A borrower pays the loan application fee with multiple money orders, each just under $3,000, totaling $8,500. The borrower states they 'don't trust banks' and prefer money orders. This scenario primarily raises concerns about:
Correct Answer
A) CTR threshold avoidance through structuring
Using multiple monetary instruments just under the $3,000 reporting threshold may indicate structuring to avoid CTR requirements under 31 USC 5324. This pattern of breaking up transactions is a red flag for potential money laundering activity.
Why This Is the Correct Answer
Using multiple monetary instruments just under the $3,000 reporting threshold may indicate structuring to avoid CTR requirements under 31 USC 5324. This pattern of breaking up transactions is a red flag for potential money laundering activity.
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