Which of the following businesses would be eligible to be an exempt person under the requirements of the Bank Secrecy Act?
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A. B. C. D.C
Under the Bank Secrecy Act (BSA), exempt persons are those who are not required to comply with certain reporting and recordkeeping requirements under the BSA. An exempt person is typically a business that has a low risk of being used for money laundering or terrorist financing.
To determine which business would be eligible to be an exempt person under the BSA, we need to consider the nature of the business and the level of risk associated with it. Let's take a look at each business in the given options:
A. Jackson's Used Cars A used car dealership typically involves a significant amount of cash transactions, which could make it an attractive target for money laundering. Therefore, it is unlikely that Jackson's Used Cars would qualify as an exempt person under the BSA.
B. Evanston Recreational Boats Boat dealerships may also be vulnerable to money laundering due to the high value of boats and the potential for cash transactions. However, recreational boats are generally not considered a high-risk industry. Therefore, Evanston Recreational Boats may be eligible to be an exempt person under the BSA.
C. Al Williams Seafood Restaurant Restaurants may be vulnerable to money laundering through cash transactions, but seafood restaurants are not generally considered high-risk. Therefore, Al Williams Seafood Restaurant may be eligible to be an exempt person under the BSA.
D. Goldsmith Aircraft Distributors Aircraft distributors often involve high-value transactions, making them a potential target for money laundering. Therefore, Goldsmith Aircraft Distributors is unlikely to qualify as an exempt person under the BSA.
In summary, based on the given options, it is most likely that Evanston Recreational Boats and Al Williams Seafood Restaurant would be eligible to be exempt persons under the requirements of the Bank Secrecy Act.