Under the best practices listed in the Financial Action Task Force (FATF) Recommendations concerning large cash transactions with customers, which of the following transactions would require a report to be filed with the government?
A.
A domestic credit card purchase of a piece of jewelry above the jurisdiction's designated threshold
B.
A lump-sum cash deposit to a bank above the jurisdiction's designated threshold
C.
An international purchase of a small boat with a lump-sum cash payment below the jurisdiction's designated threshold
D.
A cash payment to a restaurant supplier for restaurant supplies above the jurisdiction's designated threshold
Answer is B, because - FATF guidelines specifically require reporting of large cash transactions (deposits, withdrawals, etc.) above a designated threshold to prevent money laundering and other illicit activities.
If someone deposits a large sum of cash into a bank account, the bank is usually required to file a report (often called a Suspicious Activity Report or Cash Transaction Report) with the appropriate government authority.
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raochavan
1 month ago