CAM Regulatory Compliance 2

Question 1

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

Accepted Answer

$10,000

Answer

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

Question 2

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

Accepted Answer

Structuring

Answer

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

Question 3

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

Accepted Answer

FinCEN

Answer

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

Question 4

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

Accepted Answer

The Annual Percentage Rate and key loan terms

Answer

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

Question 5

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

Accepted Answer

30 days

Answer

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

(CAM) Certified Account Manager Practice Test