Which of the following businesses would be eligible to be an exempt person under the requirements of the Bank Secrecy Act?
Which of the following businesses would be eligible to be an exempt person under the requirements of the Bank Secrecy Act?
Jackson's Used Cars is eligible to be an exempt person under the Bank Secrecy Act because it falls under the category of a non-financial trade or business. Businesses like used car dealerships, which frequently engage in significant cash transactions, often qualify for exemptions if they meet the criteria outlined by the BSA. The other options like restaurants, boat dealerships, and aircraft distributors are either less likely to deal in significant amounts of cash transactions or might present higher risks for money laundering, making them less likely to qualify for exemptions under the BSA.
The correct answer is C. Al Williams Seafood Restaurant. Under the Bank Secrecy Act (BSA), businesses that typically qualify for exemptions from certain reporting requirements (such as currency transaction report filings) are those that operate outside of the financial sector and do not fall into categories associated with a high risk for money laundering or other financial crimes. Among the options provided, a restaurant, such as Al Williams Seafood Restaurant, is the type of business most likely to be eligible for an exempt status because it is not engaged in financial services, nor does it typically deal in large cash transactions associated with the other businesses mentioned, which might be considered higher risk under the BSA.