In reviewing recent activity, a compliance officer for a money transmitter that several customers are each remitting the same amount of money but much more frequently. How should the institution…

The correct answer is C. Conduct further investigation to determine whether this is truly suspicious activity. 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…

Conducting and Responding to Investigations

Question

In reviewing recent activity, a compliance officer for a money transmitter that several customers are each remitting the same amount of money but much more frequently. How should the institution respond?

Options

AFile a suspicious transaction report
BInstruct the tellers not to process remittances for these customers in the future
CConduct further investigation to determine whether this is truly suspicious activity
DImmediately contact the customers and ask them why they are remitting money more often

How the community answered

(49 responses)

A
6% (3)
B
16% (8)
C
73% (36)
D
4% (2)

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. Financial institutions should draft procedures that document the factors to consider when determining whether a suspicious transaction report (STR) is appropriate.

Topics

#transaction monitoring#money transmitter#remittance patterns#investigation triggers

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