How many reportable currency transactions must occur for a non-listed business under Phase II?

The correct number of reportable currency transactions for a non-listed business under Phase II of the Bank Secrecy Act (BSA) is five or more. This threshold is in place to identify unusual patterns of cash transactions that might indicate potential money laundering or other financial crimes.

Phase II is part of an expanded effort to monitor cash transactions that exceed certain limits. For non-listed businesses, having five or more cash transactions that are reportable enables financial institutions to keep a closer watch on businesses that might be more susceptible to illicit financial activities. This proactive measure allows for greater oversight and strengthens the overall regulatory framework designed to combat financial crimes.

Understanding the five or more threshold helps financial institutions implement effective monitoring systems for cash transactions and encourages compliance with the BSA regulations. This focus not only assists in identifying risky activities but also supports broader efforts to enhance the integrity of the financial system.