CAMS Key AML Laws and Regulations (BSA, USA PATRIOT Act, EU AMLDs, UK POCA)

Question 1

Under the U.S. Bank Secrecy Act, when must a financial institution file a Currency Transaction Report (CTR)?

Accepted Answer

For cash transactions over $10,000 by or on behalf of one person in one business day

Answer

CTRs are required for cash transactions over $10,000, including multiple transactions aggregated by or for one person in a single business day. They are filed within 15 days whether or not the activity is suspicious. Suspicion triggers a SAR, not a CTR.

Question 2

What power does Section 311 of the USA PATRIOT Act give the U.S. Treasury?

Accepted Answer

To designate a foreign jurisdiction, institution or transaction type as a 'primary money laundering concern' and impose special measures

Answer

Section 311 lets Treasury (through FinCEN) name a foreign jurisdiction, institution, class of transactions or type of account as a primary money laundering concern. It can then impose special measures ranging from extra recordkeeping to banning correspondent accounts.

Question 3

What does Section 313 of the USA PATRIOT Act prohibit U.S. financial institutions from doing?

Accepted Answer

Keeping correspondent accounts for foreign shell banks

Answer

Section 313 bans U.S. institutions from keeping correspondent accounts for foreign shell banks, meaning banks with no physical presence in any country, and requires reasonable steps to ensure correspondent accounts aren't used indirectly to serve shell banks.

Question 4

Which U.S. law first made money laundering a federal crime (18 U.S.C. §§ 1956 and 1957)?

Accepted Answer

Money Laundering Control Act of 1986

Answer

The Money Laundering Control Act of 1986 created the federal money laundering offenses. Section 1957 also covers monetary transactions over $10,000 in criminally derived property. The BSA of 1970 set up reporting and recordkeeping duties but did not make laundering itself a crime.

Question 5

Under the EU AML legislative package adopted in 2024, which new body was created to directly supervise selected high-risk financial institutions and coordinate national supervisors?

Accepted Answer

Anti-Money Laundering Authority (AMLA)

Answer

The 2024 EU AML package created the Anti-Money Laundering Authority (AMLA), based in Frankfurt. It will directly supervise certain high-risk cross-border institutions and coordinate national AML supervisors and FIUs. Before this, many AML coordination tasks sat with the EBA.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS Key AML Laws and Regulations (BSA, USA PATRIOT Act, EU AMLDs, UK POCA)