AML Compliance: Castle Financial Services Test! Trivia Quiz

1. The computer record should have the consumer’s name, address, telephone number, date of birth, and identification number.

True

False

The computer record should contain the consumer's personal information such as their name, address, telephone number, date of birth, and identification number. This information is essential for accurately identifying and contacting the consumer. Storing these details in a computer record allows for easy access and retrieval when needed. Therefore, the statement is true.

Explanation

The computer record should contain the consumer's personal information such as their name, address, telephone number, date of birth, and identification number. This information is essential for accurately identifying and contacting the consumer. Storing these details in a computer record allows for easy access and retrieval when needed. Therefore, the statement is true.

2. Suspicious activity is: all transactions that are in excess of $ 2,000 and suspected of involving money laundering or other crimes. Any suspicious transaction is to be reported by filing a:

Customer Identification Report (CIR)

Money Service Business Report (MSBR)

Suspicious Activity Report (SAR)

A Suspicious Activity Report (SAR) is the correct form to be filed when a suspicious transaction is identified. This report is used to alert authorities about transactions that exceed $2,000 and are suspected of being involved in money laundering or other criminal activities. The SAR helps financial institutions and law enforcement agencies to monitor and investigate potential illegal activities, ensuring the safety and integrity of the financial system.

Explanation

A Suspicious Activity Report (SAR) is the correct form to be filed when a suspicious transaction is identified. This report is used to alert authorities about transactions that exceed $2,000 and are suspected of being involved in money laundering or other criminal activities. The SAR helps financial institutions and law enforcement agencies to monitor and investigate potential illegal activities, ensuring the safety and integrity of the financial system.

3. Acceptable forms of identifications are:

Current photo driver’s licenses

Passports

State issued identification cards

All of the above

The acceptable forms of identification include current photo driver's licenses, passports, and state-issued identification cards. Therefore, the correct answer is "All of the above" because all of these options are considered acceptable forms of identification.

Explanation

The acceptable forms of identification include current photo driver's licenses, passports, and state-issued identification cards. Therefore, the correct answer is "All of the above" because all of these options are considered acceptable forms of identification.

4. The __________________ will check the accuracy, completeness and file all SARs and CTRs with the IRS

Store Manager

Compliance Officer

Office Manager

A compliance officer is responsible for ensuring that an organization or business adheres to all relevant laws, regulations, and policies. In the context of the given question, a compliance officer would be the appropriate person to check the accuracy and completeness of SARs (Suspicious Activity Reports) and CTRs (Currency Transaction Reports) and file them with the IRS (Internal Revenue Service). This role requires a deep understanding of the regulatory requirements and the ability to ensure that all necessary documentation is properly filed.

Explanation

A compliance officer is responsible for ensuring that an organization or business adheres to all relevant laws, regulations, and policies. In the context of the given question, a compliance officer would be the appropriate person to check the accuracy and completeness of SARs (Suspicious Activity Reports) and CTRs (Currency Transaction Reports) and file them with the IRS (Internal Revenue Service). This role requires a deep understanding of the regulatory requirements and the ability to ensure that all necessary documentation is properly filed.

5. The CTR must be complete and accurate. All required consumer information should be obtained from the consumer before you complete the transaction. If the consumer cannot or will not provide responsive and complete information, the transaction should:

Completed with a note to get the information later

Not be completed

Change the amount to bypass the report

The CTR (Currency Transaction Report) must be complete and accurate, meaning that all required consumer information should be obtained before completing the transaction. If the consumer cannot or will not provide the necessary information, the transaction should not be completed. This is because incomplete or inaccurate information could lead to legal issues or regulatory non-compliance. Therefore, it is important to ensure that all required information is obtained before proceeding with the transaction.

Explanation

The CTR (Currency Transaction Report) must be complete and accurate, meaning that all required consumer information should be obtained before completing the transaction. If the consumer cannot or will not provide the necessary information, the transaction should not be completed. This is because incomplete or inaccurate information could lead to legal issues or regulatory non-compliance. Therefore, it is important to ensure that all required information is obtained before proceeding with the transaction.

6. It is illegal for a check casher to inform any person or party to a suspicious transaction that the check casher has reported, or intends to report, a suspicious transaction

True

False

A check casher is prohibited by law from disclosing to anyone involved in a suspicious transaction that they have reported or plan to report the transaction. This is to ensure the integrity of the reporting process and prevent potential interference or obstruction of investigations into suspicious activities. By keeping this information confidential, authorities can effectively investigate and take appropriate action against potentially illegal activities.

Explanation

A check casher is prohibited by law from disclosing to anyone involved in a suspicious transaction that they have reported or plan to report the transaction. This is to ensure the integrity of the reporting process and prevent potential interference or obstruction of investigations into suspicious activities. By keeping this information confidential, authorities can effectively investigate and take appropriate action against potentially illegal activities.

7. The following additional information must be acquired for sale of monetary instruments over $ 3,000:

The consumer’s social security number, date of birth and identification number

The date the consumer purchased the instrument

The Serial number and amount of each instrument

All of the above

The correct answer is "All of the above." This means that all of the listed information must be acquired for the sale of monetary instruments over $3,000. This includes the consumer's social security number, date of birth, and identification number, as well as the date of purchase, the serial number, and the amount of each instrument.

