Maria, a financial advisor, receives an anonymous tip that her client, Mr. Diaz, has been depositing large, frequent cash sums into his trading account from seemingly unrelated sources. Mr. Diaz's professional background does not typically involve such cash handling. Which act primarily governs Maria's obligations in this scenario?

Question: Maria, a financial advisor, receives an anonymous tip that her client, Mr. Diaz, has been depositing large, frequent cash sums into his trading account from seemingly unrelated sources. Mr. Diaz's professional background does not typically involve such cash handling. Which act primarily governs Maria's obligations in this scenario?

Answer options: ✅ The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)

• The Competition Act
• The Canada Business Corporations Act
• The Income Tax Act

Correct answer: The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)

Explanation: The PCMLTFA imposes obligations on financial entities, including financial advisors and their firms, to detect and deter money laundering and terrorist financing activities, which involves reporting suspicious transactions.