Federal Mortgage LawsQuestion 53 of 400
A borrower asks a loan officer directly whether the company filed a Suspicious Activity Report about his transaction. What is the loan officer permitted to do under the Bank Secrecy Act?
a.Confirm the SAR was filed but not share its contents
b.Tell the borrower only if a supervisor approves
c.Read the SAR aloud to reassure the borrower
d.Neither confirm nor deny that a SAR was filed
Explanation
The BSA imposes strict confidentiality: no person involved may disclose to any party involved in the transaction that a SAR has been filed or even considered. This 'no tipping off' rule protects investigations. Disclosing the existence of a SAR is itself a federal violation.
Law Reference: Bank Secrecy Act / Anti-Money Laundering (FinCEN rules)Practice all 400 questions free — no signup required.
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