Federal Mortgage LawsQuestion 92 of 400
Which of the following best describes 'structuring' as a red flag under anti-money laundering rules?
a.Buying flood insurance in installments
b.Refinancing to a lower rate
c.Breaking a large cash transaction into smaller amounts to evade reporting thresholds
d.Paying off a loan early
Explanation
Structuring means deliberately breaking up a large currency transaction into multiple smaller transactions to keep each one below the reporting threshold and avoid triggering a Currency Transaction Report. It is a recognized money-laundering red flag and is itself a federal crime. Legitimate activities like refinancing or early payoff are not structuring.
Law Reference: Bank Secrecy Act / Anti-Money Laundering (FinCEN rules)Practice all 400 questions free — no signup required.
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