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

Section 314(a) requires financial institutions to respond to FinCEN information requests within 5 business days of the request date.

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

Structuring involves deliberately breaking up transactions to stay below the $10,000 CTR reporting threshold, often on consecutive days.

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

SARs are intelligence tools that alert FinCEN to suspicious activity that may involve money laundering, fraud, or other financial crimes — not confirmed crimes.

Question 4

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

Accepted Answer

$10,000

Answer

Financial institutions must file a CTR with FinCEN for any cash transaction exceeding $10,000 in a single business day.

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

The Travel Rule (31 CFR 103.33) requires that banks include originator and beneficiary information for funds transfers of $3,000 or more.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Regulatory Compliance and AML 2