A compliance officer is constructing a review of a transaction in which M, a deposit account customer, used cash to purchase travelers' checks in an amount of
$4,000. The compliance officer must determine compliance with financial recordkeeping and currency reporting regulations. Which of the following pieces of information must be part of the bank's records for this transaction?
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A. B. C. D.C
In the given scenario, the compliance officer is required to determine compliance with financial recordkeeping and currency reporting regulations. This suggests that the transaction involves cash, and thus, it may trigger certain reporting requirements under the Bank Secrecy Act (BSA) and related regulations.
The BSA requires financial institutions to maintain records of certain transactions and to report certain transactions that exceed certain thresholds to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. The Currency Transaction Report (CTR) is one such report that must be filed for cash transactions over $10,000 in a single business day.
Given that M used cash to purchase travelers' checks in an amount of $4,000, the transaction falls below the $10,000 threshold and therefore, does not trigger a CTR filing requirement. However, the bank is still required to maintain records of the transaction under the BSA's recordkeeping requirements.
Out of the given options, the piece of information that must be part of the bank's records for this transaction is the serial numbers of the travelers' checks purchased (Option C). This information helps the bank identify the specific travelers' checks involved in the transaction and can be useful in case of a future investigation or audit.
M's date of birth (Option A) and deposit account number (Option B) are not directly relevant to this transaction and are not required to be part of the bank's records in this case. The name of the branch where the transaction occurred (Option D) may be useful for internal tracking purposes but is not a mandatory recordkeeping requirement under the BSA.
In summary, the compliance officer must ensure that the bank maintains records of the transaction, which should include the serial numbers of the travelers' checks purchased.