CSCP Anti-Money Laundering & Financial Crimes

Question 1

Under the Bank Secrecy Act (BSA), broker-dealers are required to file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?

Accepted Answer

30 calendar days

Answer

The BSA requires broker-dealers to file a SAR within 30 calendar days of initial detection of a suspicious transaction.

Question 2

Which of the following is the primary federal law that forms the foundation of the U.S. anti-money laundering regulatory framework?

Accepted Answer

Bank Secrecy Act of 1970

Answer

The Bank Secrecy Act of 1970 is the foundational U.S. AML law, requiring financial institutions to assist government agencies in detecting and preventing money laundering.

Question 3

Which federal agency is primarily responsible for administering and enforcing the Bank Secrecy Act?

Accepted Answer

Financial Crimes Enforcement Network (FinCEN)

Answer

FinCEN, a bureau of the U.S. Department of the Treasury, is the primary agency responsible for administering the BSA and combating money laundering.

Question 4

The three stages of money laundering, in the correct order, are:

Accepted Answer

Placement, Layering, Integration

Answer

Money laundering occurs in three stages: Placement (introducing illicit funds into the financial system), Layering (concealing the trail), and Integration (re-entering funds as legitimate).

Question 5

Under FINRA Rule 3310, which of the following is a required element of a broker-dealer's AML compliance program?

Accepted Answer

Independent testing of the AML program

Answer

FINRA Rule 3310 requires broker-dealers to conduct independent testing of their AML program, along with training, internal controls, and designation of an AML compliance officer.

(CSCP) Certified Securities Compliance Professional Practice Test

(CSCP) Certified Securities Compliance Professional Practice Test

CSCP Anti-Money Laundering & Financial Crimes