CFA Bank Secrecy Act & SAR Filing 2

Question 1

Under the Bank Secrecy Act, what is the minimum threshold for filing a Currency Transaction Report (CTR)?

Accepted Answer

$10,000

Answer

Financial institutions must file a CTR for cash transactions exceeding $10,000 in a single business day.

Question 2

A bank customer conducts five separate $3,000 cash deposits on the same day to avoid CTR reporting. This activity is known as:

Accepted Answer

Structuring (smurfing)

Answer

Structuring, or smurfing, involves breaking up transactions to stay below reporting thresholds, which is itself a federal crime under the BSA.

Question 3

Which federal agency serves as the administrator of the Bank Secrecy Act and receives BSA filings?

Accepted Answer

FinCEN

Answer

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury, administers the BSA and collects BSA reports.

Question 4

A SAR must generally be filed within how many calendar days after a suspicious activity is initially detected?

Accepted Answer

30 days

Answer

Financial institutions must file a SAR within 30 calendar days of initial detection of suspicious activity, with a 60-day extension if no suspect is identified.

Question 5

Which of the following is NOT a covered financial institution required to file SARs under BSA regulations?

Accepted Answer

Retail clothing stores

Answer

Retail businesses like clothing stores are not covered financial institutions under the BSA and have no SAR filing obligation.

CFA Practice Test

CFA Practice Test

CFA Bank Secrecy Act & SAR Filing 2