An MLO discovers that a colleague has been accepting cash payments from borrowers to overlook documentation discrepancies. The colleague is terminated, but no borrower has suffered financial harm. What is the SAR filing requirement?
Correct Answer
B) SAR must be filed for insider fraud regardless of customer financial impact
SARs must be filed for insider fraud involving institution personnel, regardless of whether customers suffered financial harm. The BSA requires reporting of suspicious activities that may involve violations of law, including bribery and corruption by employees, even when customer losses are not apparent.
Why This Is the Correct Answer
SARs must be filed for insider fraud involving institution personnel, regardless of whether customers suffered financial harm. The BSA requires reporting of suspicious activities that may involve violations of law, including bribery and corruption by employees, even when customer losses are not apparent.
More Ethics & Fraud Questions
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An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?
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Previous Question
A real estate agent who frequently refers clients asks an MLO to provide a list of recent loan approvals with borrower names and loan amounts for marketing purposes. The agent offers to split referral fees. What should the MLO do?
Next Question
A lender's automated underwriting system consistently approves fewer applications from a particular zip code that has a high concentration of Hispanic borrowers, even when controlling for credit scores and income. The lender claims the system is objective and race-neutral. Under fair lending law, this situation would MOST likely be considered: