Question
A client purchased a new annuity contract with $6,000, money the agent believes was earned trafficking in drugs. What form must the insurance company file with FinCEN when the agent reports the transaction and her belief?
1. Currency Transaction Report.
2. Report of Foreign Bank and Financial Accounts.
3. Registration of Money Services Business.
4. Suspicious Activity Report.
1. Currency Transaction Report.
2. Report of Foreign Bank and Financial Accounts.
3. Registration of Money Services Business.
4. Suspicious Activity Report.
Answers
GPT-4o mini
In this scenario, the correct form that the insurance company must file with FinCEN when the agent reports the transaction and her belief regarding the funds being potentially related to illegal activity (such as drug trafficking) is:
4. **Suspicious Activity Report (SAR)**.
A SAR is required when a financial institution detects information that would lead a reasonable person to suspect that a transaction involves funds derived from illegal activity or attempts to hide such funds.
4. **Suspicious Activity Report (SAR)**.
A SAR is required when a financial institution detects information that would lead a reasonable person to suspect that a transaction involves funds derived from illegal activity or attempts to hide such funds.