Which situation is most likely to be deemed suspicious activity?

Which situation is most likely to be deemed suspicious activity?

• A. John makes a large deposit into an annuity via wire transfer
• B. Laura presents a refund check to pay for a new life insurance policy
• C. Toby deposits into an annuity with a personal check
• D. Cassandra pays her insurance premium with cash

Answer: (A)

The situation that is most likely to be deemed suspicious activity is John making a large deposit into an annuity via wire transfer. Large deposits, especially through wire transfers, can draw scrutiny and may be considered suspicious if they do not align with the individual's typical financial behavior or source of funds. Wire transfers are often associated with higher risk, as they can facilitate quick movement of funds without clear documentation of the source, making it easier for illicit funds to be integrated into the financial system. Other transactions, such as presenting a refund check for a new life insurance policy or depositing into an annuity with a personal check, typically involve more traceable methods of payment. They are more likely to reflect legitimate financial activities and carry less risk of suspicion. Similarly, paying an insurance premium with cash may not inherently raise red flags unless the amount is unusually high or inconsistent with the customer's known activities. In general, the unusual characteristics of large wire transfers, particularly when they deviate from standard behavior, make them a common focus for monitoring suspicious activity in financial settings.

The situation that is most likely to be deemed suspicious activity is John making a large deposit into an annuity via wire transfer. Large deposits, especially through wire transfers, can draw scrutiny and may be considered suspicious if they do not align with the individual's typical financial behavior or source of funds. Wire transfers are often associated with higher risk, as they can facilitate quick movement of funds without clear documentation of the source, making it easier for illicit funds to be integrated into the financial system.

Other transactions, such as presenting a refund check for a new life insurance policy or depositing into an annuity with a personal check, typically involve more traceable methods of payment. They are more likely to reflect legitimate financial activities and carry less risk of suspicion. Similarly, paying an insurance premium with cash may not inherently raise red flags unless the amount is unusually high or inconsistent with the customer's known activities. In general, the unusual characteristics of large wire transfers, particularly when they deviate from standard behavior, make them a common focus for monitoring suspicious activity in financial settings.