A real estate agent receives a cash deposit of $15,000 from a buyer who appears nervous and provides inconsistent information about their identity. What should the agent do?
Correct Answer
C) Apply enhanced customer due diligence and lodge a suspicious matter report
Under AML/CTF obligations, agents must apply enhanced customer due diligence when a transaction raises suspicion and lodge a suspicious matter report (SMR) with AUSTRAC. Because the deposit is $10,000 or more in physical cash, a threshold transaction report must also be lodged with AUSTRAC within 10 business days, whether or not an SMR is lodged.
Why This Is the Correct Answer
Nervousness, a large cash amount and inconsistent identity details are red flags. The agent should apply enhanced due diligence and, if suspicion remains, lodge a suspicious matter report with AUSTRAC, without telling the buyer.
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