SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 13: Answer and Explanation

Question: 13

Which of the following reports is to be submitted by a financial firm to the FinCEN within thirty days of observing a person's suspicious action?

• A. Suspicious Activity Report
• B. Currency Transaction Report
• C. OFAC Report
• D. Customer Account Statement

Correct Answer: A

Explanation:

A: Choice A must be submitted when a person takes an action that is suspicious. If something suspicious occurs, but a suspect is not identified, another thirty days may be used to research the situation, in order to identify a suspect. Choice B is prepared by a bank official when a customer asks to complete a transaction greater than $10,000. Choice C refers to the Office of Foreign Asset Control (OFAC), which maintains a Specially Designated Nationals and Blocked Persons List (SDNs), against which new customer's names are compared. Choice D refers to statements that are provided to the customer at least once every calendar quarter.