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Bank Secrecy ACT 2010

20 Questions
ACT Quizzes & Trivia

Mandatory Compliance training test

Questions and Answers
  • 1. 
    The BSA policy is required to be in writing and approved by the Board of Directors.
    • A. 

      TRUE

    • B. 

      FALSE

  • 2. 
    Which action is NOT part of the four basic components of BSA compliance?
    • A. 

      Designating an individual to be responsible for overseeing the BSA program

    • B. 

      Providing annual training for all employees as well as the Board of Directors

    • C. 

      Testing of internal controls

    • D. 

      Advertising or notifying the public that the bank is in compliance with the BSA requirements

  • 3. 
    What are the three fundamental components of risk assessment? 
    • A. 

      Monitor, Advise and Document

    • B. 

      Assess, Document, and Inform

    • C. 

      Detect, Deter and Report

    • D. 

      Question, Follow-Through and Enforce

  • 4. 
    What are two reasons why detecting terrorist financing is difficult?
    • A. 

      Terrorist transactions are often not complex and do not involve large sums of money

    • B. 

      Terrorist often finance their activities through both legitimate and unlawful sources

    • C. 

      Terrorists do not use the same money laundering techniques as other criminals use

    • D. 

      Terrorists do not open bank accounts so banks do not have to be concerned about them

  • 5. 
    Money laundering is...
    • A. 

      A method of independent testing that is conducted to locate funding of criminal activities.

    • B. 

      The criminal practice of filtering money through a bank and involves placement, layering and integration.

    • C. 

      Another name for check fraud and wire scams.

    • D. 

      Removing damaged or "dirty" cash from circulation.

  • 6. 
    Bank employees are expected to adhere to specific actions to be in compliance with the BSA. Which of the following is NOT a part of maintaining the quality of our BSA compliance?
    • A. 

      File Currency Transaction Reports for cash transactions over $10,000.

    • B. 

      File Suspicious Activity Reports for any transaction that appears suspicious.

    • C. 

      Keep all BSA records for a period of at least five years

    • D. 

      Form a reasonable belief as to the identity of customers at account opening

    • E. 

      Conduct a follow-up call with clients after a CTR has been filed.

  • 7. 
    The Bank, Board of Directors and employees can face serious consequences if they fail to follow procedures or adhere to the BSA requirements. All but one of the following can be a consequence of non-compliance.
    • A. 

      Cease and Desist Orders

    • B. 

      Restrictions on mergers, acquisitions and branching

    • C. 

      Terminate institutions deposit insurance

    • D. 

      Personal fines and jail time for employees, and Officers of the bank

    • E. 

      Restrict new account openings and deposit amounts

  • 8. 
    What is the fundamental part of BSA that has procedures in place that help you identify your customer and assist the bank in monitoring both normal and unusual activity?
    • A. 

      Customer Identification Program (CIP)

    • B. 

      Red Flag

    • C. 

      USA Patriot Act

    • D. 

      Risk Assessment

  • 9. 
    If an individual is opening a new account and you cannot form a reasonable basis that you know the customer's true identity, you should...
    • A. 

      Open the account and ask them to produce more proof in a 24 hour period.

    • B. 

      Contact your Manager to approve opening the account

    • C. 

      Do not open the account and provide an adverse action notice

    • D. 

      Open the account but place a warning on the system and holds on all deposits until a relationship is established

  • 10. 
    Prior to opening an account, we are required to run an OFAC (Office of Foreign Asset Control) scan for matches to the Specially Designated Nationals and Blocked Persons (SDN) list.  
    • A. 

      True

    • B. 

      False

  • 11. 
    Banks are required by BSA to keep records of certain transactions. Which option describes records BSA requires banks to keep?
    • A. 

      Wire transfers of $1,000 or more

    • B. 

      Currency transactions exceeding $5,000

    • C. 

      Negotiable instrument sales for cash in amounts of $3,000 to $10,000

    • D. 

      List of individuals in the US illegally

  • 12. 
    Which scenario best describes a multiple transaction requiring a CTR under the BSA?
    • A. 

      A new customer deposits $7,500 cash in a Money Market account and $500 cash into a checking account

    • B. 

      A well established customer makes three separate cash deposits on the same day at three different locations. A $4,570 deposit into a savings account, $4,020 into a Money Market account and $1,120 into a regular checking account.

    • C. 

      A customer deposits a $5,000 check, a $4,000 check and $7,000 cash into the same account.

    • D. 

      A business owner deposits $5,000 cash in the night depository and comes in later that same day to deposit $6,202 in cash to a different account.

  • 13. 
    Who is required to complete the CTR form when the criteria is meet?
    • A. 

      Deposit Operations

    • B. 

      Teller or employee conducting the transaction

    • C. 

      BSA or Alternate BSA Officer

    • D. 

      Manager of the location where the transaction took place

  • 14. 
    Bankers must complete a Suspiciou Activity Report (SAR) in certain situations. What is one situation in which you should consider completing a SAR?
    • A. 

      The customer is unknown at the bank

    • B. 

      The amount of the transaction is reduced by the customer to avoid a CTR

    • C. 

      Customer leaves the bank angry because ID was requested to cash a check

    • D. 

      Amount of transaction is over $10,000 in cash

  • 15. 
    You must inform the customer when a Suspicious Activity Report (SAR) is filed.
    • A. 

      True

    • B. 

      False

  • 16. 
    There are three key points to communicate to customers if they ask why a CTR is being completed. Which of the following would NOT be an appropriate communication point.
    • A. 

      Why the report is being completed for this particular transaction

    • B. 

      What the BSA requirement is for completing the report

    • C. 

      How completing the report will/will not affect the transaction

    • D. 

      Explain how the report helps to catch criminal activities

  • 17. 
    Since the reporting of certain types of transactions such as regular or frequent currency transactions with legitimate businesses is not likely to be useful to law enforcement agencies, the bank is allowed to grant appropriate reporting exemptions to designated types of transactions and customers.
    • A. 

      True

    • B. 

      False

  • 18. 
    All of the following statements are true concerning CTR exemptions except one. Mark the incorrect statement.
    • A. 

      Exemptions must be reviewed annually for exemption renewal

    • B. 

      BSA Officer must approve and review exemption requests

    • C. 

      Auto Sales and Leasing is an eligible business for exemption

    • D. 

      Customer must have a "transaction account"

  • 19. 
    It is Signature Banks policy to sell monetary instruments (Official Check, Money Order, Traveler's Checks, etc) to non-customers.
    • A. 

      True

    • B. 

      False

  • 20. 
    The bank realizes the risks associated with exposure with sharing information. The BSA Officer will handle all requests and Signature Bank has opted NOT to share information with other financial institutions at this time.
    • A. 

      True

    • B. 

      Flase