SIE practice questionhardAccount Types – Anti-Money Laundering
What is a broker-dealer's obligation if suspicious activity is detected in a retirement account?
- AClose the account immediately
- BFreeze the account indefinitely
- CNotify only the account owner
- DFile a Suspicious Activity Report (SAR)✓ Correct answer
Explanation
Why D — File a Suspicious Activity Report (SAR)
Firms must file a Suspicious Activity Report (SAR) with the government if suspicious activity is found—regardless of account type. Freezing or closing is not always required and notifying owners alone is insufficient.
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