Explanation

The correct answer is "All of the above." This means that all of the listed information must be acquired for the sale of monetary instruments over $3,000. This includes the consumer's social security number, date of birth, and identification number, as well as the date of purchase, the serial number, and the amount of each instrument.

8. For all receive wire transfer of $ 3,000 or more, the Company must verify the identification of the recipient as well as Date of birth, _______________ and occupation.

Social Security Number

Driver’s License

MTCN (Money Transfer Control Number)

For all receive wire transfers of $3,000 or more, the company must verify the identification of the recipient as well as their date of birth, occupation, and Social Security Number. This is likely because the Social Security Number is a unique identifier for individuals in the United States and is commonly used for identity verification purposes. By requiring the recipient's Social Security Number, the company can ensure that the wire transfer is being sent to the correct person and comply with regulations regarding financial transactions.

Explanation

For all receive wire transfers of $3,000 or more, the company must verify the identification of the recipient as well as their date of birth, occupation, and Social Security Number. This is likely because the Social Security Number is a unique identifier for individuals in the United States and is commonly used for identity verification purposes. By requiring the recipient's Social Security Number, the company can ensure that the wire transfer is being sent to the correct person and comply with regulations regarding financial transactions.

9. Copies of Currency Transaction Reports (“CTR”) must be maintained for a period of:

3 years

5 years

10 years

Currency Transaction Reports (CTRs) are documents that financial institutions are required to file with the government to report certain types of transactions that involve cash. These reports are important for monitoring and preventing money laundering and other financial crimes. The correct answer is 5 years because financial institutions are required to maintain copies of CTRs for a period of 5 years. This ensures that the information is accessible for regulatory purposes and can be used as evidence if needed in investigations or audits.

Explanation

Currency Transaction Reports (CTRs) are documents that financial institutions are required to file with the government to report certain types of transactions that involve cash. These reports are important for monitoring and preventing money laundering and other financial crimes. The correct answer is 5 years because financial institutions are required to maintain copies of CTRs for a period of 5 years. This ensures that the information is accessible for regulatory purposes and can be used as evidence if needed in investigations or audits.

10. All currency (cash) transactions over $ 10,000 conducted by or on behalf of the same person during the same business day must be reported by filing a:

SAR (Suspicious Activity Report)

CTR (Currency Transactions Report)

CCR (Castle’s Currency Report)

The correct answer is CTR (Currency Transactions Report). This report is required for all currency transactions over $10,000 conducted by or on behalf of the same person during the same business day. It is a measure taken to prevent money laundering and other illegal activities. A SAR (Suspicious Activity Report) is filed when there is suspicion of illegal activity, while CCR (Castle's Currency Report) is not a recognized term in this context.

Explanation

The correct answer is CTR (Currency Transactions Report). This report is required for all currency transactions over $10,000 conducted by or on behalf of the same person during the same business day. It is a measure taken to prevent money laundering and other illegal activities. A SAR (Suspicious Activity Report) is filed when there is suspicion of illegal activity, while CCR (Castle's Currency Report) is not a recognized term in this context.

11. All documentation linked to a SAR must be maintained for a period of:

2 years

5 years

10 years

All documentation linked to a SAR must be maintained for a period of 5 years. This is important to ensure that the documentation is readily available for any future reference or investigation related to the SAR. It also allows for proper record-keeping and compliance with regulatory requirements. By keeping the documentation for 5 years, organizations can demonstrate their commitment to transparency, accountability, and adherence to anti-money laundering and counter-terrorism financing regulations.

Explanation

All documentation linked to a SAR must be maintained for a period of 5 years. This is important to ensure that the documentation is readily available for any future reference or investigation related to the SAR. It also allows for proper record-keeping and compliance with regulatory requirements. By keeping the documentation for 5 years, organizations can demonstrate their commitment to transparency, accountability, and adherence to anti-money laundering and counter-terrorism financing regulations.

12. It is not illegal for a check casher to engage in “willful blindness,” i.e., to process or facilitate a transaction or ongoing scheme that the check casher knows, or reasonably should know, involves money laundering or other illegal conduct

True

False

It is illegal for a check casher to engage in "willful blindness" and knowingly process or facilitate a transaction or ongoing scheme that involves money laundering or other illegal conduct. Therefore, the correct answer is False.

Explanation

It is illegal for a check casher to engage in "willful blindness" and knowingly process or facilitate a transaction or ongoing scheme that involves money laundering or other illegal conduct. Therefore, the correct answer is False.

13. You must verify the identification of the sender for all wire transfers of

$ 1,000 or more

$ 2,000 or more

$ 2,500 or more

The correct answer is $1,000 or more. This means that for any wire transfer of $1,000 or more, you must verify the identification of the sender. Verifying the identification helps ensure the legitimacy of the transaction and prevents fraudulent activities. It is a standard practice in financial institutions to have this requirement in place for higher value transactions to mitigate the risk of money laundering or other illegal activities.

