A Canadian financial institution receives a large cash deposit of $15,000 CAD into a new corporate account opened by a holding company with complex ownership structure. The beneficial owner is identified as an individual currently residing in a jurisdiction known for high corruption. What is the financial institution's primary obligation under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)?

Question: A Canadian financial institution receives a large cash deposit of $15,000 CAD into a new corporate account opened by a holding company with complex ownership structure. The beneficial owner is identified as an individual currently residing in a jurisdiction known for high corruption. What is the financial institution's primary obligation under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)?

Answer options:

• Report the transaction to the Canadian Securities Administrators (CSA) within 30 days. ✅ File a Large Cash Transaction Report (LCTR) with FINTRAC and conduct ongoing monitoring.
• Block the transaction and immediately freeze the funds until further investigation.
• Obtain additional identification from the beneficial owner within 24 hours.

Correct answer: File a Large Cash Transaction Report (LCTR) with FINTRAC and conduct ongoing monitoring.

Explanation: Under the PCMLTFA, financial institutions must file a Large Cash Transaction Report (LCTR) for cash transactions of $10,000 CAD or more and are required to conduct ongoing monitoring for suspicious activities.