What describes why a transaction is considered unusual?

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

Multiple Choice

What describes why a transaction is considered unusual?

Describing why a transaction is unusual is done in the narrative that explains the red flags and suspicious elements of the activity. The term used for that explanation is the Suspicious Activity Description. It should spell out what was observed that deviates from the customer's normal behavior, the potential risks involved, and any context that makes the activity stand out as unusual. This description is what helps investigators understand the basis for suspicion and decide to file a report. Supporting Documentation supports the claim by providing evidence, but it’s outside the narrative that explains the unusualness. Law Enforcement Inquiry is a contact or investigation step, not the reason a transaction is considered unusual. Reporting Thresholds relate to when you must report, not to the descriptive rationale.

Describing why a transaction is unusual is done in the narrative that explains the red flags and suspicious elements of the activity. The term used for that explanation is the Suspicious Activity Description. It should spell out what was observed that deviates from the customer's normal behavior, the potential risks involved, and any context that makes the activity stand out as unusual. This description is what helps investigators understand the basis for suspicion and decide to file a report. Supporting Documentation supports the claim by providing evidence, but it’s outside the narrative that explains the unusualness. Law Enforcement Inquiry is a contact or investigation step, not the reason a transaction is considered unusual. Reporting Thresholds relate to when you must report, not to the descriptive rationale.

More practice questions