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Bank Secrecy Act and Anti-Money Laundering Flashcards

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

Read the first 6 Bank Secrecy Act and Anti-Money Laundering flashcards as text

  1. What is the minimum retention period for BSA-related records such as CTRs and SARs?

    Answer: 5 years

    BSA requires financial institutions to retain most BSA records for a minimum of five years.

  2. Under OFAC regulations, what must a bank do when a transaction involves a specially designated national (SDN)?

    Answer: Block or reject the transaction and report to OFAC

    When an OFAC match is identified, the bank must block or reject the transaction and file a report with OFAC.

  3. Which of the following is considered a 'red flag' for potential money laundering?

    Answer: Large cash deposits inconsistent with the customer's business

    Cash deposits inconsistent with a customer's stated business or income profile are a classic money laundering red flag.

  4. What does the term 'layering' refer to in the three stages of money laundering?

    Answer: Moving funds through complex transactions to obscure their origin

    Layering is the second stage of money laundering, involving complex transactions designed to disguise the audit trail.

  5. A bank's BSA/AML compliance program must be approved and overseen by whom?

    Answer: The board of directors or a designated committee

    BSA regulations require that the BSA/AML compliance program be approved and overseen by the board of directors or a senior committee.

  6. Enhanced Due Diligence (EDD) is required for which category of customers?

    Answer: High-risk customers such as foreign politically exposed persons

    EDD is required for higher-risk customers, including foreign politically exposed persons (PEPs) and high-risk business types.

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