Loans Requiring Records

D

Under the Bank Secrecy Act (BSA), banks are required to maintain records of certain transactions to help detect and prevent money laundering and other financial crimes. One type of transaction that banks must keep records of is loans.

The correct answer to the question is D. All loans exceeding $10,000, but not secured by real property.

This means that if a bank makes a loan to a customer that is not secured by real property (such as a house or land), and the loan amount is greater than $10,000, the bank must maintain records of the transaction.

It's important to note that the BSA requires banks to maintain records of many other types of transactions as well, such as cash deposits and withdrawals, wire transfers, and purchases of monetary instruments (such as traveler's checks or money orders). The specific recordkeeping requirements can vary depending on the type of transaction and the amount involved.

Overall, the goal of the BSA recordkeeping requirements is to help banks identify and report suspicious activity to the appropriate authorities, such as the Financial Crimes Enforcement Network (FinCEN). By maintaining detailed records of certain transactions, banks can more effectively monitor for potential financial crimes and help protect their customers and the broader financial system.