The customer directing the payment of the money borrowed to an unrelated third party is a red flag for potential money laundering, as it could indicate layering or integration of illicit funds. The other options are not necessarily indicative of money laundering, although they could warrant further monitoring or due diligence depending on the customer profile and risk assessment.
References:
ACAMS Study Guide for the CAMS Certification Examination, 6th Edition, Chapter 3, page 97, section "Red Flags for Life Insurance Policies".
ACAMS CAMS Certification Video Training Course, Module 3, Lesson 3.2, "Red Flags for Life Insurance Policies".

When seekinglegal evidence across borders,MLATsare themost formal and effective mechanism.
Option A (Correct):MLATsprovide alegal frameworkfor exchangingevidence in criminal investigations.
Option B (Incorrect):TheEgmont Secure Webfacilitatesintelligence sharing between FIUs, butnot legal evidence.
Option C (Incorrect):INTERPOL focuses on law enforcement cooperation, but not formalevidence gathering for prosecutions.
Option D (Incorrect):Direct requestsbetween anti-corruption authorities may not havelegal standing in court.
Reference:FATF Recommendation 40 (International Cooperation), UN Convention Against Corruption (UNCAC), Mutual Legal Assistance Treaties (MLATs).

Trade-based money laundering (TBML) is a method of disguising and moving illicit funds through the international trade system. Criminals often manipulate various aspects of trade transactions, such as pricing, quantity, documentation, and commodity type, to transfer value and obscure the source of funds. Some of the common red flags that may indicate TBML are:
* The transaction involves the use of front (or shell) companies: Front or shell companies are entities that have no physical presence, no employees, and no business activity, but are used to facilitate money laundering. They often have vague or generic names, are registered in secrecy jurisdictions, and have no available ownership information. In this case, ABC Holdings Ltd. and Sunrise Holdings Ltd. could be front or shell companies that are used to launder money through trade transactions.
* The type of commodity being shipped appears inconsistent with the exporter or importer's regular business activities: Criminals may use commodities that are unrelated to their core business or that have low correlation with the market price to launder money. They may also use commodities that are difficult to value, verify, or trace, such as precious metals, gems, art, or antiquities. In this case, the automotive parts company and the silk flower supplier seem to have no logical connection, and the value of the silk flowers may be inflated or deflated to transfer funds.
Trade-Based Money Laundering: Risk Indicators - Financial Action Task Force, pp. 9-10, 14-15 Identifying TBML: 8 Trade-Based Money Laundering Red Flags - Alessa, pp. 1-2 FFIEC BSA/AML Appendices - Appendix F - Money Laundering and Terrorist Financing Red Flags, p. 7 AML Red Flags - What are the Top 10 Indicators? - ComplyAdvantage, p. 1

Money laundering risks arise whentransaction patternsareinconsistent with a business's expected activity.
Option D (Correct):Multiple cash deposits in different branchesis a knownstructuring (smurfing) technique, used toevade cash transaction reporting thresholds.
Option A (Incorrect):Depositing intoboth checking and savings accountsisnormal behavior.
Option B (Incorrect):Irregular incoming paymentsmay require further review but arenot inherently suspicious.
Option C (Incorrect):Industry-related expenses (e.g., conference tickets)arenormal business activity.
Reference:FATF Red Flags for Structuring, Wolfsberg Group KYC Best Practices, FinCEN Advisory on Money Laundering Techniques.

shell banks are banks that have no physical presence in any country and are not affiliated with any regulated financial institution. They are often used by money launderers and terrorist financiers to hide their illicit activities and evade regulatory oversight. The USA PATRIOT Act prohibits US financial institutions from opening or maintaining correspondent accounts with shell banks, and requires them to take reasonable steps to ensure that their foreign correspondent banks do not provide services to shell banks12. Therefore, the US does not have jurisdiction over shell banks operating in foreign jurisdictions, unless they are involved in transactions that violate US laws or sanctions.
USA PATRIOT Act Section 313: Prohibition on U.S. Correspondent Accounts with Foreign Shell Banks1 Fact Sheet Regarding the Treasury Department's Use of Sanctions Authorities to Combat Money Laundering and Terrorist Financing3 Reference: https://www.congress.gov/107/plaws/publ56/PLAW-107publ56.htm