Methods and Techniques — Prelims Questions

Consider the following statements about trade-based money laundering (TBML): 1. It involves manipulation of trade documentation to transfer value across borders 2. Over-invoicing allows excess payments to represent laundered funds 3. It is easily detectable through automated banking systems 4. The Financial Intelligence Unit-India monitors trade transactions for TBML patterns Which of the statements given above are correct?

Which of the following best describes the 'smurfing' technique in money laundering?

Consider the following about correspondent banking vulnerabilities in money laundering: 1. Nested accounts reduce transparency in international transactions 2. Wire stripping involves removing identifying information from payment messages 3. Enhanced due diligence is required only for high-risk jurisdictions 4. The Reserve Bank of India has issued specific guidelines for correspondent banking How many of the above statements are correct?

Which of the following is NOT a characteristic of shell companies used in money laundering?

In the context of digital currency money laundering, what is the primary purpose of 'mixing services' or 'tumblers'?