Which transaction should result in a SAR/STR filing?

The correct answer is A. A small business owner deposits checks totaling $9,950 USD on a daily basis without providing a. Ref This transaction should result in a SAR/STR filing because it indicates possible structuring, which is a form of money laundering that involves breaking down large amounts of cash into smaller deposits to avoid detection or reporting requirements. Structuring is often done to

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Question

Options

AA small business owner deposits checks totaling $9,950 USD on a daily basis without providing a
BA small business owner deposits $25,000 USD in cash proceeds with a business equipment bill
CA national food-chain restaurant with multiple cash transactions at various branch locations.
DA national food-chain restaurant makes multiple, anticipated cash transactions that are above the

How the community answered

(35 responses)

A
77% (27)
B
14% (5)
C
3% (1)
D
6% (2)

Explanation

Ref This transaction should result in a SAR/STR filing because it indicates possible structuring, which is a form of money laundering that involves breaking down large amounts of cash into smaller deposits to avoid detection or reporting requirements. Structuring is often done to conceal the source or destination of illicit funds, or to evade taxes, regulations, or sanctions. A small business owner who deposits checks just below the $10,000 USD threshold on a daily basis without providing a legitimate purpose raises a red flag for suspicious activity and should be reported to the relevant Financial Intelligence Unit.

Topics

#SAR/STR filing#structuring#suspicious activity reporting#threshold avoidance

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