Which of the following transactions would most likely trigger the need for enhanced due diligence under anti-money laundering requirements?
Correct Answer
B) A foreign national purchasing multiple investment properties with large cash down payments from overseas accounts
Transactions involving foreign nationals, multiple properties, large cash payments, and overseas funding sources present higher money laundering risks and typically require enhanced due diligence. These factors combined create a profile that warrants additional scrutiny under AML requirements.
Why This Is the Correct Answer
Transactions involving foreign nationals, multiple properties, large cash payments, and overseas funding sources present higher money laundering risks and typically require enhanced due diligence. These factors combined create a profile that warrants additional scrutiny under AML requirements.
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During final underwriting review, a lender discovers the borrower's debt-to-income ratio was miscalculated, requiring additional reserves. This necessitates the borrower to bring an extra $5,000 to closing. How should this be handled under TRID?
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An MLO learns that a borrower is purchasing a home to live with their same-sex partner. The MLO processes the application normally but mentions that 'some neighborhoods might be more accepting than others.' This statement: