Bank Secrecy Act & SAR Filing Flashcards
7 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Bank Secrecy Act & SAR Filing flashcards as text
An AML compliance officer notices a corporate account receiving multiple wire transfers from high-risk jurisdictions followed by immediate cash withdrawals. What stage of money laundering does the cash withdrawal represent?
Answer: Integration
Integration is the final stage where laundered funds re-enter the legitimate economy, often through cash withdrawals or purchases of assets.
Under BSA record-keeping rules, banks must retain records of wire transfers of $3,000 or more for at least:
Answer: 5 years
BSA regulations require financial institutions to retain wire transfer records of $3,000 or more for a minimum of five years.
Which of the following best describes a 'nested correspondent account' risk in BSA compliance?
Answer: A foreign bank using a U.S. correspondent bank to serve its own foreign bank clients
Nested correspondent accounts occur when a foreign bank's correspondent relationship is used by that bank's foreign bank clients, creating layers that obscure the ultimate customer's identity.
A BSA/AML program must include four pillars. Which of the following is NOT one of the required pillars?
Answer: Customer profit analysis
The four BSA pillars are internal controls, independent testing, a designated BSA officer, and ongoing employee training — customer profit analysis is not required.
When a suspicious activity involves an insider (bank employee), to whom should the SAR typically be addressed to avoid compromising the investigation?
Answer: Senior management above the suspect
When insider activity is suspected, the SAR process should bypass the suspect and be escalated to senior management above the involved employee to protect the investigation.
Under FinCEN's Customer Due Diligence (CDD) rule, what is the beneficial ownership threshold requiring identification?
Answer: 25% or more ownership
FinCEN's CDD rule requires financial institutions to identify and verify the identity of individuals who own 25% or more of a legal entity customer.
A casino is required to file a CTR for cash transactions over $10,000. Casinos file their BSA reports using which specific form?
Answer: FinCEN Form 103
Casinos use FinCEN Form 103 (the Currency Transaction Report by Casinos) when reporting cash transactions over $10,000.