Record-keeping requirements specify transfers over which amount?

• A. $3,000
• B. $1,000
• C. $2,000
• D. $5,000

Answer: (A)

Recordkeeping for funds transfers under the Bank Secrecy Act kicks in when the transfer reaches a specific amount. This threshold is three thousand dollars. When a transfer of three thousand dollars or more is initiated or received, the financial institution must document essential details about both the originator and the beneficiary, including originator's name and address, date of birth, and an identifying number such as a government ID; the beneficiary's name and account details; the amount and date of the transfer; and any intermediary banks involved. These records must be retained for several years and be available for regulatory examinations. The purpose is to create a verifiable trail to support investigations into illicit activity. If the transfer is below the threshold, the rule doesn't require this recordkeeping, though other policies may apply.