CFE – Law — Question 31

The same customer comes into a casino each day and deposits a large amount of cash into an account, but, after very little gambling, the customer withdraws the funds. The casino employees suspect that the customer may be engaged in money laundering activity. Assuming that the anti-money laundering (AML) regulations that govern the casino's activities correspond to the Financial Action Task Force (FATF) Recommendations, the casino:

Answer options

• A. May, but is not required to, file a report of suspicious transactions related to possible money laundering with appropriate authorities
• B. May not file a report of suspicious transactions related to potential criminal activity with appropriate authorities
• C. Is required to file a cash transaction report for possible criminal activity with appropriate authorities because cash was involved
• D. Is required to file a report of suspicious transactions with appropriate authorities because the employees suspect money laundering violations

Correct answer: A

Explanation

The correct answer is A because while the casino may suspect money laundering, they are not mandated to file a report unless certain thresholds are met. Options B and C are incorrect as they misstate the casino's obligations under AML regulations, and option D incorrectly suggests a requirement to report based solely on suspicion without further criteria.