A branch manager for a small community bank has a new customer who deposits four EUR 50,000 checks into one account. Shortly thereafter, the customer goes to another branch and asks to transfer all but EUR 1,500 to three accounts in different foreign jurisdictions.
Which suspicious activity should be the focus of the suspicious transaction report?
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A. B. C. D.B
The suspicious activity that should be the focus of the suspicious transaction report is the customer's request to transfer almost all of the funds out of the account to three different foreign jurisdictions.
This transaction raises several red flags that suggest potential money laundering activity. First, the customer deposited four large checks into one account, which could indicate an attempt to layer funds by breaking up a larger sum of money into smaller amounts to avoid detection. Second, the customer quickly transferred almost all of the funds out of the account to different foreign jurisdictions, which could suggest an attempt to move funds outside of the country to avoid detection or confiscation. Third, the amount of money transferred is significant, which could suggest an attempt to move illicit funds or profits from criminal activity.
The fact that the customer went to a different branch to make this transaction and opened the account with four large checks are also noteworthy, but they do not necessarily indicate suspicious activity on their own. Therefore, options A and B can be ruled out as the focus of the suspicious transaction report.
In conclusion, option C is not as suspicious as option D in terms of money laundering activity, and therefore, the focus of the suspicious transaction report should be on the customer's request to transfer almost all of the funds out of the account to three different foreign jurisdictions.