CRCM Exam: Mammoth Enterprises Exempt Customer at Bank

Mammoth Enterprises Exempt Customer at Bank

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Question

Mammoth Enterprises is a new customer to the bank. It is a wholly owned subsidiary of Mammoth Corporation. Which of the following statements, if true, would make Mammoth Enterprises an exempt customer at the bank?

Answers

Explanations

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A. B. C. D.

C

To determine whether Mammoth Enterprises is an exempt customer at the bank, we need to look at the definition of an exempt customer. In the context of financial institutions, exempt customers are those that are deemed low-risk and exempt from certain regulatory requirements, such as the Customer Identification Program (CIP) and the Currency Transaction Reporting (CTR) requirements. Exempt customers may include government agencies, publicly traded companies, and certain types of financial institutions.

Given the information provided in the question, we can eliminate answer choice A as it indicates that Mammoth Corporation is a London corporation trading on the London Stock Exchange. This does not provide any indication that Mammoth Corporation or Mammoth Enterprises meets the criteria for an exempt customer under U.S. regulations.

Answer choice B indicates that Mammoth Corporation is a U.S. corporation with unlisted stock. This also does not provide enough information to determine whether Mammoth Enterprises is an exempt customer at the bank.

Answer choice C indicates that Mammoth Corporation is a U.S. corporation trading on the American Stock Exchange. This may suggest that Mammoth Corporation is a publicly traded company, which could potentially make it an exempt customer at the bank. However, more information is needed to confirm this.

Answer choice D indicates that Mammoth Enterprises is a U.S. corporation primarily in the investment banking business. This information alone does not provide any indication that Mammoth Enterprises is an exempt customer at the bank.

Therefore, based on the information provided in the question, we cannot determine with certainty which statement would make Mammoth Enterprises an exempt customer at the bank. More information is needed to determine whether Mammoth Corporation is a publicly traded company or whether Mammoth Enterprises meets any other criteria for an exempt customer.