Potential indicators of money laundering associated with Trust and Company Service Providers include: (Select Two.)

Trust and Company Service Providers (TCSPs) are often exploited to create complex legal structures that obscure beneficial ownership and the flow of illicit funds. Using legal persons (like shell companies) in jurisdictions with strong secrecy laws is a classic method to hide the ultimate owner (A). Similarly, creating multi-layered, cross-border structures to move money via wire transfers without any apparent legitimate business reason is a primary indicator of the layering stage of money laundering facilitated by TCSPs (C). Both tactics are hallmarks of TCSP misuse.

B. Structuring cash deposits is a general money laundering red flag (placement stage) not specifically associated with the services of TCSPs.
D. Using rental income to legitimize funds is a common integration method, but it is not an indicator tied specifically to the abuse of TCSPs themselves.
E. Frequent account activity is a very general alert trigger that can apply to any type of account and is not a specific indicator for TCSP-related risk.

1. Financial Action Task Force (FATF). (2019). Risk-Based Approach Guidance for Trust and Company Service Providers. FATF, Paris, France. (pp. 31-32, Annex B provides examples of risk indicators, including "Use of legal persons or arrangements in jurisdictions with high levels of secrecy" and "Complex ownership and control structures involving many layers of legal persons and arrangements").

2. ACAMS. (2023). CAMS Certified Anti-Money Laundering Specialist Study Guide. (Chapter 2: "Vulnerabilities of Specific Products and Services" details how TCSPs are abused through the creation of shell companies in secrecy havens and complex international layering schemes).