Banking Anti-Money Laundering 3

Question 1

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

Accepted Answer

30 days

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

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

Answer

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.

Question 4

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

Accepted Answer

Designation of a compliance officer responsible for BSA/AML

Answer

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

Question 5

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

Accepted Answer

Manipulating international trade transactions to transfer value across borders

Answer

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

Banking Practice Test