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

BSA requires financial institutions to retain most BSA records for a minimum of five 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

When an OFAC match is identified, the bank must block or reject the transaction and file a report with OFAC.

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

Cash deposits inconsistent with a customer's stated business or income profile are a classic money laundering red flag.

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

Layering is the second stage of money laundering, involving complex transactions designed to disguise the audit trail.

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

BSA regulations require that the BSA/AML compliance program be approved and overseen by the board of directors or a senior committee.

CRCM - Certified Regulatory Compliance Manager Practice Test