Certified Regulatory Compliance Manager (CRCM) — Question 212

Fastfood, Inc., a nationwide restaurant chain, opened an account at First National Bank last year. Fastfood is making daily deposits in amounts of $15,000 to
$20,000. First National needs to determine if this company is an exempt person. What should the bank do first?

Answer options

• A. Because the restaurant is an established depositor, the bank should provide an unlimited exemption for cash deposits and withdrawals.
• B. The bank should look in the newspaper or on the Internet to determine if Fastfood, Inc's, stock appears on one of the listed exchanges.
• C. The bank should ask the company if it qualifies as a listed business.
• D. The bank should perform a corporate records check to determine if the company is chartered in the United States.

Correct answer: B

Explanation

The correct answer is B because reviewing stock listings is a key method to determine if the company qualifies as an exempt person. Option A is incorrect since exemptions are not automatically granted based solely on established depositor status. Option C is also not the first step; direct verification of stock status provides more immediate clarity, and Option D does not specifically address the exemption criteria at this stage.