A borrower mentions they will be receiving a large inheritance of $75,000 next month to help with the down payment, but they cannot provide documentation because 'the estate is still in probate.' This statement alone would most likely trigger which BSA/AML consideration?
Correct Answer
B) Red flag requiring enhanced due diligence
Unusual sources of funds, especially large amounts without proper documentation, constitute red flags under BSA/AML guidelines. This requires enhanced due diligence and documentation, though it doesn't automatically trigger SAR filing unless other suspicious indicators are present.
Why This Is the Correct Answer
Unusual sources of funds, especially large amounts without proper documentation, constitute red flags under BSA/AML guidelines. This requires enhanced due diligence and documentation, though it doesn't automatically trigger SAR filing unless other suspicious indicators are present.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
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For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
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A mortgage company's billboard displays 'Refinance and save! Payments starting at $999 per month on loans up to $200,000.' What makes this advertisement non-compliant with TILA?