Trading, Accounts & Prohibited ActsQuestion 266 of 398
A firm notices a customer making a pattern of transactions that appear designed to hide the source of funds, with no apparent lawful business purpose. Which report is most appropriate?
a.A Currency Transaction Report (CTR) only
b.A Form 10-K
c.A Suspicious Activity Report (SAR)
d.A dividend disbursement notice
Explanation
A Suspicious Activity Report (SAR) is filed when a firm detects transactions that appear to involve money laundering, have no apparent lawful purpose, or are otherwise suspicious (generally at or above a dollar threshold). Firms must not 'tip off' the customer that a SAR was filed.
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