Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?

A real estate broker overhears her buyer discussing what she believes to be illegal activities while on a phone conversation. The real estate broker notifies the buyer’s mortgage loan originator (MLO) that the borrower may be using illegally acquired funds as down payment for this property. The MLO decides to report some suspicious cash deposit transactions found in the borrower’s bank records.

Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?
A . The buyer’s agent
B . All parties involved in the transaction
C . His loan processor
D . The report Is not permitted to be discussed with any parties involved in the transaction.

View Answer

Answer: D

Explanation:

Under the USA Patriot Act, if a Suspicious Activity Report (SAR) is filed due to potential illegal activities, the MLO (Mortgage Loan Originator) is prohibited from discussing the filing of the SAR with any parties involved in the transaction, including the buyer’s agent, loan processor, or any other party. This prohibition ensures that the investigation is not compromised and that the confidentiality of the report is maintained.

Discussing the SAR with any party is considered a violation of anti-money laundering (AML) rules.

References:

USA Patriot Act, Anti-Money Laundering Provisions

FinCEN Guidelines on SAR Confidentiality