American Bankers Association CRCM Exam - Topic 4 Question 18 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 18
Topic #: 4

[All CRCM Questions]

James Walker DBA Walker Enterprises has been a customer of the bank for one month. The company told the bank that it would regularly make deposits in excess of $10,000 because it operates several laundromats in the city. The bank performed a background check on the company before opening the account. For its first 30 days, the company made 12 large cash deposits. Can the bank exempt this company now? Why or why not?

ANo. It is a not a corporation, but a sole proprietorship.

BNo. It has not maintained an account at the bank for 12 months.

CNo. It operates an ineligible business.

DYes. The bank conducted due diligence on the customer to determine that it had legitimate large cash transactions.

Show Suggested Answer

Suggested Answer: D

by Virgina at May 07, 2022, 05:00 AM

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Shizue

5 months ago

Seems odd that they’d exempt it after just one month!

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Delsie

5 months ago

Yeah, they should stick to the 12-month rule.

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Shelton

5 months ago

Wait, can they really exempt a sole proprietorship?

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Louvenia

5 months ago

Definitely not a corporation, so that matters!

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Maile

5 months ago

I think they need to wait a full year before any exemptions.

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Dahlia

6 months ago

Okay, let's see. The Directive applies to government institutions, so the exception must be something outside of that. The Cabinet seems like the most likely answer since it's not a typical government institution.

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Coletta

6 months ago

Hmm, I'm a bit unsure about this one. I'll need to think it through and try to eliminate the options that don't seem quite right.

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Ressie

6 months ago

This seems pretty straightforward. I think the key is to focus on the Fibre Channel Protocol and the NetApp ONTAP storage system requirements.

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