CAMS · Question #145
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior…
The correct answer is D. Document reasons for not filing a suspicious transaction report. The decision of whether or not to file a suspicious transaction report (also known as a suspicious activity report or SAR in the United States) often involves weighing the aggravating and mitigating factors arising from the research conducted during the investigative process…
Question
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history. When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale. Which of the following should the compliance officer do next?
Options
- AInvestigate these unusual transactions further.
- BContact the local Financial Intelligence Unit for advice.
- CFile a suspicious transaction report with the competent authorities.
- DDocument reasons for not filing a suspicious transaction report.
How the community answered
(32 responses)- A3% (1)
- B6% (2)
- C9% (3)
- D81% (26)
Explanation
The decision of whether or not to file a suspicious transaction report (also known as a suspicious activity report or SAR in the United States) often involves weighing the aggravating and mitigating factors arising from the research conducted during the investigative process. The final decision should be documented and supported by the reasoning that was used to make the determination. The transaction has already been investigated which led to the requesting of the document. The document checked out and the question did not specify the document was suspicious, therefore we can conclude an STR does not need to be completed and thus should move to document the reason why an STR wasn't completed.
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