Bank Secrecy Act and Anti-Money Laundering Flashcards

Under the BSA, which type of institution is required to file Suspicious Activity Reports?

Answer: Banks, credit unions, money services businesses, and broker-dealers

SAR filing requirements apply broadly to banks, credit unions, money services businesses, broker-dealers, and other covered institutions.

What is the purpose of a bank's AML risk assessment?

Answer: To identify and prioritize money laundering and terrorist financing risks

The AML risk assessment identifies, measures, and prioritizes the institution's exposure to money laundering and terrorist financing.

Which rule requires banks to collect and verify beneficial ownership information for legal entity customers?

Answer: FinCEN Beneficial Ownership Rule

FinCEN's Customer Due Diligence Final Rule requires banks to collect beneficial ownership information for legal entity customers.

A bank employee who knowingly assists a customer in structuring transactions to avoid reporting requirements may be charged with:

Answer: Federal criminal violations including conspiracy

Bank employees who assist in structuring can face federal criminal charges including conspiracy and aiding and abetting.

What is the primary purpose of a 'correspondent banking' due diligence program under BSA?

Answer: To assess the AML risks of foreign financial institutions using the bank's services

Correspondent banking due diligence assesses the AML controls and risk profile of foreign banks that access U.S. financial services.

Under the BSA's Monetary Instrument Log (MIL) requirements, banks must record cash purchases of monetary instruments between which dollar amounts?

Answer: $3,000 and $10,000

Banks must maintain a MIL for cash purchases of monetary instruments (e.g., cashier's checks, money orders) between $3,000 and $10,000.