Certified Regulatory Compliance Manager (CRCM) — Question 231

Which of the following customers may be exempted under Phase II of the Bank Secrecy Act?

Answer options

• A. Government agencies
• B. Correspondent banks
• C. Payroll customers
• D. Businesses whose stocks are traded on a national stock exchange

Correct answer: C

Explanation

Payroll customers are often exempt under Phase II of the Bank Secrecy Act because their transactions are typically low-risk and well-regulated. In contrast, government agencies, correspondent banks, and businesses whose stocks are traded on national exchanges do not generally qualify for this exemption due to the higher scrutiny and regulatory requirements associated with their operations.