In April Lillian Redmond, the teller supervisor for First National Bank, discovers five counterfeit $20 bills in several teller drawers. In May and in June she discovers two additional counterfeit $20 bills. She has no knowledge of criminal activity on the part of any of the bank's employees or customers. She does not suspect any particular person in this transaction. Which of the following statements is true?
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A. B. C. D.C
The Bank Secrecy Act (BSA) requires financial institutions to assist in the detection and prevention of money laundering and other criminal activities. One of the key requirements under the BSA is the filing of Suspicious Activity Reports (SARs) by financial institutions whenever they detect any suspicious activity. SARs are used by law enforcement agencies to identify potential criminal activity, and they must be filed whenever a financial institution detects any suspicious transaction or pattern of transactions.
In the given scenario, Lillian Redmond, the teller supervisor for First National Bank, has discovered counterfeit $20 bills in several teller drawers on several occasions. As per the BSA regulations, Ms. Redmond must report these incidents on a SAR.
Option A, which states that Ms. Redmond must report the counterfeit funds on a SAR and name the most likely individual(s) on the report, is incorrect. The BSA regulations do not require financial institutions to name individuals suspected of engaging in suspicious activity on the SAR. Financial institutions are only required to provide as much information as possible about the suspicious activity, including any identifying information about the parties involved.
Option B, which states that Ms. Redmond must report the counterfeit funds on a SAR but is not required to name any individual(s) on the report, is correct. Ms. Redmond must report the incidents of counterfeit funds on a SAR, but she is not required to name any individual(s) suspected of engaging in the suspicious activity.
Option C, which states that Ms. Redmond need not file a SAR on this incident because the total amount is less than $25,000, is incorrect. The total amount of the counterfeit funds detected is not the determining factor for filing a SAR. Suspicious activity must be reported regardless of the amount involved.
Option D, which states that Ms. Redmond need not report this incident on a SAR because each incident is less than $5,000, is incorrect for the same reason as Option C. The amount of each incident is not the determining factor for filing a SAR.
In conclusion, Option B is the correct answer. Ms. Redmond must report the incidents of counterfeit funds on a SAR but is not required to name any individual(s) suspected of engaging in the suspicious activity.