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Question 219

First National Bank is attempting to determine which of the following customers would qualify as exempt persons:

"¢ Nationwide Foods, Inc., is a national company with stock listed on the New York Stock Exchange

"¢ National Paper Products, is a wholly owned subsidiary of Nationwide Foods, Inc.

"¢ Products Incorporated, a depositor for three months, is a regional company whose stock is designated a NASDAQ Capital Markets Company and that sells and leases large boats

"¢ Century Enterprises, a local company owning several local restaurants, is a longtime bank customer and frequently makes deposits in excess of $10,000. All of

Century's stock is owned by a local family. Which of these customers would qualify as an exempt person?

All except for Nationwide Foods, Inc.

All except for National Paper Products

All except for Century Enterprises

All except for Products Incorporated

Correct Answer: C

Exempt persons under the Bank Secrecy Act (BSA) typically include publicly traded companies and their subsidiaries, as well as companies listed on stock exchanges such as the New York Stock Exchange (NYSE) and NASDAQ. Nationwide Foods, Inc. qualifies as it is listed on the NYSE. National Paper Products, being a wholly owned subsidiary of Nationwide Foods, also qualifies. Products Incorporated qualifies because it's a company listed on NASDAQ. Century Enterprises does not qualify because it is a local company with all stock owned by a local family and does not meet the criteria of being publicly traded or listed on a major stock exchange.

Discussion

Cam22Option: D

question is in the guide