Mammoth Enterprises is a new customer to the bank. It is a wholly owned subsidiary of Mammoth Corporation. Which of the following statements, if true, would make Mammoth Enterprises an exempt customer at the bank?
A.
Mammoth Corporation is a London corporation, trading on the London Stock Exchange.
B.
Mammoth Corporation is a U.S. corporation with unlisted stock.
C.
Mammoth Corporation is a U.S. corporation trading on the American Stock Exchange.
D.
Mammoth Enterprises is a U.S. corporation primarily in the investment banking business.
The correct answer is C. Mammoth Corporation is a U.S. corporation trading on the American Stock Exchange. Under the Bank Secrecy Act (BSA) regulations, a wholly owned subsidiary of a parent corporation that is a U.S. corporation trading on a recognized stock exchange (such as the American Stock Exchange) can qualify as an exempt customer. This exemption is based on the parent corporation's status, which implies that its financial activities are subject to regulatory oversight and public scrutiny, reducing the risk of money laundering or other illicit activities that the BSA aims to prevent.
upvoted 1 times
...
Log in to ExamTopics
Sign in:
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.
Upvoting a comment with a selected answer will also increase the vote count towards that answer by one.
So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
Cam22
4 months ago