RCMS Anti-Money Laundering & KYC 2

Question 1

Under the Bank Secrecy Act, what is the minimum threshold for filing a Currency Transaction Report (CTR)?

Accepted Answer

$10,000

Answer

Financial institutions must file a CTR for any cash transaction exceeding $10,000 in a single business day.

Question 2

Which AML red flag best describes 'structuring'?

Accepted Answer

Breaking large cash transactions into smaller amounts to avoid reporting thresholds

Answer

Structuring (also called 'smurfing') involves deliberately splitting transactions below the $10,000 CTR threshold to avoid detection.

Question 3

What is the primary purpose of a Suspicious Activity Report (SAR)?

Accepted Answer

To alert FinCEN of transactions suspected to involve illicit funds or criminal activity

Answer

SARs are filed with FinCEN to report transactions suspected of involving money laundering, fraud, or other criminal activity.

Question 4

In AML compliance, what does 'layering' refer to?

Accepted Answer

A series of complex transactions designed to disguise the audit trail of illicit funds

Answer

Layering is the second stage of money laundering, involving complex financial transactions to obscure the origin of dirty money.

Question 5

Which government agency in the U.S. has primary authority to enforce BSA/AML compliance for banks?

Accepted Answer

FinCEN

Answer

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury, administers and enforces the BSA.

(RCMS) Registered Compliance Management Specialist Certification Practice Test