CRB Branch Operations & Management Flashcards

What is the purpose of a Suspicious Activity Report (SAR)?

Answer: To notify FinCEN of transactions suspected to involve money laundering or other financial crimes

SARs are filed with FinCEN when a bank suspects transactions involve illegal activity such as money laundering, fraud, or terrorist financing.

A new teller notices a regular customer making several cash deposits just under $10,000 on consecutive days. What should the teller do?

Answer: Report the pattern internally as potential structuring to the compliance officer or BSA officer

Consistent deposits just below the CTR threshold are a classic structuring red flag that must be escalated to the BSA/compliance officer for review.

What does the Expedited Funds Availability Act (Regulation CC) govern?

Answer: The maximum time banks can place holds on deposited checks

Regulation CC establishes maximum hold periods banks may impose on deposited checks, ensuring customers have timely access to their funds.

In a retail branch, what is the role of a 'dual control' procedure?

Answer: Requiring two authorized employees to jointly perform sensitive tasks like vault access

Dual control reduces the risk of theft or error by requiring two employees to jointly complete high-risk tasks such as opening the vault or processing large cash shipments.

What is the primary goal of a branch's referral program?

Answer: To grow the bank's customer base and deepen existing customer relationships through staff-driven introductions

Referral programs incentivize staff to connect customers with additional products or refer prospects, driving growth and relationship depth.

What is a 'stop payment' order on a check?

Answer: A customer's instruction to the bank not to honor a specific check they have issued

A stop payment is a customer-initiated request directing the bank to refuse payment of a specific check before it clears.