A compliance officer is investigating a customer who frequently transfers funds to a shell company. What should be the next step?

Closing the customer's account without further investigation could be premature and may prevent gathering necessary information that could clarify the situation. A compliance officer should first assess the risk and gather data before taking such a definitive action.

While filing a suspicious activity report (SAR) is an important part of compliance, doing so without further investigation may not provide sufficient context for the suspicious activity. It is essential to conduct a thorough investigation to obtain all pertinent details before filing a SAR.

Restricting transactions to domestic transfers does not address the fundamental issue of understanding the customer's relationship with the shell company. This action could limit the customer's business unnecessarily without providing clarity on the potential risks involved.