Apply anti-money laundering rules, books and records and privacy requirements, and the best interest and suitability obligations governing communications and recommendations.

How does a Suspicious Activity Report differ from a Currency Transaction Report in the way it is triggered?

• AIt is triggered automatically whenever a customer deposits more than 10,000 dollars in cash in one day.
• BIt is triggered only when a regulator specifically requests information about a named customer.
• CIt is triggered whenever a customer opens a margin account without providing a tax identification number.
• DIt is triggered by a judgement that a transaction may involve illicit funds or has no lawful purpose, not by a fixed cash amount.check_circle Correct

Why A is wrong: That threshold defines the Currency Transaction Report; the Suspicious Activity Report turns on suspicion, which can arise well below or above any set figure.

Why B is wrong: A firm files a Suspicious Activity Report on its own initiative when it detects suspicious activity, not merely in response to a regulator's request.

Why C is wrong: A missing tax identification number raises account-opening and verification issues, but it is not what defines the suspicious-activity trigger.

Why D is correct: The Suspicious Activity Report rests on the firm's reasonable suspicion of illegality, so the trigger is qualitative judgement rather than a mechanical dollar count.