Habitat For Humanity - Fond Du Lac BSA / AML Quiz

15 Questions | Total Attempts: 118

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Habitat For Humanity - Fond Du Lac BSA / AML Quiz

This quiz will serve as a confirmation of the annual review and comprehension of the Anti-Money Laundering Policy for all board members and Habitat employees.


Questions and Answers
  • 1. 
    Have you reviewed the Habitat for Humanity FDL Anti-Money Laundering Policy and Program Procedures?
    • A. 

      Yes

    • B. 

      No

  • 2. 
    In the AML policy for Habitat what is considered money laundering?
    • A. 

      Accidentally leaving a $20 bill in your pocket and washing it.

    • B. 

      Engaging in acts to disguise criminally derived proceeds as assets derived from legitimate activities or origins.

    • C. 

      Depositing currency into a financial institution.

    • D. 

      Collecting cash from a Habitat home owner for this month's house payment.

  • 3. 
    From the transactions outline below, select the one that would most likely be considered money laundering.
    • A. 

      A Habitat home owner typically makes his loan payment 7 days late. There was no change in employment. The home owner presents a check to the Executive Director with a check for the exact amount due one day early of the due date this month.

    • B. 

      A Habitat home owner typically makes her loan payment on time for the exact amount due each month. This month she presents the Habitat Executive Director with a check for $15 more than her required loan payment. She explains that she picked up a part time job bar tending one night on the weekend.

    • C. 

      A Habitat home owner has typically made their mortgage payment 5 days after the due date for the exact amount due via check. There has been no change in employment status. The home owner presents the Habitat Executive Director with cash and an extra $3,000 to pay down the home loan. The Home owner cannot and will not explain where the extra funds are from.

    • D. 

      A local financial institution typically makes an annual donation to Habitat. This year the same financial institution presents a check of $4,000 to the Habitat Executive Director as a donation for the upcoming home build.

  • 4. 
    Money laundering typically includes three stages, pick below the correct three stages.
    • A. 

      Collection, Disbursement, Spending

    • B. 

      Layering, Structuring, Placement

    • C. 

      Placement, Spending, Collecting

    • D. 

      Placement, Layering, Integration

  • 5. 
    What type of fraud is performed  when a lender or borrower engages in conduct including the following: - Providing false financial information in the mortgage loan application - Providing false information regarding occupancy - Using nominees for the purhcase of property - Falsifying documents (Tax Returns, Verification of Income, Verification of Down Payment)
    • A. 

      Mortgage Fraud

    • B. 

      Bank Fraud

    • C. 

      Financial Fraud

    • D. 

      Money Fraud

  • 6. 
    Through the Habitat AML Policy the organization is required to comply with the Office of Foreign Assets Control (OFAC) regulations.  Who must the organization verify is not on the OFAC list?
    • A. 

      Board Members

    • B. 

      Recipients for a new Habitat home build

    • C. 

      Build volunteers

    • D. 

      Habitat employees

  • 7. 
    Habitat for Humanity is required to obtain specific information from each mortgage loan  applicant according to the AML policy so it can be compared to government-provided lists (OFAC, SDN).  What are the four pieces of information that MUST be collected for the organization to cross reference the OFAC and SDN lists.
    • A. 

      Race

    • B. 

      Name

    • C. 

      Date of Birth

    • D. 

      Marital Status

    • E. 

      Address

    • F. 

      Astrological Sign

    • G. 

      Government-issued identification number (SSN, passport number, etc.)

    • H. 

      Eye Color

    • I. 

      Hair Color

  • 8. 
    Red flags can arise at any time, including during the application process and throughout the customer relationship.  Identify three red flags below.
    • A. 

      The customer pays their loan with a check but asks that you wait to cash the check for 2 days until payday.

    • B. 

      The information provided by the customer that identifies a legitimate source for funds is false, misleading, or substantially incorrect.

    • C. 

      The customer has one speeding ticket on his record from five years ago with no other offences.

    • D. 

      The customer exhibits unusual concern about Habitat's compliance with government reporting requirements and Habitat's AML policies.

    • E. 

      The customer requests that a transaction be processed to avoid Habitat's normal documentation requirements.

    • F. 

      The customer pays their loan with a check.

  • 9. 
    Habitat employees or volunteers have up to 90 days to notify the Compliance Officer or designee about a suspicious transaction that needs a SAR filed.
    • A. 

      True

    • B. 

      False

  • 10. 
    Habitat for Humanity is required to retain all BSA-related records and their documentation for at least ____ years.
    • A. 

      2 years

    • B. 

      4 years

    • C. 

      5 years

    • D. 

      7 years

  • 11. 
    All new board members and Habitat employees must complete training on the Anti-Money Laundering Policy within _____ months of their start date.
    • A. 

      1

    • B. 

      2

    • C. 

      3

    • D. 

      6

  • 12. 
    Habitat's willful failure to comply with  BSA/AML record keeping requirements results in fines for the affiliate. Also, a continued noncompliance could result in issuance of a cease and desist order.
    • A. 

      True

    • B. 

      False

  • 13. 
    A person willfully violating the BSA/AML Policy are susceptible to significant fines, prison time, or both.
    • A. 

      True

    • B. 

      False

  • 14. 
    The Compliance Officer or designee will file a Suspicious Activity Report (SAR) for any transaction over $5,000 where we suspect  the transaction involves funds derived from illegal activity.
    • A. 

      True

    • B. 

      False

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