Question

Currency Transaction Reports mandated by Anti-Money Laundering rules require a report to be filed in which of the following situations?

A) Throughout the course of the trading day, an investor performs several cash transactions in his account which total $12,000.
B) Activities in a customer's account involve a cashier's check in the amount of $3,000 and cash transactions in the account of $8,000.
C) Activities in a customer's account involve a personal check in the amount of $1,500 and cash transactions in the account of $7,000.
D) In one transaction, a customer performs a cash transaction totaling over $9,000.

Answer 1

Answer: A - Throughout the course of the trading day, an investor performs several cash transactions in his account which total $12,000.

Explanation: Currency Transaction Reports mandated by Anti-Money Laundering rules require a report to be filed when any of the below stated transactions occur in an account.

1. If the daily aggregate cash transactions of an individual exceeds $10,000

2. if 2 different transactions within a 12 months period seems related and their aggregate exceeds $10,000 must be reported.

3. Any suspicious customers action that suggest that they are laundering money or otherwise violating federal criminal laws and committing wire transfer fraud, check fraud, or mysterious disappearances should be reported