Certified Regulatory Compliance Manager (CRCM) — Question 300

Walter Johnson has two accounts at First National Bank. His savings account was opened in 1975, and his money market savings account was opened in
1985.He has never supplied a TIN number to the bank. What must First National Bank do?

Answer options

• A. Withhold 28 percent of the payments on each of the accounts
• B. Withhold 28 percent of the payments on each account and annually request a TIN on the savings account
• C. Annually request a TIN on both accounts
• D. Refuse to open future accounts without a TIN

Correct answer: B

Explanation

The correct answer is B, as the bank is required to withhold a percentage from payments due to the lack of a TIN and must also annually request the TIN for compliance. Option A is incorrect because it does not include the annual request for a TIN. Option C fails to address the withholding requirement, and option D is not applicable since it relates to future accounts rather than the current situation.