General Securities Sales Supervisor (Series10) Practice Exam

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Study for the General Securities Sales Supervisor (Series10) exam. Prepare with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

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If a customer deposits more than $10,000 in cash, what report must be filed?

A FOCUS
B CTR
C SAR
D ADV

The correct answer is: B CTR

When a customer deposits more than $10,000 in cash, a Currency Transaction Report (CTR) must be filed. The requirement for filing a CTR is part of the regulations instituted by the Bank Secrecy Act (BSA), which mandates financial institutions to report large cash transactions in order to help combat money laundering and other financial crimes. The filing of a CTR is designed to create a paper trail for significant cash transactions which can be valuable for regulatory agencies monitoring suspicious activities. In this context, it is crucial for financial institutions to remain compliant with these regulations, as failure to file a CTR for qualifying transactions can lead to legal penalties. The process includes providing information about the transaction, such as the amount, the parties involved, and the nature of the transaction, which gets submitted to the Financial Crimes Enforcement Network (FinCEN). Understanding this requirement and the importance of CTRs is essential for anyone working in the securities industry, especially in a supervisory capacity.