Banking Anti-Money Laundering 2

Question 1

Under the Bank Secrecy Act, what is the minimum threshold that triggers a mandatory Currency Transaction Report (CTR)?

Accepted Answer

$10,000

Answer

The BSA requires banks to file a CTR for any cash transaction exceeding $10,000 in a single business day.

Question 2

Which of the following best describes 'layering' in the money laundering process?

Accepted Answer

Moving funds through multiple transactions to obscure their origin

Answer

Layering involves complex financial transactions designed to disguise the audit trail and separate the funds from their illegal source.

Question 3

A customer makes multiple cash deposits of $9,500 on consecutive days. What AML concern does this raise?

Accepted Answer

Structuring (smurfing)

Answer

Structuring, also called smurfing, involves breaking up large cash amounts into smaller deposits to evade CTR filing requirements.

Question 4

Which federal agency primarily administers and enforces the Bank Secrecy Act?

Accepted Answer

Financial Crimes Enforcement Network (FinCEN)

Answer

FinCEN, a bureau of the U.S. Treasury Department, is the primary regulator responsible for administering the BSA.

Question 5

What does the term 'beneficial owner' refer to in the context of AML compliance?

Accepted Answer

The individual who ultimately owns or controls a legal entity

Answer

A beneficial owner is the natural person who ultimately owns or exercises control over a legal entity customer, as required to be identified under FinCEN's CDD Rule.

Banking Practice Test

Banking Practice Test

Banking Anti-Money Laundering 2