Exercise
Answer TRUE or FALSE
- 1. TRUE or FALSE. Each registered representative and principal must participate in an annual compliance meeting that is conducted with the entire office.
- 2. TRUE or FALSE. Money laundering is the process of transforming illegally gained funds into seemingly legitimate funds and is commonly achieved in three steps.
- 3. TRUE or FALSE. All municipal branch offices must be inspected by the dealer firm every year for compliance.
- 4. TRUE or FALSE. Dealers are required to report to the IRS any customer’s cash transactions exceeding $10,000 in a single day, whether made in a single transaction or several smaller ones.
- 5. TRUE or FALSE. A copy of a dealer’s written supervisory procedures must be kept only at each OMSJ.
- 6. TRUE or FALSE. Dealers must fill out a Suspicious Activity Report whenever a client makes a transaction in excess of $5,000 and the dealer knows or suspects illegal or other suspicious activity.
Answers
- 1. FALSE. Each registered representative and principal must participate in an annual compliance meeting. However, meetings may be conducted either individually or among a group of representatives, as long as the meeting covers compliance matters relevant to the activities of each of the attending members.
- 2. TRUE. The three step