IFIC Mutual Funds Licensing Practice Exam · Question
Which of the following is considered a 'red flag' for potential money laundering by a client?
Making large cash deposits, especially in small denominations, without a clear legitimate source, is a common 'red flag' for money laundering. Legitimate invest
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
Question: Which of the following is considered a 'red flag' for potential money laundering by a client?
Answer options: ✅ Making a large deposit of cash in small denominations.
- Regularly contributing to Registered Retirement Savings Plans (RRSPs).
- Providing clear and consistent identification documents.
- Having a well-defined investment objective.
Correct answer: Making a large deposit of cash in small denominations.
Explanation: Making large cash deposits, especially in small denominations, without a clear legitimate source, is a common 'red flag' for money laundering. Legitimate investors typically use cheques or electronic transfers for large investments. The other options are normal investor behavior.
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
More about IFIC Mutual Funds Licensing Practice Exam
More for IFIC Mutual Funds Licensing Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free IFIC Mutual Funds Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.