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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Anti-Money Laundering & Reporting questions
- Which is NOT a disciplinary action SROs may take against a member firm?
- Under SEC rules, what document must a brokerage firm obtain before opening a new account?
- Which of the following is LEAST likely to be a result of an SRO disciplinary action?
- The Office of Foreign Assets Control (OFAC) maintains a list of individuals and entities subject to economic sanctions.…