False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False