CRB Branch Operations & Management Flashcards

Which document is required to open a new business checking account for a US-based LLC?

Answer: Articles of Organization and an EIN (Employer Identification Number)

LLCs must provide formation documents (Articles of Organization) and their EIN to satisfy business account CIP requirements.

What is the primary purpose of a branch's daily cash balancing procedure?

Answer: To ensure actual cash on hand matches recorded transactions and identify discrepancies

Daily cash balancing reconciles physical cash against transaction records, detecting errors or shortages before they compound.

Under the Bank Secrecy Act, a Currency Transaction Report (CTR) must be filed for cash transactions exceeding what threshold?

Answer: $10,000

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

What is 'structuring' in banking compliance terms?

Answer: Deliberately breaking up transactions to avoid triggering CTR reporting thresholds

Structuring (also called 'smurfing') is illegal and involves splitting large cash transactions to stay below the $10,000 CTR threshold.

What is the standard opening procedure a teller should follow before beginning transactions for the day?

Answer: Begin accepting customer transactions immediately after clocking in

Tellers must verify their opening cash balance against the assigned amount before any transactions to establish an accurate starting point for balancing.

Which concept describes a bank's obligation to verify the identity of customers opening new accounts?

Answer: Know Your Customer (KYC) / Customer Identification Program (CIP)

KYC/CIP requirements, mandated by the USA PATRIOT Act, require banks to collect and verify identifying information from all new account holders.