Lawyers’ trust accounts arecommonly exploited for money laundering, particularly forlayering and integration stages.

Option A (Correct):Receiving and immediately forwarding wire transfers from unknown sources in a high-risk jurisdiction is a strong red flag for money laundering.

Option B (Incorrect):While legal professionals in high-risk countries require monitoring, the transaction itself is not necessarily suspicious.

Option C (Incorrect):Insurance company payments are typically traceable, reducing money laundering risk.

Option D (Incorrect):Lawyers handling real estate transactions is normal unless the deal structure is highly irregular.

Red Flags for Money Laundering in Legal Professions:

Use of client accounts to receive and distribute funds without legal purpose.

Multiple transactions involving unrelated third parties.

Legal services that do not align with the nature of payments received.

Best Practices for AML in Legal Professions:

Conduct enhanced due diligence (EDD) on high-risk transactions.

Monitor transactions involving high-risk jurisdictions.

File Suspicious Activity Reports (SARs) for unexplained transactions.