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?

Question

Quizplus · Accepted Answer

The bank conducted a background check on the company before opening the account and has monitored the company's transactions for the first 30 days. It has determined that the company's large cash deposits are legitimate and related to its business operations. Therefore, the bank can exempt this company from further monitoring under the Bank Secrecy Act. Neither being a sole proprietorship nor the length of time the account has been open affects the bank's decision to exempt the company. The fact that it operates in the laundromat industry also does not make it ineligible for exemption as long as its transactions are legitimate.

James Walker DBA Walker Enterprises Has Been a Customer of the Bank