Accounting/Business Law class 5. The same customer comes into a bank each day an
ID: 2448897 • Letter: A
Question
Accounting/Business Law class
5. The same customer comes into a bank each day and purchases $8,000 worth of traveler's checks. The bank employees suspect that the customer may be engaged in money laundering activity. The bank:
Is required to file a Currency Transaction Report since there were multiple transactions
Cannot report these activities since each transaction is less than $10,000
May, but is not required to, file a Suspicious Activity Report
Is required to file a Suspicious Activity Report
Explanation / Answer
Yes, he is required to filed a suspicious activity report.
A Suspicious Activity Report (SAR) is a document that financial institutions must file with the Financial Crimes Enforcement Network (FinCEN) following a suspected incident of money laundering or fraud. These reports are required under the United States Bank Secrecy Act (BSA) of 1970
As there may be chances that the customer is engaged in the money laundering which is against law, the Suspicious Activity Report should be filed.