What information is required about the recipient's financial institution in the transmittal order?

The information required about the recipient's financial institution in the transmittal order is essential for ensuring compliance with regulations and facilitating the smooth processing of funds. Identifying the recipient's financial institution allows for proper routing of the transaction and helps prevent errors or potential fraud.

This requirement is rooted in the need for transparency and traceability in financial transactions, which is a key principle in anti-money laundering (AML) practices. By knowing the financial institution associated with the recipient, financial institutions can better assess risks and comply with relevant reporting and record-keeping obligations under the Bank Secrecy Act (BSA).

Other options, such as only the name of the recipient, do not provide sufficient information needed for effective processing and compliance. Additionally, details like the recipient's total account balance and transaction history are not relevant to the basic requirements of a transmittal order and could violate privacy protections.