In case a transaction is both reportable as 'covered' and at the same time 'suspicious', it shall be reported to the AMLC as

• A. A covered transaction
• B. A suspicious transaction
• C. Both a covered and suspicious transaction
• D. A complaint for money laundering

Answer: (B)

When a transaction raises red flags, the priority is to report it as suspicious. Suspicion triggers a Suspicious Transaction Report (STR) to the AMLC, because this form is specifically designed to convey potential money laundering concerns for immediate investigation. The covered-transaction category is about threshold-based reporting, but if the activity appears suspicious, that suspicion drives the report to AMLC via an STR, which supersedes simply filing as a covered transaction. So even though the transaction might also be a covered transaction, the correct action is to submit a suspicious transaction report.