CFA Bank Secrecy Act & SAR Filing 3

Question 1

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?

Accepted Answer

Integration

Answer

Integration is the final stage where laundered funds re-enter the legitimate economy, often through cash withdrawals or purchases of assets.

Question 2

Under BSA record-keeping rules, banks must retain records of wire transfers of $3,000 or more for at least:

Accepted Answer

5 years

Answer

BSA regulations require financial institutions to retain wire transfer records of $3,000 or more for a minimum of five years.

Question 3

Which of the following best describes a 'nested correspondent account' risk in BSA compliance?

Accepted Answer

A foreign bank using a U.S. correspondent bank to serve its own foreign bank clients

Answer

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.

Question 4

A BSA/AML program must include four pillars. Which of the following is NOT one of the required pillars?

Accepted Answer

Customer profit analysis

Answer

The four BSA pillars are internal controls, independent testing, a designated BSA officer, and ongoing employee training — customer profit analysis is not required.

Question 5

When a suspicious activity involves an insider (bank employee), to whom should the SAR typically be addressed to avoid compromising the investigation?

Accepted Answer

Senior management above the suspect

Answer

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.

CFA Practice Test

CFA Practice Test

CFA Bank Secrecy Act & SAR Filing 3