A routine review of account records reveals that suspicious activity involving foreign currency has occurred in the account of one of the bank's directors. Which of the following actions should be taken FIRST?
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A. B. C. D.A
When suspicious activity involving foreign currency is identified in the account of one of the bank's directors, the bank must take immediate action to investigate and address the issue. The first action that should be taken in such a scenario is to file a Suspicious Activity Report (SAR).
Option A is the correct answer because filing a SAR is the first step in the process of identifying and reporting suspicious activity to the appropriate regulatory agencies. SARs are required by law and should be filed as soon as possible after the suspicious activity is detected. The SAR should contain a detailed description of the activity, as well as any supporting documentation or evidence that the bank has gathered.
Option B may be a valid action to take at some point, but it should not be the first action. The board of directors should be made aware of the situation and may need to discuss the activity further, but this should only occur after the bank has filed a SAR and taken other necessary steps.
Option C is not the correct answer because it could potentially compromise the investigation by alerting the director and giving them an opportunity to cover up or further conceal any suspicious activity.
Option D is not the correct answer because filing a Currency Transaction Report (CTR) is not the appropriate action when suspicious activity has been detected. CTRs are used to report large cash transactions, not suspicious activity involving foreign currency.