Treasury Enforcement Agent Exam Regulatory Frameworks & Compliance 5

Question 1

Under the Anti-Money Laundering Act of 2020 (AMLA), Congress made which significant change to BSA penalties?

Accepted Answer

Increased civil and criminal penalties and extended whistleblower protections

Answer

The AMLA significantly increased BSA penalties and strengthened whistleblower protections to incentivize reporting of AML violations.

Question 2

A financial institution files a SAR. What general rule governs whether the institution can disclose to the subject that a SAR was filed?

Accepted Answer

They are prohibited from disclosing to the subject or any person involved in the reported transaction

Answer

BSA regulations contain a strict 'tipping off' prohibition — institutions may not inform the subject of a SAR or any person involved that a report was made.

Question 3

The Corporate Transparency Act (CTA), enacted as part of the AMLA 2020, requires many companies to report beneficial ownership information to which agency?

Accepted Answer

FinCEN

Answer

The CTA requires covered companies to file beneficial ownership information reports with FinCEN to combat anonymous shell company abuse.

Question 4

When OFAC designates an entity to the SDN list, what happens to that entity's property and interests in property subject to U.S. jurisdiction?

Accepted Answer

They are frozen and blocked from being transferred, paid, exported, or withdrawn

Answer

OFAC designation results in a blocking order that freezes the SDN's assets subject to U.S. jurisdiction, prohibiting any transactions involving them.

Question 5

Under the Gramm-Leach-Bliley Act (GLBA), financial institutions must provide customers with privacy notices describing their information sharing practices. This requirement is primarily enforced in relation to AML because:

Accepted Answer

It establishes baseline data governance that supports accurate customer identification and monitoring

Answer

GLBA's data governance requirements help ensure financial institutions maintain accurate, reliable customer information essential for effective AML/KYC programs.

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Regulatory Frameworks & Compliance 5