CRCM Bank Secrecy Act and Anti-Money Laundering 2

Question 1

What is the minimum retention period for BSA-related records such as CTRs and SARs?

Accepted Answer

5 years

Answer

2 years

Answer

3 years

Answer

7 years

Question 2

Under OFAC regulations, what must a bank do when a transaction involves a specially designated national (SDN)?

Accepted Answer

Block or reject the transaction and report to OFAC

Answer

File a SAR within 10 days

Answer

Increase the customer's risk rating

Answer

Notify the customer of the screening result

Question 3

Which of the following is considered a 'red flag' for potential money laundering?

Accepted Answer

Large cash deposits inconsistent with the customer's business

Answer

A customer who always provides complete identification

Answer

Regular payroll deposits from the same employer

Answer

A customer who asks detailed questions about account features

Question 4

What does the term 'layering' refer to in the three stages of money laundering?

Accepted Answer

Moving funds through complex transactions to obscure their origin

Answer

Depositing illicit cash into financial accounts

Answer

Integrating laundered money back into the economy

Answer

Filing false tax returns to conceal income

Question 5

A bank's BSA/AML compliance program must be approved and overseen by whom?

Accepted Answer

The board of directors or a designated committee

Answer

The bank's external auditors

Answer

The state banking regulator only

Answer

FinCEN directly

Question 6

Enhanced Due Diligence (EDD) is required for which category of customers?

Accepted Answer

High-risk customers such as foreign politically exposed persons

Answer

Customers with accounts open less than one year

Answer

All customers with more than three accounts

Answer

Customers who use online banking exclusively