Money laundering through real estate is a common method of disguising the source and ownership of illicit funds. Real estate transactions often involve large amounts of money, complex legal structures, and cross- border transfers, which can obscure the true nature and origin of the funds. The new business customer in this scenario raises several red flags that warrant enhanced due diligence, such as:
* The business was established five years ago but has a vague website and no physical presence in the state where it is registered.
* One of the principals has an international phone number and lives abroad, which could indicate a foreign shell company or a politically exposed person.
* The other principal works out of a recreational vehicle, which could suggest a lack of legitimate business activity or income.
* The business claims to be a real estate business, but does not provide any details about its projects, clients, or partners.
These factors suggest that the business may be involved in money laundering through real estate, either by purchasing properties with illicit funds, using properties to generate illegal income, or selling properties to launder money. Therefore, the financial institution should conduct enhanced due diligence to verify the identity, background, and source of funds of the business and its principals, as well as the purpose and nature of the account relationship.
ACAMS Study Guide for the CAMS Certification Examination - 6th Edition, Chapter 2: Money Laundering Risks and Methods, pp. 46-47 Enhanced Due Diligence in Construction and Real Estate, by James Swenson, Ethixbase 360 Due Diligence & Legal Considerations in Commercial Real Estate, by Justia

The Egmont Group's 100 Cases1, the Financial Action Task Force Typologies2, and FinCEN's SAR Activity Review3 are all sources of information related to money laundering trends, methods, and risks. They provide examples, analysis, and guidance on how to detect, prevent, and report money laundering and other financial crimes. The Wolfsberg Principles4, on the other hand, are a set of global standards for the prevention of moneylaundering in the correspondent banking and private banking sectors. They are not intended to provide information on money laundering trends, but rather to establish best practices and minimum requirements for financial institutions to comply with anti-money laundering regulations and expectations.
Egmont Group's 100 Cases1
Financial Action Task Force Typologies2
FinCEN's SAR Activity Review3
The Wolfsberg Principles4

Financial Intelligence Units (FIUs) are national agencies that collect, analyze, and disseminate information on suspicious or unusual financial activity, such as money laundering and terrorist financing, to relevant authorities. One of their main functions is to disseminate the results of their analysis to law enforcement agencies in a timely manner, so that they can initiate investigations or prosecutions. This is also one of the standards set by the Financial Action Task Force (FATF), the global body that sets the anti-money laundering and counter-terrorist financing (AML/CFT) policies and recommendations. The other options are not the primary responsibilities of FIUs, although they may perform them as part of their mandate or in cooperation with other agencies.
What are Financial Intelligence Units (FIUs)? | Dow Jones
Financial Intelligence Units: An Overview - IMF
Financial Intelligence Units - Egmont Group
FATF Recommendation 29 - Financial Intelligence Units (page 17)
Reference: https://knowledgehub.transparency.org/assets/uploads/helpdesk/Financial-Intelligence- Units_Design-Mandate-Powers_2019_PR.pdf

According to the CAMS Study Guide, page 173, "If an independent investigation provides grounds to interview the employee, the employee can be interviewed and, if necessary, terminated, but not advised that he or she is under investigation by law enforcement." This is because informing the employee of the law enforcement investigation could compromise the integrity of the case and potentially expose the institution to legal liability. Therefore, option B is the correct answer.
CAMS Study Guide, page 1731
CAMS Exam Questions and Free Practice Test, Question 2872

Antiques are a potential tool for money laundering because they can be used to conceal, move, and convert illicit funds. Antiques can be of high value and often easily transported across borders, making them attractive for criminals who want to evade detection and reporting. Antiques can also be difficult to value and authenticate, creating a lack of transparency and accountability in the market. Criminals can exploit this to inflate or deflate the prices of antiques, or to use them as collateral for loans or other transactions. Antiques can also be used to layer or integrate illicit funds into the legitimate economy, by selling them through auction houses, dealers, or online platforms.
CAMS Certification Package - 6th Edition, Chapter 4: Conducting and Supporting the Investigation Process, pp. 97-98.
Anti-money laundering and the art and antiquities market - a US and UK perspective, Mishcon de Reya LLP,
2022.
Antiques: an unconventional money laundering tool, The Express Tribune, 2023.
Art and Antiquities an Attractive Market for Money Laundering, FATF Argues, OCCRP, 2021.