Great Northern Bank makes loans to thousands of individuals and companies. They are under investigation for their handling of several cash transactions of $100,000 or more from a seemingly legitimate business. The federal investigation discovered that the business was a front for an organized crime group selling illegal weapons. Which of the following is true?

a. The bank is not responsible for reporting these transactions based on the Sherman Act.

b. The bank is responsible for reporting these transactions under the USA Patriot Act.

c. The bank is responsible for all the actions of their customers and is therefore liable.

d. The bank may not be responsible for reporting these transactions based on RICO Act.

Question

Business

Jax

7 July, 11:06

Great Northern Bank makes loans to thousands of individuals and companies. They are under investigation for their handling of several cash transactions of $100,000 or more from a seemingly legitimate business. The federal investigation discovered that the business was a front for an organized crime group selling illegal weapons. Which of the following is true?

a. The bank is not responsible for reporting these transactions based on the Sherman Act.

b. The bank is responsible for reporting these transactions under the USA Patriot Act.

c. The bank is responsible for all the actions of their customers and is therefore liable.

d. The bank may not be responsible for reporting these transactions based on RICO Act.

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Answers (1)

Know the Answer?

Maeve Roberts · Answer 1

The correct option is (b)

Explanation:

USA Patriot Act was enforced after 2001 attacks to protect people from terrorist attacks or illegal activities. The purpose of this act is to detect and prevent any kind of funding from criminal activities or money laundering.

Here, Great Northern Bank is handling cash transactions of organization selling illegal weapons. It is the bank's responsibility to report these transactions under USA Patriot Act.