Treasury Enforcement Agent Exam Risk Assessment & Management 5

Question 1

Under 31 CFR Part 1010, financial institutions must retain records of funds transfers of $3,000 or more for a minimum of:

Accepted Answer

5 years

Answer

BSA regulations require financial institutions to retain records of funds transfers of $3,000 or more for five years from the date of the transaction.

Question 2

A risk assessment framework that evaluates threats, vulnerabilities, and consequences is most closely aligned with which approach?

Accepted Answer

Threat-Vulnerability-Consequence (TVC) framework

Answer

The Threat-Vulnerability-Consequence framework specifically assesses what threats exist, how vulnerable a system is to them, and what the impact would be if exploited.

Question 3

A Treasury Enforcement Agent reviewing a nonbank financial institution finds no written AML policies or procedures. Under the BSA, this deficiency:

Accepted Answer

Constitutes a significant violation requiring mandatory corrective action

Answer

Written AML policies and procedures are a mandatory BSA requirement for covered financial institutions, and their absence constitutes a significant compliance deficiency subject to enforcement.

Question 4

When assessing geographic risk for a financial institution's customer base, which factor is LEAST relevant?

Accepted Answer

Number of customers who use mobile banking apps

Answer

Mobile banking app usage is a product-type consideration unrelated to geographic risk, which focuses on location-based factors like border proximity, high-risk jurisdictions, and secrecy havens.

Question 5

A financial institution's AML compliance officer discovers that an employee has been deliberately not filing SARs to protect a relationship with a high-revenue client. This situation MOST likely constitutes:

Accepted Answer

Willful violation of BSA requirements potentially constituting a federal crime

Answer

Deliberately suppressing SAR filings is a willful violation of the BSA, which can constitute a federal crime carrying criminal penalties for both the employee and the institution.

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Practice Test

Treasury Enforcement Agent Exam Risk Assessment & Management 5