Gatekeepers, including accountants,can be well-positioned to identify and detectchanges in the type of work or...

Gatekeepers (e.g., accountants, auditors, lawyers) play a critical role in detecting financial crime.

Option B (Correct):Corporate clientsposehigher money laundering risksdue tocomplex ownership structures and cross-border financial activities.

Option C (Correct):The nature of requested services(e.g.,offshore structuring, large cash transactions) can indicate potentialmoney laundering attempts.

Why Other Options Are Incorrect:

Option A (Incorrect):The length of time a client has been with an accounting firm does not necessarily indicate financial crime risk.

Option D (Incorrect):Short-term relationships may be high-risk, but understanding the business type and services requested is more critical.

Red Flags for Money Laundering in Professional Services:

Clients requesting offshore structures for no apparent business reason.

Use of complex trusts or nominee directors to obscure ownership.

Unexplained large transactions moving through legal or accounting firms.

Best Practices for Gatekeepers to Prevent Money Laundering:

Perform Enhanced Due Diligence (EDD) on high-risk clients.

Report unusual financial activity to FIUs.

Follow FATF’s DNFBP (Designated Non-Financial Businesses and Professions) AML guidelines.