In 2001, what major changes occurred?

• A. Suspicious transaction reporting requirement was introduced; scope expanded to include terrorist financing.
• B. Banking sector was exempt from reporting.
• C. Financial regulators assigned new duties to tax collection.
• D. The act was repealed.

Answer: (A)

In 2001 the anti-money laundering regime was strengthened by adding Suspicious Transaction Reporting requirements for reporting entities and broadening the scope to cover terrorist financing. This means institutions like banks and others had to file STRs when transactions looked suspicious and activities that could fund terrorism also had to be reported. The change gave authorities a formal channel and broader reach to detect and disrupt money laundering and the financing of terrorism. The other options don’t fit: there was no exemption for the banking sector, the act wasn’t repealed, and regulators didn’t gain new tax-collection duties.