Emerging risk: Exploitation of natural resources.

• A. Self-funding by FTFs
• B. Crowdfunding via social media
• C. New payment products such as online banking
• D. Exploitation of natural resources

Answer: (D)

Emerging risks in AML include sectors where illicit funds can be hidden in plain sight, and exploitation of natural resources is a prime example. The natural resources sector handles high-value commodities—minerals, oil, timber—that move through complex, cross-border trade networks. Because these goods are valuable and traded globally, transactions can be large and opaque, making it easier for criminal proceeds from illegal mining, logging, or wildlife trafficking to be laundered through legitimate companies, trade finance arrangements, and shell entities. This creates multiple pathways for money laundering and may even fund conflict, so it’s recognized as a significant and evolving risk area to monitor. Red flags can include unusual cross-border trade patterns, mispricing or invoice irregularities, opaque ownership structures, and licensing or permit irregularities in resource-related businesses. The other options describe general funding methods or payment-related risks, not the sector-specific emerging risk represented by exploitation of natural resources.