Final answer:
Broker-dealers must gather information on any transfer of funds to comply with regulations and prevent fraudulent activities.
Step-by-step explanation:
Broker-dealers (BDs) who handle wire transfers must collect information on any transfer of funds. This is part of a regulatory requirement to prevent money laundering and other fraudulent activities. When referencing to a money transfer, as in the provided example, a person might pay a fee to wire money from one account to another. While this fee facilitates the transaction, it is not indicative of money creation; rather, it shows the cost incurred to move the larger sum. If the original account (account A) is not the property of the person making the transfer, the complexity of the transaction becomes evident, highlighting the importance of BDs collecting proper information on fund transfers.
When it comes to wire transfers, banks and financial institutions (BDs) need to collect information about any transfer of funds. This includes details such as the amount being transferred, the sender's and recipient's account information, and sometimes the purpose of the transfer. Collecting this information helps ensure the security and legality of the transfer, as it allows for traceability and compliance with regulations.