On which of the following loans must a bank maintain records under the Bank Secrecy Act?
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A. B. C. D.D
The Bank Secrecy Act (BSA) is a federal law that requires financial institutions, including banks, to maintain certain records and reports related to customer transactions and activity in order to combat money laundering, terrorist financing, and other financial crimes.
Regarding the question, the correct answer is (D) All loans exceeding $10,000, but not secured by real property.
The BSA requires banks to maintain records of certain types of transactions, including loans that exceed a certain amount. Specifically, banks must maintain records of all extensions of credit in excess of $10,000 that are not secured by real property or a lien on real property.
This means that if a bank extends a loan to a customer for an amount greater than $10,000 and the loan is not secured by real property (such as a home or land), the bank must maintain records of the transaction in accordance with the BSA.
It's worth noting that banks must also comply with other requirements under the BSA, such as filing Currency Transaction Reports (CTRs) for cash transactions over $10,000 and Suspicious Activity Reports (SARs) when they suspect a transaction may be related to illegal activity.
In summary, under the Bank Secrecy Act, banks must maintain records of all loans exceeding $10,000 that are not secured by real property or a lien on real property.