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Difficulty: MediumDepartment of the Treasury and IRS Regulatory Roles

A registered representative receives a deposit of $12,000 in physical cash from a retail customer to fund a new brokerage account. The firm must submit a Currency Transaction Report (CTR) to comply with Bank Secrecy Act provisions. Which bureau of the U.S. Department of the Treasury receives and processes these Anti-Money Laundering (AML) filings?

  1. Financial Crimes Enforcement Network (FinCEN)Answer
  2. B
    Internal Revenue Service (IRS)
  3. C
    Office of Foreign Assets Control (OFAC)
  4. D
    Securities and Exchange Commission (SEC)

Answer

Financial Crimes Enforcement Network (FinCEN)
The Financial Crimes Enforcement Network (FinCEN) is the designated bureau of the U.S. Department of the Treasury responsible for collecting and analyzing information about financial transactions to combat domestic and international money laundering, terrorist financing, and other financial crimes. CTRs required under the Bank Secrecy Act are submitted directly to FinCEN.

Step-by-Step Solution

1
Identify the transaction type and threshold requirement
A physical cash deposit exceeding $10,000 triggers a mandatory Currency Transaction Report (CTR) under Bank Secrecy Act (BSA) rules.
Federal anti-money laundering laws require reporting of currency deposits over $10,000 in a single business day.
2
Determine the designated regulatory authority for BSA filings
The Financial Crimes Enforcement Network (FinCEN) is the primary Treasury bureau tasked with collecting and analyzing BSA data.
FinCEN serves as the U.S. Financial Intelligence Unit responsible for receiving CTRs and Suspicious Activity Reports (SARs).

Key Concept

FinCEN Regulatory Authority and BSA Reporting Roles
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Topics

Department of the Treasury and IRS Regulatory Roles

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