According to the ACAMS study guide, one of the red flags for money laundering in crowdfunding platforms is “projects that are fully funded within a very short period of time, especially if the funding comes from a small number of donors or from a single donor” (p. 222). This could indicate that the project is a front for laundering illicit funds or financing terrorism. The other options are not necessarily indicative of money laundering risk, as they could be explained by legitimate factors such as the popularity, urgency, or ambition of the project.
ACAMS. (2020). Study Guide for the Certification Examination for Anti-Money Laundering Specialists (6th ed.). Miami, FL: ACAMS.
ESMA. (2015)Questions and Answers: Investment-based crowdfunding and money laundering/terrorist financing 1. Paris, France: ESMA.
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