Final answer:
William is protected from legal action if he files a suspicious transaction report in good faith. This protection is part of the anti-money laundering laws, which require financial professionals to report suspicious activities to regulatory bodies such as FINTRAC honestly and without malice.
Step-by-step explanation:
William, as a new insurance agent, is concerned about the potential consequences of reporting a suspicious client transaction. The correct response to William's concern is that he is protected against any legal action if the suspicious transaction report is filed in good faith. In the context of anti-money laundering laws, financial industry professionals like William are typically required to report suspicious transactions to regulatory bodies such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). These laws offer protection to individuals who report suspicions honestly, and there are specific channels and protocols for submitting these reports. Reporting in good faith means William has an honest belief that the transaction is suspicious. Therefore, answer d is correct. As for libel, it isn’t applicable in this scenario as long as William's actions are not malicious and he doesn't knowingly submit a false report.