CBA Regulatory Compliance and AML 2

Question 1

Under the USA PATRIOT Act Section 314(a), financial institutions must search their records upon receiving a request from FinCEN within how many days?

Accepted Answer

5 business days

Answer

3 business days

Answer

7 calendar days

Answer

14 calendar days

Question 2

Which AML red flag is most indicative of 'structuring' (smurfing) activity?

Accepted Answer

Multiple cash deposits just below $10,000 made on consecutive days

Answer

A customer making a single large wire transfer to a foreign bank

Answer

Frequent currency exchanges between dollars and euros

Answer

A business account receiving payroll direct deposits from many employers

Question 3

What is the primary purpose of a Suspicious Activity Report (SAR) filed with FinCEN?

Accepted Answer

To alert FinCEN to transactions that may involve money laundering or other financial crimes

Answer

To freeze a customer's account pending investigation

Answer

To notify law enforcement of confirmed criminal activity

Answer

To document the bank's refusal to process a transaction

Question 4

Under BSA regulations, a Currency Transaction Report (CTR) must be filed for cash transactions exceeding what threshold?

Accepted Answer

$10,000

Answer

$5,000

Answer

$25,000

Answer

$50,000

Question 5

The 'travel rule' in BSA/AML compliance requires banks to pass along certain information when transmitting funds. What is the minimum dollar threshold that triggers this rule?

Accepted Answer

$3,000

Answer

$1,000

Answer

$5,000

Answer

$10,000

Question 6

Which of the following is NOT one of the four core elements of an effective BSA/AML compliance program?

Accepted Answer

Annual external audit of all customer accounts

Answer

Internal policies, procedures, and controls

Answer

Designation of a BSA compliance officer

Answer

Ongoing employee training

Question 7

A bank receives a grand jury subpoena for a customer's records. Under the BSA 'tipping off' prohibition, the bank may NOT:

Accepted Answer

Notify the customer that a SAR was filed regarding their account

Answer

Produce the requested records to law enforcement

Answer

File a SAR related to the same activity

Answer

Consult with legal counsel about the subpoena