Which of the following is most likely to trigger a 'Suspicious Transaction Report' (STR) to FINTRAC?

Question: Which of the following is most likely to trigger a 'Suspicious Transaction Report' (STR) to FINTRAC?

Answer options:

• A client making a large cash down payment for an expensive home, with easily verifiable income. ✅ A client repeatedly making small deposits just under the reporting threshold, using different accounts, with no clear legitimate source of funds.
• A client asking many questions about mortgage rates.
• A client choosing a 5-year fixed mortgage over a 3-year variable mortgage.

Correct answer: A client repeatedly making small deposits just under the reporting threshold, using different accounts, with no clear legitimate source of funds.

Explanation: Layering tactics, such as structuring transactions (smurfing) to avoid reporting thresholds, are a common red flag for potential money laundering and would definitely warrant filing a Suspicious Transaction Report. The lack of a clear legitimate source of funds further raises suspicion.