Worried you’ll miss a money laundering sign in the CeMAP exam?
Money laundering scenarios often lurk in exam questions for Unit 1, so spotting the warning signs can make all the difference.
These Top 5 Money Laundering Red Flags are just a preview of our full CeMAP Unit 1 compliance module—but they’ll give you the edge in your studies and in real-world adviser roles.
1. Unusual Payment Patterns
Large or repetitive payments that don’t match a client’s profile can indicate layering techniques. For example, multiple mortgage overpayments followed by quick withdrawals is suspicious.
Tutor Tip: Remember that you must understand client “know your customer” (KYC) information—any mismatch in income versus transaction activity should raise questions.
2. Reluctance to Provide Information
When a client is evasive about their source of funds or employment details, that’s a classic warning sign. Under COBS money laundering rules, advisers must obtain proof of identity and source of wealth.
Tutor Tip: If a client refuses documentation, politely explain that it’s an FCA requirement and non-negotiable for compliance.
3. Complex Ownership Structures
Loan applications involving trusts, offshore companies or multiple layers of ownership can be a red flag. These structures are often used to obscure the true beneficiary.
Tutor Tip: Sketch out ownership chains on paper—it can help you visualise where concealment may occur.
4. Unusual Behaviour or Nervousness
Obsessive secrecy, impatience or visible anxiety when discussing money flows can hint at illicit motives. Always note behavioural red flags in your suitability report.
Tutor Tip: Behavioural signs alone aren’t proof, but they should prompt you to probe further and document your questions.
5. Third-Party Payments
Payments made by someone other than the mortgage applicant—especially from unconnected parties—are a major red flag. These could be attempts to conceal the real source of funds.
Tutor Tip: Always verify any third-party payment with written confirmation of the payer’s identity and relationship to the client.
Final Thoughts
These 5 flags are just a preview of our full CeMAP Unit 1 compliance topics covered in our training programmes—packed with topic breakdowns, exam-style questions and regulation guidance.
You don’t have to tackle CeMAP alone. With 25 years in training services and career guidance, Futuretrend is your expert guide through every regulation, revision session, and exam day.