Explanation

The correct answer is $1,000 or more. This means that for any wire transfer of $1,000 or more, you must verify the identification of the sender. Verifying the identification helps ensure the legitimacy of the transaction and prevents fraudulent activities. It is a standard practice in financial institutions to have this requirement in place for higher value transactions to mitigate the risk of money laundering or other illegal activities.

14. If “structuring” (i.e., an attempt to evade CTR filing thresholds by breaking up transactions) is suspected, the consumer should not be questioned as to number, nature and dollar amount of transaction performed that business day

True

False

If "structuring" is suspected, it is important to question the consumer about the number, nature, and dollar amount of transactions performed that business day. This is because structuring involves breaking up transactions to avoid reaching the threshold that requires reporting to the authorities. By questioning the consumer, it helps to gather information and determine if structuring is indeed taking place. Therefore, the correct answer is False.

Explanation

If "structuring" is suspected, it is important to question the consumer about the number, nature, and dollar amount of transactions performed that business day. This is because structuring involves breaking up transactions to avoid reaching the threshold that requires reporting to the authorities. By questioning the consumer, it helps to gather information and determine if structuring is indeed taking place. Therefore, the correct answer is False.

15. Proper identification is required for the purchase of money orders when the transaction exceeds

$ 1,000

$ 3,000

$ 5,000

Proper identification is required for the purchase of money orders when the transaction exceeds $3,000. This means that if someone wants to purchase a money order with a value of $3,000 or more, they will need to provide proper identification. This requirement helps prevent money laundering and other fraudulent activities by ensuring that individuals are accountable for large financial transactions.

Explanation

Proper identification is required for the purchase of money orders when the transaction exceeds $3,000. This means that if someone wants to purchase a money order with a value of $3,000 or more, they will need to provide proper identification. This requirement helps prevent money laundering and other fraudulent activities by ensuring that individuals are accountable for large financial transactions.

16. Cash-in transactions are counted separately from cash-out transactions. Thus a person must have over $ 10,000 in either cash-in or cash out transactions in order for a CTR to be required

True

False

Cash-in transactions and cash-out transactions are treated separately when determining if a Currency Transaction Report (CTR) is required. This means that if a person has over $10,000 in either cash-in or cash-out transactions, a CTR will be required. In other words, if a person has $9,000 in cash-in transactions and $2,000 in cash-out transactions, a CTR would still be required because the cash-in transactions alone exceed $10,000. Therefore, the statement "Cash-in transactions are counted separately from cash-out transactions. Thus a person must have over $10,000 in either cash-in or cash out transactions in order for a CTR to be required" is true.

Explanation

Cash-in transactions and cash-out transactions are treated separately when determining if a Currency Transaction Report (CTR) is required. This means that if a person has over $10,000 in either cash-in or cash-out transactions, a CTR will be required. In other words, if a person has $9,000 in cash-in transactions and $2,000 in cash-out transactions, a CTR would still be required because the cash-in transactions alone exceed $10,000. Therefore, the statement "Cash-in transactions are counted separately from cash-out transactions. Thus a person must have over $10,000 in either cash-in or cash out transactions in order for a CTR to be required" is true.

17. Detailed identification and a log/file are required for all monetary instrument sales over:

$ 1,000 or more

$ 2,500 or more

$ 3,000 or more

The correct answer is $3,000 or more because detailed identification and a log/file are required for all monetary instrument sales over this amount. This means that any transaction involving the sale of monetary instruments, such as checks or money orders, that exceeds $3,000 requires the seller to collect detailed identification information from the buyer and maintain a log or file documenting the transaction. This is likely a regulatory requirement aimed at preventing money laundering or other illegal financial activities.

Explanation

The correct answer is $3,000 or more because detailed identification and a log/file are required for all monetary instrument sales over this amount. This means that any transaction involving the sale of monetary instruments, such as checks or money orders, that exceeds $3,000 requires the seller to collect detailed identification information from the buyer and maintain a log or file documenting the transaction. This is likely a regulatory requirement aimed at preventing money laundering or other illegal financial activities.

18. A Commercial check is a check made payable to a company. All reporting laws will not apply to commercial check cashing transactions, like any other natural check

True

False

This statement is false. Commercial checks are subject to reporting laws, just like any other type of check.

Explanation

This statement is false. Commercial checks are subject to reporting laws, just like any other type of check.

19. The SAR must be filed within ____________ after the date of the initial detection by the MSB.

15 days

30 days

35 days

The SAR (Suspicious Activity Report) must be filed within 30 days after the date of the initial detection by the MSB (Money Services Business). This means that once the MSB becomes aware of any suspicious activity, they have a maximum of 30 days to submit a report to the appropriate authorities. This timeframe allows for timely reporting and investigation of potential money laundering or other illegal financial activities.

Explanation

The SAR (Suspicious Activity Report) must be filed within 30 days after the date of the initial detection by the MSB (Money Services Business). This means that once the MSB becomes aware of any suspicious activity, they have a maximum of 30 days to submit a report to the appropriate authorities. This timeframe allows for timely reporting and investigation of potential money laundering or other illegal financial activities.