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Exam CFE - Law topic 1 question 5 discussion

Actual exam question from ACFE's CFE - Law
Question #: 5
Topic #: 1
[All CFE - Law Questions]

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
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Suggested Answer: D 🗳️

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raochavan
1 month ago
Selected Answer: B
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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