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Page 9
Page 9
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.
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.
A.
True
B.
False