In a funds transfer, which description best defines the Originator?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

The originator is the party that starts a funds transfer by issuing the payment instruction to move money from their account to someone else. This is the entity initiating the transfer, typically the customer or company that wants to send funds. The bank or payment system merely processes that instruction on behalf of the originator. The recipient, or beneficiary, is the one who will receive the funds. A government official requesting records is unrelated to who starts a transfer, and the institution that processes payments is the service provider carrying out the transfer, not the initiator. Understanding who initiates the transfer is important for identifying risk, performing due diligence, and applying proper compliance checks.