CAMS Suspicious Activity Reporting 2

Question 1

What is 'structuring' as defined under the Bank Secrecy Act?

Accepted Answer

Breaking up transactions specifically to evade the $10,000 CTR reporting threshold, which is itself a federal crime

Answer

Organizing a company's financial reporting into separate reporting units

Answer

Creating structured financial products for investment purposes

Answer

Organizing customer accounts into risk-tiered structures

Question 2

What is a 'continuing SAR' and when is it appropriate?

Accepted Answer

A SAR filed at 90-day intervals while suspicious activity by the same subject continues, after the initial SAR has been filed

Answer

A SAR that must be refiled every month indefinitely once suspicious activity is identified

Answer

A SAR that spans multiple reporting periods and requires special FinCEN approval

Answer

A SAR filed simultaneously with multiple law enforcement agencies

Question 3

Which of the following would NOT typically be included in the narrative of a well-written SAR?

Accepted Answer

The institution's opinion on whether the subject is guilty of money laundering

Answer

Who is involved in the suspicious activity

Answer

What specific transactions or behaviors are suspicious

Answer

When and where the suspicious activity occurred

Question 4

What is 'layering' in the three stages of money laundering?

Accepted Answer

The process of conducting complex transactions to distance funds from their criminal origin

Answer

The initial introduction of illicit funds into the financial system

Answer

The final integration of laundered money into the legitimate economy

Answer

The use of multiple bank accounts to hold illicit proceeds

Question 5

When is a financial institution NOT required to file a SAR even if it suspects illegal activity?

Accepted Answer

When the transaction is below $5,000 and involves an unknown customer

Answer

When the institution has already filed a CTR for the same transaction

Answer

There are no exemptions — SARs must always be filed if there is any suspicion

Answer

When the activity relates to securities violations rather than banking fraud

Question 6

What is meant by 'integration' in the context of money laundering?

Accepted Answer

The final stage where laundered funds re-enter the legitimate economy appearing as lawful income or assets

Answer

The process of integrating AML software into the institution's IT systems

Answer

The integration of multiple bank accounts into a single consolidated account

Answer

Combining BSA and AML reporting into a unified compliance function