Regulatory Compliance Flashcards

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

Answer: $10,000

Financial institutions must file a CTR for cash transactions exceeding $10,000 in a single business day.

A client structures multiple cash deposits of $9,500 each over several days to avoid CTR reporting. This practice is known as:

Answer: Structuring

Structuring (also called 'smurfing') is the illegal practice of breaking large transactions into smaller amounts to evade reporting requirements.

Which federal agency is primarily responsible for enforcing the Bank Secrecy Act?

Answer: FinCEN

The Financial Crimes Enforcement Network (FinCEN) administers and enforces the BSA on behalf of the Treasury Department.

Under Regulation Z (Truth in Lending), what must be prominently disclosed before a consumer credit account is opened?

Answer: The Annual Percentage Rate and key loan terms

Regulation Z requires lenders to clearly disclose the APR and material terms so consumers can compare credit offers.

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

Answer: 30 days

Financial institutions are required to file a SAR within 30 days (extendable to 60 days with written notice) of detecting a suspicious transaction.

Which regulation implements the Community Reinvestment Act, requiring banks to meet the credit needs of all segments of their communities?

Answer: Regulation BB

Regulation BB implements the CRA, outlining how banks must document and demonstrate their lending in low- and moderate-income communities.

The 'red flag rules' under FACTA require financial institutions to implement programs to detect and respond to indicators of:

Answer: Identity theft

FACTA's Red Flag Rules require covered entities to create written programs for identifying and responding to identity theft warning signs.