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Canadian Securities Course (CSC) Practice Exam · Question

Which of the following is a 'red flag' that might indicate potential money laundering activity?

Structuring transactions, such as making numerous deposits just under reporting thresholds, is a classic warning sign of potential money laundering, as individu

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Question: Which of the following is a 'red flag' that might indicate potential money laundering activity?

Answer options: ✅ Numerous cash transactions just under the reporting threshold

  • Regular, predictable contributions to an RRSP
  • A client seeking long-term growth investments
  • A client asking for a clear explanation of investment risks

Correct answer: Numerous cash transactions just under the reporting threshold

Explanation: Structuring transactions, such as making numerous deposits just under reporting thresholds, is a classic warning sign of potential money laundering, as individuals try to avoid regulatory scrutiny.

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