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Question

Difficulty: EasyAnti-Money Laundering (AML), KYC, and Sanctions Compliance

Match each anti-money laundering (AML) and compliance requirement with its correct regulatory threshold or timeline.

  • Currency Transaction Report (CTR)Triggered by currency (cash) deposits or withdrawals exceeding $10,000 in a single business day
  • Suspicious Activity Report (SAR)Triggered by suspicious transactions involving funds or assets of at least $5,000
  • SAR Filing DeadlineMust be submitted to FinCEN within 30 calendar days of initial detection of the suspicious activity
  • OFAC SDN List Match ActionRequires immediate blocking of account assets and reporting to OFAC within 10 business days

Answer

Currency Transaction Reports (CTRs) correspond to physical cash transactions exceeding 10,000.SuspiciousActivityReports(SARs)correspondtotransactionsinvolving10,000. Suspicious Activity Reports (SARs) correspond to transactions involving 5,000 or more with suspected illegal activity. The SAR filing deadline is within 30 calendar days of initial detection. An OFAC SDN List match requires immediate asset blocking and reporting within 10 business days.
Each regulatory report and compliance action serves a distinct purpose under federal law: Currency Transaction Reports (CTRs) monitor physical cash transactions over 10,000;SuspiciousActivityReports(SARs)monitorsuspicioustransactionsof10,000; Suspicious Activity Reports (SARs) monitor suspicious transactions of 5,000 or more and carry a 30-calendar-day filing deadline; OFAC sanctions enforcement demands immediate asset blocking and formal reporting within 10 business days.

Step-by-Step Solution

1
Identify the threshold for currency transaction reporting
CTRs apply to cash transactions over $10,000 in a single day
The Bank Secrecy Act requires tracking large physical currency movements regardless of suspicion.
2
Identify the monetary threshold and filing timeline for suspicious activity reporting
SARs apply to suspicious activity of $5,000 or more and must be filed within 30 calendar days
FinCEN regulations mandate reporting suspicious conduct meeting the $5,000 trigger within 30 days of detection.
3
Identify the compliance obligation for sanctions screening under OFAC
SDN list matches mandate immediate freezing of assets and notification to OFAC within 10 business days
Federal sanctions regulations require strict asset blocking to prevent prohibited transactions.

Key Concept

Anti-Money Laundering (AML) Reporting Thresholds and Sanctions Compliance
Estimated Time:1m 30s
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Topics

Anti-Money Laundering (AML), KYC, and Sanctions Compliance