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