CFE – Financial Transactions and Fraud Schemes — Question 35

Which of the following statements is MOST ACCURATE regarding the methods used for making corrupt payments in corruption schemes?

Answer options

• A. Payers cannot make corrupt payments by providing loans to recipients.
• B. Payers cannot pay off a recipient’s credit card debt because of anti-money laundering rules.
• C. Payers can make corrupt payments by giving recipients hidden interests in profit-making enterprises.
• D. Payers often make corrupt payments by selling property to recipients at prices higher than the property’s market value.

Correct answer: C

Explanation

Option C is correct because providing hidden interests in profit-making enterprises is a common method for making corrupt payments. Options A and B incorrectly suggest that loans and credit card payments are not possible, while option D, although plausible, does not represent the most accurate method compared to option C.