CFE – Law — Question 30

Which of the following statements concerning alternative remittance systems is INCORRECT?

Answer options

• A. Funds are sent and received without the use of traditional financial institutions.
• B. The systems are not necessarily illegal.
• C. The ledgers used typically contain information regarding payers and payees, such as names and account numbers.
• D. The systems are characterized by a lack of physical or digital transfer of currency between payers and payees.

Correct answer: D

Explanation

Option D is correct because alternative remittance systems often involve some form of currency transfer, even if it's not through traditional methods. Options A, B, and C are accurate statements about how these systems operate and their legal status.