Financial Crimes & Money Laundering Detection Flashcards
6 cards from real Treasury Enforcement Agent Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Financial Crimes & Money Laundering Detection flashcards as text
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?
Answer: Bank Secrecy Act
The Bank Secrecy Act (BSA) mandates financial institutions to file SARs for suspicious transactions of $5,000 or more.
What is 'smurfing' in the context of financial crimes?
Answer: Breaking large cash deposits into smaller amounts to avoid reporting thresholds
Smurfing (structuring) involves breaking large cash sums into smaller deposits below the $10,000 CTR reporting threshold to evade detection.
A Currency Transaction Report (CTR) must be filed for cash transactions exceeding which amount?
Answer: $10,000
Financial institutions must file a CTR with FinCEN for any cash transaction exceeding $10,000 in a single business day.
Which stage of money laundering involves disguising the illegal origins of funds by passing them through complex financial transactions?
Answer: Layering
Layering is the second stage of money laundering where funds are moved through complex transactions to obscure their criminal origin.
Which agency is primarily responsible for collecting and analyzing financial intelligence to combat money laundering in the US?
Answer: FinCEN
FinCEN (Financial Crimes Enforcement Network), a bureau of the US Treasury, is the primary US financial intelligence unit for anti-money laundering efforts.
What is a 'shell company' as used in financial crime schemes?
Answer: A legal entity with no real operations used to obscure asset ownership
A shell company is a legal entity with no real business operations, commonly used to conceal the true ownership of assets or funds.
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