Which item is listed as a corruption red flag in the material?

Which item is listed as a corruption red flag in the material?

• A. Using family or corporate entities to obscure ownership
• B. Unusual cash activity
• C. Misrepresentations such as salary or assets
• D. Accounts in unrelated countries

Answer: (B)

Unusual cash activity signals suspicious, potentially corrupt financial flows. In corruption schemes, funds are often moved in cash to hide bribery, kickbacks, or embezzlement, so movements that don’t fit a client’s normal business pattern stand out. Large cash deposits or withdrawals, frequent transactions just under reporting thresholds, or cash-heavy activity in a non-cash business are telltale signs that require closer scrutiny and escalation. Other items can also raise concerns and may accompany corrupt activity, but the material specifically points to unusual cash activity as the red flag associated with corruption in this context.

Unusual cash activity signals suspicious, potentially corrupt financial flows. In corruption schemes, funds are often moved in cash to hide bribery, kickbacks, or embezzlement, so movements that don’t fit a client’s normal business pattern stand out. Large cash deposits or withdrawals, frequent transactions just under reporting thresholds, or cash-heavy activity in a non-cash business are telltale signs that require closer scrutiny and escalation.

Other items can also raise concerns and may accompany corrupt activity, but the material specifically points to unusual cash activity as the red flag associated with corruption in this context.