cams question 230 discussion

Question 230

A bank sells reloadable open-loop prepaid cards to both customers and non-customers.
What is a red flag associated with these cards that may indicate money laundering?

• A. A bank customer historically purchases several prepaid cards near year-end.
• B. A non-bank customer regularly loads large amounts of cash onto several prepaid cards.
• C. A non-bank customer consistently uses the bank to obtain cash advances using a prepaid card.
• D. A bank customer routinely purchases five prepaid cards in small even-dollar amounts on a monthly basis.