Regarding reporting thresholds, which question would be a red flag?

• A. Asking about interest rates.
• B. Asking for how to structure a transaction.
• C. Inquiring about reporting thresholds.
• D. Requesting tax information for deductions.

Answer: (C)

Understanding reporting thresholds is about the point at which transactions must be reported to authorities. Asking about those thresholds signals an awareness of the exact limits and a possible aim to structure activity to stay below or avoid triggering a report. That focus on how thresholds work is a clear red flag because it suggests intent to evade regulatory obligations rather than seek legitimate information. Questions about interest rates are common during due diligence, inquiries about how to structure a transaction can be legitimate planning in some contexts, and requesting tax information for deductions relates to tax matters rather than AML reporting.