CAMS · Question #833
A compliance officer at a large bank has been tasked with investigating a series of unusual transactions involving a long-time customer. The customer has made several large cash deposits into…
The correct answer is D. Draft a SAR that includes a detailed chronology of the transactions, customer background and the. Once there is reasonable suspicion of money laundering, the next critical step is to draft and file a suspicious activity report (SAR) with the relevant financial intelligence unit within the required regulatory timeframe. The SAR should contain a clear chronology of…
Question
A compliance officer at a large bank has been tasked with investigating a series of unusual transactions involving a long-time customer. The customer has made several large cash deposits into multiple accounts within a short period, raising red flags. After gathering and analyzing transaction data, reviewing customer records, and cross-referencing external sources, the compliance officer determines that there is a reasonable suspicion of money laundering. As part of documenting this investigation, the compliance officer must decide how and when to escalate the matter internally and whether to file a suspicious activity report (SAR). What is the next critical step in this process?
Options
- ADocument the customer's transaction history and keep the investigation confidential until further
- BImmediately escalate the case to senior management, recommending the closure of the
- CReport the investigation to external auditors and await further guidance before taking any action.
- DDraft a SAR that includes a detailed chronology of the transactions, customer background and the
How the community answered
(61 responses)- A10% (6)
- B7% (4)
- C3% (2)
- D80% (49)
Explanation
Once there is reasonable suspicion of money laundering, the next critical step is to draft and file a suspicious activity report (SAR) with the relevant financial intelligence unit within the required regulatory timeframe. The SAR should contain a clear chronology of transactions, relevant customer details, and the rationale for suspicion to support potential investigation by authorities.
Topics
Community Discussion
No community discussion yet for this question.