Treasury Enforcement Agent Exam Financial Crimes & Money Laundering Detection 1

Question 1

Which federal law requires financial institutions to file a Suspicious Activity Report (SAR) when a transaction involves $5,000 or more and is suspected to involve criminal activity?

Accepted Answer

Bank Secrecy Act

Answer

The Bank Secrecy Act (BSA) mandates financial institutions to file SARs for suspicious transactions of $5,000 or more.

Question 2

What is 'smurfing' in the context of financial crimes?

Accepted Answer

Breaking large cash deposits into smaller amounts to avoid reporting thresholds

Answer

Smurfing (structuring) involves breaking large cash sums into smaller deposits below the $10,000 CTR reporting threshold to evade detection.

Question 3

A Currency Transaction Report (CTR) must be filed for cash transactions exceeding which amount?

Accepted Answer

$10,000

Answer

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

Question 4

Which stage of money laundering involves disguising the illegal origins of funds by passing them through complex financial transactions?

Accepted Answer

Layering

Answer

Layering is the second stage of money laundering where funds are moved through complex transactions to obscure their criminal origin.

Question 5

Which agency is primarily responsible for collecting and analyzing financial intelligence to combat money laundering in the US?

Accepted Answer

FinCEN

Answer

FinCEN (Financial Crimes Enforcement Network), a bureau of the US Treasury, is the primary US financial intelligence unit for anti-money laundering efforts.

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Financial Crimes & Money Laundering Detection 1