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Compliance and Banking Basics Flashcards

6 cards from real CCSR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A customer makes several cash deposits over a few days, with each deposit being $9,500. As a customer service representative, you notice this pattern. This activity is a potential indicator of:

    Answer: Structuring, an attempt to evade Currency Transaction Report (CTR) requirements.

    The Bank Secrecy Act (BSA) requires banks to file a Currency Transaction Report (CTR) for cash transactions exceeding $10,000. Structuring, also known as 'smurfing,' is the illegal practice of breaking up a single large transaction into smaller ones to stay below this reporting threshold and avoid scrutiny. A CSR's role is to recognize such patterns and report them internally per the bank's policy.

  2. Under the Gramm-Leach-Bliley Act (GLBA), which of the following is considered Non-Public Personal Information (NPI) that a CSR has a duty to protect?

    Answer: A customer's account balance and social security number.

    The Gramm-Leach-Bliley Act (GLBA) mandates that financial institutions protect their customers' Non-Public Personal Information (NPI). NPI includes any personally identifiable financial information, such as account numbers, balances, social security numbers, and transaction history. The other options are public information not covered by GLBA's privacy rule.

  3. What is the primary purpose of the Customer Identification Program (CIP) that banks are required to implement when opening a new account?

    Answer: To form a reasonable belief that the bank knows the true identity of the customer.

    The Customer Identification Program (CIP) is a requirement of the USA PATRIOT Act. Its main purpose is to verify the identity of individuals opening accounts to help combat money laundering, terrorism financing, and other financial crimes.

  4. A person calls claiming their mother is a customer and is too ill to call herself. The person asks for the mother's checking account balance to ensure a check will clear. The caller is not listed on the account. What is the most compliant action for the CSR to take?

    Answer: Politely state that due to privacy regulations, you can only share account information with the authorized account holder.

    The Gramm-Leach-Bliley Act (GLBA) strictly prohibits sharing Non-Public Personal Information (NPI) with unauthorized individuals, regardless of their relationship to the customer. The CSR must deny the request to remain compliant and protect the customer's privacy, even if the caller's intent seems harmless.

  5. A customer reports that their debit card was stolen yesterday and that two unauthorized transactions of $150 each have been posted to their account today. They report it immediately upon discovery. According to Regulation E, what is the customer's maximum liability?

    Answer: $50

    Regulation E (Electronic Fund Transfer Act) limits a consumer's liability for unauthorized debit card transactions. If the customer reports the loss or theft of their card within two business days of learning about it, their maximum liability is capped at $50.

  6. Which of the following scenarios would MOST LIKELY require a bank to file a Currency Transaction Report (CTR) with FinCEN?

    Answer: A customer withdraws $15,000 in cash from their checking account.

    The Bank Secrecy Act (BSA) requires financial institutions to file a Currency Transaction Report (CTR) for any transaction or series of transactions involving more than $10,000 in physical currency in a single business day. A cash withdrawal of $15,000 clearly meets this criterion. Checks, wire transfers, and debit card purchases are not considered currency transactions for CTR purposes.