CRCM Bank Secrecy Act and Anti-Money Laundering 3

Question 1

Under the BSA, which type of institution is required to file Suspicious Activity Reports?

Accepted Answer

Banks, credit unions, money services businesses, and broker-dealers

Answer

Only national banks

Answer

Only federally insured institutions

Answer

Only institutions with assets over $1 billion

Question 2

What is the purpose of a bank's AML risk assessment?

Accepted Answer

To identify and prioritize money laundering and terrorist financing risks

Answer

To determine the bank's capital adequacy ratio

Answer

To set customer credit limits

Answer

To evaluate employee performance in compliance roles

Question 3

Which rule requires banks to collect and verify beneficial ownership information for legal entity customers?

Accepted Answer

FinCEN Beneficial Ownership Rule

Answer

Volcker Rule

Answer

UDAAP Rule

Answer

Regulation CC

Question 4

A bank employee who knowingly assists a customer in structuring transactions to avoid reporting requirements may be charged with:

Accepted Answer

Federal criminal violations including conspiracy

Answer

Negligence only

Answer

A civil violation only

Answer

A minor compliance infraction

Question 5

What is the primary purpose of a 'correspondent banking' due diligence program under BSA?

Accepted Answer

To assess the AML risks of foreign financial institutions using the bank's services

Answer

To verify domestic retail customers' identities

Answer

To monitor employee personal accounts

Answer

To screen mortgage applicants

Question 6

Under the BSA's Monetary Instrument Log (MIL) requirements, banks must record cash purchases of monetary instruments between which dollar amounts?

Accepted Answer

$3,000 and $10,000

Answer

$1,000 and $3,000

Answer

$5,000 and $25,000

Answer

$10,000 and $50,000