RegulationsQuestion 66 of 110
When a firm files a Suspicious Activity Report on a customer's transactions, the firm:
a.Must not notify the customer that a SAR was filed
b.Must give the customer a copy within 10 business days
c.May notify the customer only with the customer's written consent
d.Must close the account immediately
Explanation
Tipping off a customer about a SAR filing is prohibited because it would compromise any resulting investigation. SARs generally apply to suspicious transactions of $5,000 or more and are filed with FinCEN, typically within 30 days of detection. Filing does not automatically require closing the account, though the firm may choose to do so.
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