Which transaction should result in a suspicious activity report filing?

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 of
• CA national food-chain restaurant makes multiple, anticipated cash transactions that are above the
• DA national food-chain restaurant with multiple cash transactions at various branch locations.

• A
  85% (33)
• B
  5% (2)
• C
  3% (1)
• D
  8% (3)

Explanation

Suspicious Activity Reporting (SAR) Requirements, a Suspicious Activity Report (SAR) filing is required when a financial institution is aware of, or suspects, a possible violation of law or regulation, or any other suspicious activity related to money laundering, terrorist financing, or other unlawful activity. In this case, Answer A would require a Suspicious Activity Report filing as the deposits are made on a daily basis without providing a legitimate purpose. According to the Financial Crimes Enforcement Network's (FinCEN) guidance, one example of a suspicious transaction is "frequent deposits of cash or monetary instruments in amounts under $10,000 to the same account, or a pattern of such deposits, unless the financial institution has a reasonable explanation for the pattern."

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