Series 79 practice questionmediumAnti-Money Laundering in IB Context
A client wires $12,500 in increments under $10,000 each, with no clear business purpose. What regulatory obligation does this most likely trigger for the investment bank?
- AFiling a Form 13F
- BSubmitting a Currency Transaction Report (CTR)
- CFiling a Suspicious Activity Report (SAR)✓ Correct answer
- DNotifying the IRS of the transaction
Explanation
Why C — Filing a Suspicious Activity Report (SAR)
Structuring transactions to avoid reporting thresholds is a red flag and requires a SAR filing. The trap is thinking only large, single transactions trigger reporting, but structured activity also qualifies.
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