The correct answer is C. Deposit transactions of $10,000 CDN or more . Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) , as outlined in Investment Funds in Canada , securities dealers and mutual fund dealers are required to report large cash transactions to FINTRAC .
A large cash transaction is defined as a cash deposit of $10,000 or more in a single transaction or multiple transactions within a 24-hour period . This reporting obligation applies regardless of whether the transaction appears suspicious. The objective is to detect and deter money laundering and terrorist financing activities.
Cross-border reporting rules are different and involve specific criteria. Transactions of $5,000 do not meet the reporting threshold. Not all $10,000 transactions are reportable—only cash deposits fall under this mandatory reporting rule.
The CIFC curriculum stresses that understanding reporting thresholds is a critical compliance responsibility for dealing representatives. Therefore, Option C is the correct and fully CIFC-aligned answer.
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