Banking Exam Anti-Money Laundering Compliance 2

Question 1

Under the Bank Secrecy Act, what is the maximum civil penalty a financial institution can face per willful BSA violation?

Accepted Answer

$1,000,000

Answer

Willful BSA violations can carry civil penalties up to $1,000,000 or the amount involved in the transaction, whichever is greater.

Question 2

A customer makes 10 cash deposits of $9,500 each over two weeks to avoid CTR filing. This is known as:

Accepted Answer

Smurfing

Answer

Smurfing (also called structuring) involves breaking large cash amounts into smaller deposits to evade the $10,000 CTR reporting threshold.

Question 3

Which federal agency is primarily responsible for enforcing AML laws against financial institutions in the US?

Accepted Answer

FinCEN

Answer

FinCEN (Financial Crimes Enforcement Network), a bureau of the U.S. Treasury, is the primary agency administering and enforcing BSA/AML requirements.

Question 4

What does the 'layering' stage of money laundering involve?

Accepted Answer

Disguising the trail through complex transactions

Answer

Layering is the second stage of money laundering, designed to conceal the audit trail through a series of complex financial transactions.

Question 5

A Suspicious Activity Report (SAR) must be filed within how many days of identifying a suspicious transaction?

Accepted Answer

30 days

Answer

SARs must be filed within 30 calendar days of the date the suspicious activity is initially detected, with a possible 60-day extension if no suspect is identified.

Banking Exam Practice Test

Banking Exam Practice Test

Banking Exam Anti-Money Laundering Compliance 2