Regulations & ConductQuestion 116 of 125
A Suspicious Activity Report (SAR) is filed by a firm when:
a.A customer earns a large profit
b.A transaction appears to involve possible money laundering or has no apparent lawful purpose
c.A customer opens a retirement account
d.A dividend is paid
Explanation
Firms must file a Suspicious Activity Report when they detect transactions that appear to involve funds from illegal activity, are designed to evade reporting requirements, or have no apparent business or lawful purpose. Firms generally may not notify the customer that a SAR has been filed (no tipping off).
Law Reference: Bank Secrecy ActPractice all 125 questions free — no signup required.
Related questions on this topic
- Under FINRA rules, communications with the public are generally categorized as:
- A registered representative's communications with the public must be:
- Under anti-money laundering (AML) rules, a Currency Transaction Report (CTR) must generally be filed for cash transactions exceeding:
- Which of the following is a prohibited practice for a registered representative?
- 'Churning' refers to:
- Commingling a customer's funds or securities with the firm's own assets is:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Series 7 General Securities Representative Exam · How we review