A covered nonbank loan or finance company identifies an attempted transaction through it involving a $6,200 earnest-money wire from an unrelated party, refunded three days later. Assume it knows or reasonably suspects facts meeting a suspicious-activity criterion in section 1029.320(a)(2). Does this amount meet the mandatory SAR dollar threshold?
Correct Answer
A) Reportable: the transaction involves assets of at least $5,000
A. The $6,200 amount exceeds the $5,000 threshold. The rule reaches a conducted or attempted transaction with the required company nexus and suspicious facts. $6,200 is $1,200 above the threshold; two separate wires are not required. Scope and exceptions: A refund or unrelated sender alone does not prove crime. Assess the facts and applicable suspicion criteria; amount alone is insufficient. Below-threshold suspicious activity may still be voluntarily reported. Follow SAR confidentiality requirements. Source: 31 CFR 1029.320(a)(1)–(2), (d) — https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1029/subpart-C/section-1029.320
Why This Is the Correct Answer
A. The $6,200 amount exceeds the $5,000 threshold. The rule reaches a conducted or attempted transaction with the required company nexus and suspicious facts. $6,200 is $1,200 above the threshold; two separate wires are not required. Scope and exceptions: A refund or unrelated sender alone does not prove crime. Assess the facts and applicable suspicion criteria; amount alone is insufficient. Below-threshold suspicious activity may still be voluntarily reported. Follow SAR confidentiality requirements.
Why the Other Options Are Wrong
Option B: Not reportable: earnest money is held by escrow, not by the lender
Escrow custody does not negate the expressly stipulated nexus.
Option C: Not reportable: a wire under $10,000 is below the filing threshold
It substitutes an unrelated $10,000 threshold.
Option D: Reportable only if the same party sends 2 or more such wires
A single qualifying transaction can require reporting.
Exam Tip
Check coverage, transaction nexus, amount and suspicion separately.
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