Which of the following activities are considered money laundering red flags when reviewing business operations of a money services business (MSB)? (Select Two.)
Correct Answer: D,E
MSBs are high-risk for financial crime, requiring strict AML controls.
Option D (Correct): Hesitancy to provide beneficiary information is a strong indicator of illicit financial activity.
Option E (Correct): Using multiple accounts under different names is a known money laundering technique.
Option A (Incorrect): Currency exchange is common in MSBs, though additional factors must be assessed.
Option B (Incorrect): Large cash deposits are normal for cash-based businesses, but need further scrutiny.
Option C (Incorrect): Frequent small remittances are normal, unless linked to structuring or smurfing.