When conducting enhanced due diligence based on red flags, which approach is most appropriate for mortgage lenders under BSA/AML requirements?
Correct Answer
B) Document findings and consult with the BSA officer before proceeding
BSA/AML procedures require that red flags trigger enhanced due diligence, which should be documented and reviewed with the institution's BSA officer to determine appropriate next steps, including potential SAR filing.
Why This Is the Correct Answer
BSA/AML procedures require that red flags trigger enhanced due diligence, which should be documented and reviewed with the institution's BSA officer to determine appropriate next steps, including potential SAR filing.
More Federal Laws Questions
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Previous Question
A mortgage broker charges a borrower $3,000 in origination fees and receives $2,500 in yield spread premium from the lender on the same transaction. For HOEPA points and fees calculation purposes, what amount must be included?
Next Question
Which of the following documents must be provided to trigger the start of the 3-day rescission period?