An individual comes into the bank and makes a $6,000 cash deposit into a checking account. At the same time, the individual buys a $7,000 cashier's check with cash. According to the Bank Secrecy Act, what is the bank is required to do?
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A. B. C. D.D
The Bank Secrecy Act (BSA) is a federal law that requires financial institutions to assist in the prevention, detection, and prosecution of money laundering activities. The BSA requires banks to maintain records of cash transactions and to report certain transactions to the Financial Crimes Enforcement Network (FinCEN).
In the scenario given, an individual has made a $6,000 cash deposit into a checking account and has also purchased a $7,000 cashier's check with cash. The bank must determine what actions are required under the BSA.
Option A, filing a Suspicious Activity Report (SAR) for $13,000 is not the correct answer as SARs are filed for transactions that are suspected to be related to illicit activity. Based on the information provided, there is no indication that the transaction is suspicious.
Option B, filing a Currency Transaction Report (CTR) for the $6,000 cash deposit is not sufficient as it does not address the purchase of the $7,000 cashier's check.
Option C, aggregating the transactions and retaining information about the purchase of the cashier's check is partially correct. According to the BSA, when multiple transactions by or on behalf of a person total more than $10,000 in a single business day, the bank must aggregate the transactions and record certain information about each transaction. The bank must retain information about the purchase of the cashier's check, but it must also file a CTR for the total cash-in transaction of $13,000.
Option D, obtaining the recordkeeping information for the purchase of the cashier's check and completing a CTR for the total cash-in transaction of $13,000 is the correct answer. The bank must obtain and retain certain recordkeeping information for the purchase of the cashier's check, such as the name and address of the purchaser, and file a CTR for the total cash-in transaction of $13,000.
In conclusion, the correct answer is D, obtain the recordkeeping information for the purchase of the cashier's check and complete a CTR for the total cash-in transaction of $13,000.