CFE – Law — Question 1

Under the best practices listed in the Financial Action Task Force (FATF) Recommendations concerning large cash transactions with customers, which of the following transactions would require a report to be filed with the government?

Answer options

• A. A domestic credit card purchase of a piece of jewelry above the jurisdiction's designated threshold
• B. A lump-sum cash deposit to a bank above the jurisdiction's designated threshold
• C. An international purchase of a small boat with a lump-sum cash payment below the jurisdiction's designated threshold
• D. A cash payment to a restaurant supplier for restaurant supplies above the jurisdiction's designated threshold

Correct answer: D

Explanation

The correct answer is D, as it involves a cash payment above the jurisdiction's designated threshold, which is required to be reported. Options A and B also exceed the threshold but are not cash transactions in the same context as D. Option C is below the threshold, therefore does not require a report.