The globalization of financial-services companies has been a boon to money launders, because
of allowing money placed in a bank in a less regulated jurisdiction to be transferred to a branch in a more regulated one.
A. of allowing money placed in a bank in a less regulated jurisdiction to be transferred - BECAUSE + OF must be followed by a noun only . Since we're discussing the action of allowing the transfer of money, we shouldn't use OF .
B. of allowing the transfer of money placed in a bank in a less regulated jurisdiction - Same as A
C. it allows that money placed in a bank in a less regulated jurisdiction is transferred - It is used primarily in the context of acknowledgment/belief: "I allow that she is very accomplished" = I admit or acknowledge.
If it's used in the context of permission, it must be used in the command subjunctive:
"... it allows that money... BE transferred..." rather than "is transferred." C is therefore incorrect.
D. it allows the transfer of money have been placed in a bank in a less regulated jurisdiction - subject-verb agreement issue - the transfer needs HAS
E. it allows money placed in a bank in a less regulated jurisdiction to be transferred - Correct
Answer E
BECAUSE + [no preposition] will be followed by an action - a clause. Compare these two:
I couldn't play kickball
because of my sprained
ankle.
I couldn't play kickball
because I sprained my ankle.
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When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long