million. Shortly thereafter, the client’s father became president of Country B. During a routine client review two years later, it was identified that client’s wealth had grown to $510 million.
What are two red flags that indicate money laundering or financial terrorism? (Choose two.)
A . The client is from a country known for corruption.
B . The substantial growth in wealth during a short period of time.
C . The client is a family member of a PEP from a country known for corruption.
D . The holding company is in Country A with a bank account in one of the international banks.
Answer: BC
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