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Anti-Money Laundering Flashcards

7 cards from real Banking practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Anti-Money Laundering flashcards as text

  1. A Suspicious Activity Report (SAR) must be filed within how many calendar days after a suspicious transaction is initially detected?

    Answer: 30 days

    Banks must file a SAR within 30 calendar days of initial detection, with an extension to 60 days if no suspect is identified.

  2. Which of the following scenarios would most likely require a bank to file a SAR?

    Answer: A new customer depositing $50,000 cash with no plausible business explanation

    Large cash deposits from new customers with no clear legitimate business purpose are classic red flags that warrant SAR filing.

  3. The 'tipping off' prohibition in AML law means that a bank employee must NOT:

    Answer: Inform the subject of a SAR that a report has been filed

    Tipping off is illegal; disclosing to a subject that a SAR has been filed or that an investigation is underway can result in criminal penalties.

  4. Which of the following is a key component of a bank's required AML/BSA compliance program?

    Answer: Designation of a compliance officer responsible for BSA/AML

    Federal regulations require every bank to designate a qualified BSA/AML compliance officer as one of the four pillars of a compliant program.

  5. What is 'trade-based money laundering' (TBML)?

    Answer: Manipulating international trade transactions to transfer value across borders

    TBML involves manipulating international trade documents—such as over- or under-invoicing—to move value across borders disguised as legitimate trade.

  6. Which list must U.S. banks screen customers against as part of OFAC compliance?

    Answer: Specially Designated Nationals (SDN) List

    OFAC's SDN List identifies individuals, companies, and countries with whom U.S. persons are prohibited from doing business.

  7. Under Section 314(b) of the USA PATRIOT Act, financial institutions may voluntarily share information about suspected money launderers with whom?

    Answer: Other financial institutions registered with FinCEN

    Section 314(b) allows registered financial institutions to share information with one another to identify and report potential money laundering or terrorist financing.