Certified Regulatory Compliance Manager (CRCM) — Question 237

For which of the following is a bank most likely to be in danger of receiving a cease and desist order?

Answer options

• A. Repetition in a BSA examination of a noncritical deficiency reported in a previous BSA examination
• B. Failure to document AML training to its part-time clerical employees
• C. A 2 percent error rate on the bank's CTRs
• D. Failure to file suspicious activity reports

Correct answer: D

Explanation

The correct answer is D, as failing to file suspicious activity reports is a serious regulatory violation that can lead to significant penalties. While the other options may indicate areas for improvement or compliance issues, they do not carry the same level of risk for immediate regulatory action as the failure to report suspicious activities, which is critical for preventing money laundering.