CRCM Bank Secrecy Act and Anti-Money Laundering

Question 1

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

Accepted Answer

$10,000

Answer

The BSA requires CTR filing for cash transactions exceeding $10,000 in a single business day.

Question 2

Which federal agency has primary responsibility for administering the Bank Secrecy Act for depository institutions?

Accepted Answer

FinCEN

Answer

The Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, administers the BSA.

Question 3

A Suspicious Activity Report (SAR) must generally be filed within how many days of detecting a suspicious transaction?

Accepted Answer

30 days

Answer

SARs must be filed within 30 calendar days of the date of initial detection of suspicious activity.

Question 4

What is 'structuring' in the context of BSA compliance?

Accepted Answer

Breaking up transactions to avoid CTR filing requirements

Answer

Structuring (also called 'smurfing') is illegally breaking transactions into smaller amounts to avoid the $10,000 CTR threshold.

Question 5

Under the USA PATRIOT Act, banks must implement a Customer Identification Program (CIP) verifying identity for which customers?

Accepted Answer

All new account holders

Answer

CIP requirements apply to all new account holders regardless of account type or balance.

CRCM - Certified Regulatory Compliance Manager Practice Test