Banking Anti-Money Laundering 5

Question 1

What does 'de-risking' mean in the context of AML compliance?

Accepted Answer

Banks terminating or restricting relationships with entire categories of high-risk customers

Answer

De-risking occurs when banks exit entire customer categories deemed too costly or risky to monitor, rather than managing risk through enhanced due diligence.

Question 2

Under the USA PATRIOT Act Section 314(a), FinCEN can require financial institutions to search their records for accounts or transactions associated with:

Accepted Answer

Suspects of money laundering or terrorist financing identified by law enforcement

Answer

Section 314(a) allows law enforcement to request that financial institutions search their records for accounts linked to specific suspects in money laundering or terrorist financing investigations.

Question 3

Which statement about SAR confidentiality is CORRECT?

Accepted Answer

SARs and the fact that one has been filed are strictly confidential and protected from disclosure

Answer

Federal law strictly prohibits disclosure of SARs or even the fact that a SAR has been filed, protecting the integrity of investigations and the filer from liability.

Question 4

A bank's AML training program must cover which of the following employee groups?

Accepted Answer

All bank personnel, including senior management and the board

Answer

Effective AML training must be provided to all employees whose jobs could relate to BSA compliance, including senior management and the board of directors.

Question 5

What is the minimum dollar threshold for a transaction to potentially require a SAR filing related to insider abuse?

Accepted Answer

No minimum threshold — any amount is reportable

Answer

When a bank employee or insider is involved, there is no minimum dollar threshold for SAR filing; even small amounts must be reported if insider abuse is suspected.

Banking Practice Test

Banking Practice Test

Banking Anti-Money Laundering 5