According to the Financial Action Task Force (FATF) methodology, which situations would require a financial institution (FI) to consider filing a Suspicious Activity Report (SAR)?

The correct answer is A. A FI is unable to verify the relevant customer due diligence (CDD) documents. A Suspicious Activity Report (SAR) is required when a financial institution detects activity that raises suspicion of money laundering, terrorist financing, or fraud. Option A (Correct): Inability to verify customer identification documents is a red flag for potential financial…

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

Options

AA FI is unable to verify the relevant customer due diligence (CDD) documents.
BA beneficiary of a transaction is a politically exposed person (PEP).
CA FI identifies the payer as a dealer in precious metals or stones.
DA transaction involves funds exchanged from crypto to fiat currencies.

How the community answered

(46 responses)

A
80% (37)
B
11% (5)
C
2% (1)
D
7% (3)

Explanation

A Suspicious Activity Report (SAR) is required when a financial institution detects activity that raises suspicion of money laundering, terrorist financing, or fraud. Option A (Correct): Inability to verify customer identification documents is a red flag for potential financial crime and may require reporting to the Financial Intelligence Unit (FIU).

Topics

#SAR filing triggers#FATF methodology#CDD failure#suspicious activity reporting

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