CFS Money Laundering & AML Compliance 2

Question 1

Under the Bank Secrecy Act, what is the threshold amount that triggers a Currency Transaction Report (CTR) filing requirement?

Accepted Answer

$10,000

Answer

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

Question 2

A bank customer deposits $9,500 on Monday and $9,500 on Tuesday to avoid CTR reporting. This behavior is known as:

Accepted Answer

Structuring (smurfing)

Answer

Structuring, also called smurfing, involves breaking up large cash transactions into smaller amounts to evade reporting thresholds.

Question 3

Which AML program element requires financial institutions to identify and verify the identity of customers opening new accounts?

Accepted Answer

Customer Due Diligence (CDD)

Answer

Customer Due Diligence requires institutions to collect and verify identifying information about customers to assess money laundering risk.

Question 4

The 'beneficial owner' rule under FinCEN's CDD regulations requires identifying individuals who own what minimum percentage of a legal entity customer?

Accepted Answer

25%

Answer

FinCEN requires financial institutions to identify and verify any individual who owns 25% or more of a legal entity customer.

Question 5

When a financial institution files a Suspicious Activity Report (SAR), which of the following is true?

Accepted Answer

The institution is prohibited from disclosing the SAR to the subject

Answer

Federal law prohibits financial institutions from disclosing that a SAR has been filed or the contents of a SAR to the subject of the report.

(CFS) Certified Fraud Specialist Practice Test

(CFS) Certified Fraud Specialist Practice Test

CFS Money Laundering & AML Compliance 2