Mammoth Enterprises: Exempt Customer Criteria

C

The term "exempt customer" refers to a customer that is exempt from certain requirements under the Bank Secrecy Act (BSA) regulations, specifically those related to customer identification, beneficial ownership, and suspicious activity reporting. In order to qualify for this exemption, the customer must meet certain criteria specified by the BSA regulations.

One of the criteria for exempt customers is that they must be a subsidiary of a publicly traded company that is registered with the Securities and Exchange Commission (SEC). Therefore, in order for Mammoth Enterprises to be an exempt customer at the bank, Mammoth Corporation must be a publicly traded company registered with the SEC.

Of the answer choices provided, option C is the only one that indicates that Mammoth Corporation is a publicly traded company. Therefore, if Mammoth Corporation is a U.S. corporation trading on the American Stock Exchange, Mammoth Enterprises would be an exempt customer at the bank.

Option A states that Mammoth Corporation is a London corporation trading on the London Stock Exchange, which does not indicate that it is registered with the SEC, so this option would not make Mammoth Enterprises an exempt customer.

Option B states that Mammoth Corporation is a U.S. corporation with unlisted stock, which means that it is not publicly traded and therefore not registered with the SEC. This option would also not make Mammoth Enterprises an exempt customer.

Option D states that Mammoth Enterprises is a U.S. corporation primarily in the investment banking business, which is not relevant to determining whether it qualifies as an exempt customer under the BSA regulations.

In summary, the correct answer is option C: Mammoth Corporation is a U.S. corporation trading on the American Stock Exchange.