A quarterly review is conducted on a retail customers account at a bank located in a jurisdiction with
currency reporting thresholds. A number of large deposits of financial instruments drawn on other
institutions in amounts under thresholds were noted. This activity did not fit the accounts historical
profile. A suspicious transaction report will most likely be filed if what also occurred?
B
Explanation:
"Laundering risks and ways laundering can occur through vehicle sellers include structuring cash
deposits below the reporting threshold or purchasing vehicles with sequentially numbered checks or
money orders"
C. Four deposits were made during this period that exceeded the thresholds
In the given scenario, a suspicious transaction report is most likely to be filed if four deposits were made during the review period that exceeded the currency reporting thresholds (Option C). Large deposits of financial instruments under the thresholds, especially when they deviate from the account's historical profile, can be considered suspicious. If these deposits individually or cumulatively exceed the reporting thresholds, it may trigger the filing of a suspicious transaction report (STR) to the relevant authorities in accordance with anti-money laundering (AML) regulations.
B. The deposited financial instruments were sequentially numbered