The correct answer is D.

Check cashing companies, also known as money services businesses, provide customers with an easy way to turn their checks into cash without having to rely on a bank account. As such, one would expect to see deposit activity that’s commensurate with cash withdrawals as the money is released to the relevant persons. That this did not happen for a prolonged period raises questions as to the source of the check deposits. This is unusual and suspicious behavior, especially for a check cashing company. The lack of cash withdrawals against check deposits could indicate potential money laundering or other illicit activities. Therefore, this should arouse Simon’s suspicion the most.

Choice A is incorrect. While it may be unusual for a customer to show an atypical level of curiosity about fees, this behavior alone does not necessarily indicate suspicious activity. It could simply mean that Mr. Lincoln is a cautious and informed customer who wants to understand all the costs associated with his account.

Choice B is incorrect. Although the source of funds can sometimes be a red flag for potential money laundering or other illicit activities, depositing checks from casinos in itself isn’t necessarily suspicious. Casinos are legitimate businesses and it’s possible that Mr. Lincoln received these checks as winnings or payments for services rendered.

Choice C is incorrect. Having multiple accounts at the same institution isn’t inherently suspicious either, especially if one account is used for business transactions (like check cashing) and another for personal savings.

Things to Remember

• Money Services Businesses (MSBs) like check cashing companies provide customers with the ability to convert checks into cash without using a traditional bank account.