Series 79 practice questionmediumAnti-Money Laundering in IB Context
Which of the following is most likely to trigger a Suspicious Activity Report (SAR) filing by an investment bank under FINRA rules?
- AA client requests duplicate statements sent to a CPA
- BA client attempts to structure a wire transfer to avoid AML reporting thresholds✓ Correct answer
- CA client provides audited financial statements upon request
- DA client executes a standard M&A transaction with clear beneficial ownership
Explanation
Why B — A client attempts to structure a wire transfer to avoid AML reporting thresholds
Structuring transactions to avoid AML reporting thresholds is a classic red flag and requires a SAR filing. The other scenarios involve ordinary business practices that do not typically trigger suspicion.
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