Which of the following defines an electronic transfer of funds?

Which of the following defines an electronic transfer of funds?

• A. An in-person cash withdrawal to finance a purchase.
• B. A transfer of funds initiated by electronic means such as ACH, ATM, electronic terminals, mobile devices, or telephones.
• C. The process of layering with real estate investments.
• D. A transfer of funds solely through cash deposits.

Answer: (B)

Electronic transfer of funds means a transaction that is started through electronic channels rather than by handing over cash. It includes transfers initiated by electronic means such as ACH, ATM, electronic terminals, mobile devices, or telephones. This description matches the idea of moving money through electronic systems and devices. The other options describe cash-based activities or money-laundering techniques that do not define an electronic transfer: an in-person cash withdrawal uses cash, cash deposits are cash-based, and layering with real estate investments is a laundering technique rather than an electronic transfer.

Electronic transfer of funds means a transaction that is started through electronic channels rather than by handing over cash. It includes transfers initiated by electronic means such as ACH, ATM, electronic terminals, mobile devices, or telephones. This description matches the idea of moving money through electronic systems and devices. The other options describe cash-based activities or money-laundering techniques that do not define an electronic transfer: an in-person cash withdrawal uses cash, cash deposits are cash-based, and layering with real estate investments is a laundering technique rather than an electronic transfer.