Do You Know About Bank Secrecy Act? Quiz
Do you know about the Bank Secrecy Act? Could you pass this quiz? The Bank Secrecy Act is a piece of legislation enacted in 1970, which is meant to keep banks from being a place where criminal launder money. Under this act, US banks are required to submit documentation for any transaction that is of $10,000 or more. Take this quiz and look at how much you know about the Bank Secrecy Act.
- 1.What are the three independent steps of money laundering?
- A.
Placement- Physically placing bulk cash proceeds
- B.
Washing- Making sure the money is clean
- C.
Layering- Separating the proceeds of the crimincal activity from their origins through layers of complex financial transactions.
- D.
Spending- Spend that cash!
- E.
Integration- Providing an apparently legitimate explanation for the illicit proceeds.
- 2.The USA PATRIOT Act was adopted into the Bank Secrecy Act.
- A.
True
- B.
False
- 3.A CTR( Currency Transaction Report) must be filed for cash transactions of $10,000.01 or more. How long should a copy of this form be retained?
- A.
100 years
- B.
Eternally
- C.
You can toss it right away
- D.
5 years
- 4.Choose all that are potential signs of money laundering.
- A.
Extremely clean cash.
- B.
Member tries to evade reporting requirements.
- C.
Insufficient or suspicious information.
- D.
Cash that smells incredibly fresh.
- E.
Unusual fund transfer activities.
- F.
Sudden changes in transaction patterns.
- G.
Abnormal business activities.
- 5.SAR stands for __________________________.
- 6.A transaction "on behalf of" shall include joint account holders.
- A.
True
- B.
False
- 7.The Member Identification Program will consider the the following risk factors for opening individual or business accounts:
- A.
Types of accounts the CU offers, methods of establishing account, and verification procedures
- B.
Types of accounts the CU offers, length of time the person has lived here, and personal discretion
- C.
Amount of money they have, methods of establishing account, and verification procedures
- D.
None of the above.
- 8.MCLA stands for Money Laundering Control Action.
- A.
True
- B.
False
- 9.We will retain copies of or have access to the following items for five years:
- A.
Signature cards
- B.
Transaction History
- C.
Checks Issued by GBFCU
- D.
Record of COD- purchase AND withdrawal
- E.
Members pizza delivery history.
- F.
Any foreign item over $10,000 received or sent by us.
- G.
Documentation of cash recieved.
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