Acams Question No 20

Question No 20:

Which of the following statements is true?

A. Credit cards are not likely to be used in the layering phase of money laundering because of restrictions in cash payments
B. Credit cards are effective instruments for laundering money because the transactions do not create a paper trail
C. A launderer can launder money by prepaying his credit card using funds that are already in the banking system, creating a credit balance on his account, and requesting a credit refund
D. A launderer can use illicit funds that are already in the banking system to pay his credit card bill for goods purchased, which is an example of placement

Answer: C