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Finra SIE Exam - Topic 3 Question 26 Discussion

Activities]A registered representative (RR) opens a new account for a customer whose investment objectives are growth and income. She makes an initial deposit of $5,500 using a series of money orders drawn from different sources, and she makes no investments for the first 30 days the account is open. At the end of that time, the customer asks to have the funds wired to an account at a different firm as her needs have changed. The RR's first course of action should be to:
C) Report internally as a suspicious activity.
A) Deny the request.
B) Freeze the account.
D) Accept the instructions and wire the funds.

Finra SIE Exam - Topic 3 Question 26 Discussion

Actual exam question for Finra's SIE exam
Question #: 26
Topic #: 3
[All SIE Questions]

Activities]

A registered representative (RR) opens a new account for a customer whose investment objectives are growth and income. She makes an initial deposit of $5,500 using a series of money orders drawn from different sources, and she makes no investments for the first 30 days the account is open. At the end of that time, the customer asks to have the funds wired to an account at a different firm as her needs have changed. The RR's first course of action should be to:

Show Suggested Answer Hide Answer
Suggested Answer: C

Step by Step

Suspicious Activity: The use of multiple money orders, lack of investment activity, and request to wire funds to another firm raise red flags for potential money laundering.

FINRA Rules: The RR should escalate the issue by reporting internally and potentially filing a Suspicious Activity Report (SAR).

Incorrect Options:

A: Denying the request without investigation may violate customer instructions.

B: Freezing the account requires a valid legal or regulatory basis.

D: Processing the request without investigation could facilitate illegal activity.

FINRA Anti-Money Laundering (AML) Guidance: FINRA AML Rules.


by Nenita at Jun 19, 2026, 04:51 PM

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Mirta
3 days ago
But what if the customer really needs the funds? D seems reasonable too.
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Stephania
8 days ago
I think C is the best choice. Suspicious activity needs reporting.
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Norah
14 days ago
This question is tricky. I feel like there's a lot to consider.
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Thurman
19 days ago
Sounds like a classic case of potential money laundering.
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Adrianna
24 days ago
Just wire the funds, it's the customer's money!
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Lili
29 days ago
Wait, why would she freeze the account? That seems extreme.
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Matt
1 month ago
I agree, too many money orders can raise red flags.
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Johnetta
1 month ago
The RR should definitely report it as suspicious activity.
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Venita
1 month ago
I think the RR should accept the instructions and wire the funds, but I’m worried about the money orders being a red flag.
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Lourdes
2 months ago
I feel like denying the request could be too extreme, but I’m not entirely sure what the right protocol is here.
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Meaghan
2 months ago
This seems similar to a practice question we did on account monitoring. I think the RR might need to report it first before taking any action.
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Nieves
2 months ago
I remember something about monitoring accounts for suspicious activity, but I'm not sure if this situation qualifies.
upvoted 0 times
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