Under the Bank Secrecy Act, who can be held liable for failing to file required Suspicious Activity Reports?
Correct Answer
C) Both the financial institution and individual employees
Under the Bank Secrecy Act, both financial institutions and their individual employees can face civil and criminal penalties for willful failure to file required SARs. This creates personal liability for MLOs who fail to report suspicious activities they discover.
Why This Is the Correct Answer
Under the Bank Secrecy Act, both financial institutions and their individual employees can face civil and criminal penalties for willful failure to file required SARs. This creates personal liability for MLOs who fail to report suspicious activities they discover.
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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A borrower provides an MLO with a gift card worth $200 as appreciation for excellent service during the loan process. What should the MLO do?
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A loan originator notices that a borrower's employment verification letter has a phone number that, when called, goes directly to the borrower's personal cell phone voicemail. The borrower explains that their small company doesn't have a receptionist. What should the MLO do?