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

SAR filing requirements apply broadly to banks, credit unions, money services businesses, broker-dealers, and other covered institutions.

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

The AML risk assessment identifies, measures, and prioritizes the institution's exposure to money laundering and terrorist financing.

Question 3

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

Accepted Answer

FinCEN Beneficial Ownership Rule

Answer

FinCEN's Customer Due Diligence Final Rule requires banks to collect beneficial ownership information for legal entity customers.

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

Bank employees who assist in structuring can face federal criminal charges including conspiracy and aiding and abetting.

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

Correspondent banking due diligence assesses the AML controls and risk profile of foreign banks that access U.S. financial services.

CRCM - Certified Regulatory Compliance Manager Practice Test