First National Bank has several exempt customers.
"¢ Alpha is an exempt person because its stock is listed on a major stock exchange.
"¢ Beta is an exempt person because it meets the nonlisted customer requirements.
"¢ Zeta is exempt because it is a payroll customer. For which customer(s) must the bank conduct an annual review to determine its continuing eligibility to be exempt from CTR filings?
Under the Bank Secrecy Act (BSA) regulations, banks are required to conduct an annual review of the eligibility of their exempt customers to ensure they continue to meet the criteria for exemption from Currency Transaction Report (CTR) filings. This requirement typically applies to non-listed businesses and payroll customers, which must satisfy specific criteria to qualify for and maintain their exempt status. Listed businesses, like Alpha, with stock listed on a major stock exchange, do not require an annual review for their exemption status because their public trading status is considered a sufficient ongoing indicator of their eligibility. Therefore, the customers for which the bank must conduct an annual review to determine continuing eligibility to be exempt from CTR filings are Beta and Zeta.
D should actually state, "Alpha, Beta and Zeta", page 1076 of the online book. This is a clear example of how the questions/responses cannot truly be trusted here. It would be great if you do a better job since we are paying you to get access to these.
The correct answer is D. Beta and Zeta. Under the Bank Secrecy Act (BSA) regulations, banks are required to conduct an annual review of the eligibility of their exempt customers to ensure they continue to meet the criteria for exemption from Currency Transaction Report (CTR) filings. This requirement typically applies to non-listed businesses and payroll customers, which must satisfy specific criteria to qualify for and maintain their exempt status. Listed businesses, like Alpha, with stock listed on a major stock exchange, do not require an annual review for their exemption status because their public trading status is considered a sufficient ongoing indicator of their eligibility.