Arms and related materials embargo is a type of sanction that prohibits the supply, sale, transfer, or export of arms and related materials to a targeted country, entity, or individual. This type of sanction is most likely to be used in order to avoid escalating violent conflicts and/or proliferation of weapons, as it aims to reduce the availability and access of weapons and ammunition that could fuel violence and instability. Arms and related materials embargo can also prevent the transfer of weapons of mass destruction and their delivery systems to non-state actors or rogue states. According to the UN, arms and related materials embargo is one of the most common and effective forms of sanctions that the Security Council imposes to address threats to international peace and security12.
1: Different types of sanctions - Consilium1
2: UN Sanctions and the Prevention of Conflict - United Nations University2 Reference: https://collections.unu.edu/eserv/UNU:6431/UNSanctionsandPreventionConflict-Aug-2017.pdf (3)

Predicate offenses are the criminal activities that generate the proceeds that are later laundered through money laundering schemes. A country that does not have strong predicate offenses and is lax in prosecuting AML cases could suffer from increased organized crime and corruption, as criminals would have more opportunities and incentives to engage in illicit activities and evade detection and punishment. Organized crime and corruption can have serious social and economic consequences for a country, such as undermining the rule of law, eroding public trust, threatening national security, harming human rights, reducing economic growth, and distorting market competition123.
References:
CAMS Certification Package - 6th Edition | ACAMS
Understanding Predicate Offences: The Hidden Web of Money Laundering
Predicate Offenses In Money Laundering - Financial Crime Academy
AML Terms Easily Confused: Predicate Offense vs. Money Laundering

When assessing the risk rating of customers, financial institutions should consider various factors that may indicate the potential for money laundering, terrorist financing, or other illicit activities. According to the ACAMS Study Guide for the CAMS Certification Examination1, some of the key risk factors are:
Customer risk: This refers to the characteristics of the customer that may affect their risk profile, such as their identity, occupation, source of funds, business activities, reputation, and political exposure. For example, customers who are politically exposed persons (PEPs), cash-intensive businesses, non-resident customers, or customers with complex ownership structures may pose a higher risk of money laundering or terrorist financing.
Geographic risk: This refers to the location of the customer, their business, or their transactions, and the level of risk associated with that location. For example, customers who are based in, operate in, or transact with jurisdictions that have weak anti-money laundering (AML) regulations, high levels of corruption, or are subject to sanctions or embargoes may pose a higher risk of money laundering or terrorist financing.
Product risk: This refers to the type of products or services that the customer uses or offers, and the level of risk associated with those products or services. For example, customers who use or offer products or services that are anonymous, complex, or facilitate cross-border transactions may pose a higher risk of money laundering or terrorist financing.
Other risk factors that may be considered include transaction risk, delivery channel risk, and industry risk2.
However, these are not among the options given in the question.
References: = Some of the references that support this answer are:
ACAMS Study Guide for the CAMS Certification Examination, Chapter 4, Section 4.1, pages 97-99:
"Customer Risk Factors", "Geographic Risk Factors", "Product Risk Factors".
Customer Risk Rating: Connecting Customer Risk Rating With Due Diligence, Section "Customer Risk Rating Factors": "Transaction Risk Factors", "Delivery Channel Risk Factors", "Industry Risk Factors".

Certain corporate structuresobscure beneficial ownership, making themattractive for money laundering.
* Option A (Correct):Nominee shareholders and directors conceal the true owners of a company, increasing AML risk.
* Option C (Correct):Bearer shares allow ownership to be transferred anonymously, making it difficult to trace transactions.
* Option E (Correct):Private investment companies in tax havens with strict secrecy laws enable illicit fund movements.
Why Other Options Are Incorrect:
* Option B (Incorrect):A private company that does not operate in a tax haven presents lower ML risk.
* Option D (Incorrect):A foreign LLC is not necessarily high-risk unless linked to a secrecy jurisdiction.
Best Practices for Identifying High-Risk Corporate Structures:
* Require full disclosure of beneficial ownership.
* Apply enhanced due diligence (EDD) on tax-haven entities.
* Monitor for unusual cross-border transactions.
Reference:
FATF Recommendation 24 (Beneficial Ownership Transparency)
6th EU AML Directive (6AMLD) on Corporate Transparency
OECD Guidance on Tax Haven Risks & Shell Companies