A customer opens a corporate account with a broker-dealer on behalf of several beneficial owners, with a stated long-term investment goal. The customer deposits $25.5 million into the account and three days later transfers $5 million to an overseas bank. Shortly thereafter, the customer begins making numerous purchases of pesos. The compliance officer receives a query regarding the movement of funds. Within a month of account opening, the customer depletes the account.
Which two red flags should prompt the firm’s compliance officer to take action? (Choose two.)
A . The new account deposit is $25.5 million
B . A corporate account is opened on behalf of several beneficial owners
C . The compliance officer receives the query regarding the movement of funds
D . The customer’s stated investment goal is not reflective of account activity
Answer: CD
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