Scenario 65: Which of the following is considered a 'red flag' for potential money laundering by a client?

Question: Scenario 65: 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. The correct answer is "Making a large deposit of cash in small denominations.". This capacity-fill scenario 65 reinforces the same competency for the ific bank and follows the certified explanation standard.