SIE (Securities Industry Essentials) Practice Exam

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What must a financial institution do upon receiving a deposit of $12,000 from one customer?

Report to the IRS immediately
File a Currency Transaction Report
Request additional identification from the customer
Nothing, as it is under the reporting threshold

The correct answer is: File a Currency Transaction Report

A financial institution is required to file a Currency Transaction Report (CTR) with the U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) upon receiving a cash deposit of $12,000 or more from one customer. This report is used to help law enforcement agencies identify and track potential illegal activities, such as money laundering. Option A is incorrect because the institution does not report to the IRS, but to FinCEN. Option C may be a valid request, but it is not the main requirement in this scenario. Option D is incorrect because the reporting threshold for CTRs is $10,000, not $12,000.