Certified Regulatory Compliance Manager (CRCM) — Question 218

The manager of Main Street branch calls and relates the following information: John Smith purchased a cashier's check for $1,000 cash at 10:00 a. m. on
Tuesday. At 11:30 a. m. Mr. Smith returned and purchased a cashier's check for $2,500 cash and deposited traveler's checks totaling $9,000 into his checking account. At 4:00 p.m. Mr. Smith returned and deposited $8,000 cash into his checking account. This deposit was after normal banking hours, so it was recorded as of Wednesday's business date. What action should the bank take?

Answer options

• A. None, because no single cash transaction exceeded $10,000
• B. File a Currency Transaction Report (CTR) for $11,500
• C. Record the $1,000, $2,500, and $9,000 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold
• D. Record the $1,000 and $2,500 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold

Correct answer: D

Explanation

The correct answer is D because the combined total of the cashier's checks purchased by Mr. Smith ($1,000 and $2,500) exceeds the $3,000 threshold, necessitating a record in the bank's monetary instrument sales log. Options A and B are incorrect since they do not address the requirement for logging the monetary instruments, and option C incorrectly includes the traveler's checks, which do not count towards the monetary instrument sales log threshold.