Could You Pass This Compliance Trivia Test?

2.

When customers use multiple transaction to avoid providing proper identification it is called:

Splitting
Shifting
Structuring
None of the above

Correct Answer

A. Structuring

Explanation

Structuring refers to the practice of breaking down large transactions into smaller ones to avoid detection or reporting requirements. In this case, customers are using multiple transactions to avoid providing proper identification, which aligns with the concept of structuring. Splitting and shifting do not accurately describe this behavior, and "None of the above" is not applicable since the correct answer is structuring.

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3.

A Suspicious Activity Report (SAR) will be filed:

Anytime a transaction seems suspicious, no matter the amount
For all transactions of $3000 or more
For all transactions for more than $10,000
All of the above

Correct Answer

A. Anytime a transaction seems suspicious, no matter the amount

Explanation

A Suspicious Activity Report (SAR) will be filed anytime a transaction seems suspicious, regardless of the amount involved. This means that even if a transaction is below $3000 or $10,000, it will still be reported if it raises suspicions. The focus is on identifying and reporting any suspicious activity rather than solely basing it on the transaction amount.

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4.

A Currency Transaction Report must always be filed for cash transaction of:

More than $2000
More than $3000
More than $10,000
All of the above

Correct Answer

A. More than $10,000

Explanation

A Currency Transaction Report must always be filed for cash transactions that exceed $10,000. This report is required by the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury. It helps to monitor and prevent money laundering and other illegal financial activities. By reporting large cash transactions, authorities can track any suspicious or potentially criminal activities and ensure compliance with anti-money laundering regulations. Therefore, any cash transaction exceeding $10,000 triggers the requirement to file a Currency Transaction Report.

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5.

If an agent knows a SAR has been filed, the agent should:

Always inform the customer a SAR has been filed
Never tell the customer a SAR has been filed
Only tell customer the agent knows as well
None of the above

Correct Answer

A. Never tell the customer a SAR has been filed

Explanation

The correct answer is "Never tell the customer a SAR has been filed." This is because disclosing the filing of a Suspicious Activity Report (SAR) to the customer could potentially compromise the investigation and alert the customer, which could result in them altering their behavior or attempting to evade detection. SARs are filed by financial institutions to report potentially suspicious transactions to the appropriate authorities, and it is important to maintain confidentiality to ensure the effectiveness of the reporting system.

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6.

A transaction is suspicious when:

One customer sends multiple transmissions, to one person, the same day
Multiple customers send funds to the same person on the same day
A customer has multiple transaction to persons with similar names the same day
All of the above

Correct Answer

A. All of the above

Explanation

A transaction is considered suspicious when any of the mentioned scenarios occur. These scenarios include one customer sending multiple transmissions to one person on the same day, multiple customers sending funds to the same person on the same day, and a customer having multiple transactions to persons with similar names on the same day. All of these situations raise red flags and indicate potentially fraudulent or illicit activity.

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7.

When an agent believes a transaction might be suspicious, the agent should:

Refuse to complete the transaction
Complete the transaction, but remember that customer for the next time he comes in
Complete the transactions and then inform Maniflo’s compliance department
None of the above

Correct Answer

A. Complete the transactions and then inform Maniflo’s compliance department

Explanation

When an agent believes a transaction might be suspicious, it is important for them to complete the transaction first to avoid alerting the customer and potentially jeopardizing an investigation. However, they should also inform Maniflo's compliance department so that they can investigate further and take appropriate action if necessary. This ensures that the company is aware of any suspicious activity and can comply with legal and regulatory requirements. Refusing to complete the transaction or simply remembering the customer for next time may not address the potential risks involved. Therefore, the correct course of action is to complete the transaction and then inform the compliance department.

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8.

Agents can inform customers that

Transactions of different amounts require different levels of identification
They should divide their transactions so additional identification is not needed
Both of the above
Neither of the above

Correct Answer

A. Neither of the above

Explanation

This answer suggests that agents should not inform customers about the different levels of identification required for transactions of different amounts, and they should not advise customers to divide their transactions to avoid additional identification.

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9.

Federal law requires additional identification for transactions of $3000. For transactions of $2000-2999, and the customer claims to have no ID, the Maniflo agent should ask and record the:

Customer’s date of birth
Customer’s occupation
Both of the above
Neither of the above, for Maniflo transactions of $2,000 require ID

Correct Answer

A. Neither of the above, for Maniflo transactions of $2,000 require ID

Explanation

According to federal law, transactions of $3000 or more require additional identification. However, for transactions between $2000 and $2999, the customer still needs to provide ID. Therefore, the correct answer is that neither the customer's date of birth nor their occupation needs to be recorded if they claim to have no ID, as ID is still required for transactions of $2000.

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10.

Agents must train employees on proper transaction policies and procedures:

Whenever a new employee is hired
Once a year after being hired
When new regulations or policies are enacted
All of the above

Correct Answer

A. All of the above

Explanation

The correct answer is "All of the above" because the statement suggests that agents must train employees on proper transaction policies and procedures in three different scenarios: whenever a new employee is hired, once a year after being hired, and when new regulations or policies are enacted. This indicates that training is necessary in all of these situations.

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Could You Pass This Compliance Trivia Test?

Maniflo agents must always comply with:

When customers use multiple transaction to avoid providing proper identification it is called:

A Suspicious Activity Report (SAR) will be filed:

A Currency Transaction Report must always be filed for cash transaction of:

If an agent knows a SAR has been filed, the agent should:

A transaction is suspicious when:

When an agent believes a transaction might be suspicious, the agent should:

Agents can inform customers that

Federal law requires additional identification for transactions of $3000. For transactions of $2000-2999, and the customer claims to have no ID, the Maniflo agent should ask and record the:

Agents must train employees on proper transaction policies and procedures: