The Bank Secrecy Act Quiz! Trivia

12 Questions | Total Attempts: 55

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The Bank Secrecy Act Quiz! Trivia

Do you know anything about the Bank Secrecy Act? Do you think you can pass this quiz? The Bank Secrecy Act was legislated in 1970. It’s also identified as the Currency and Foreign Transactions Reporting Act. It is a law requiring financial institutions in the United States to assist US government agencies in protecting criminals from using financial institutions to hide or launder money. Take this quiz and discover more about the Bank Secrecy Act.


Questions and Answers
  • 1. 
    What is the purpose of the Bank Secrecy Act? 
    • A. 

      To detect and prevent money laundering

    • B. 

      Keep records of cash deposits, withdrawals, exchanges or an aggregate cash of more than $10,000

    • C. 

      To alert borrowers that a SAR will be filed when criminal activity is susected

    • D. 

      To allow banks and mortgage lenders to share information regarding criminal activity that borrowers are trying to keep secret

  • 2. 
    What is money laundering?
    • A. 

      A business that involves a high volume of cash, such as a laundromat.

    • B. 

      A system that allows money that was obtained illegally to be legally used ONLY IF the individual is purchasing a single family, owner occupied, residential property.

    • C. 

      Taking illegal money and hiding it for several years until it becomes legal money.

    • D. 

      Taking illegal or "dirty" money and placing it in the financial system in an effort to make the money look legitimate, or "clean."

  • 3. 
    What does FinCEN Stand for?
    • A. 

      Financial Criminal Agency

    • B. 

      Fishing In Canada is Nice.

    • C. 

      Finance Crimes Election Agency

    • D. 

      Financial Crimes Investigation Network

    • E. 

      Financial Crimes Enforcement Network

  • 4. 
    Which of the following is not a requirement of the Bank Secrecy Act?
    • A. 

      Report suspicious activity that might signify money laundering, tax evasion, or other criminal activities

    • B. 

      Implement a written, board-approved compliance monitoring program

    • C. 

      Keep records of all cash transactions

    • D. 

      None of the above

  • 5. 
    Bank Secrecy Act requires financial institutions to file a CTR if:
    • A. 

      Transaction exceeds $10,000

    • B. 

      Transaction exceeds $5,000

    • C. 

      Transaction exceeds $3,000

    • D. 

      Transaction exceeds $1,000

  • 6. 
    When should financial institutions file a CTR?
    • A. 

      Within 20 days from the date of transaction

    • B. 

      Within 15 days from the date of transaction

    • C. 

      Within 10 days from the date of transaction

    • D. 

      Within 25 days from the date of transaction

  • 7. 
    Which of the following is not considered an acceptable form of identification for Customer Identification Program?
    • A. 

      U.S. Passport

    • B. 

      Driver's License

    • C. 

      Credit Card

    • D. 

      None of the above

  • 8. 
    Which of the following statements about SAR is incorrect?
    • A. 

      SAR must be filed when there is an identifiable suspect and the transaction involves $5,000 or more

    • B. 

      SAR must be filed when there is no identifiable suspect and the transaction involves $10,000 or more

    • C. 

      Copies of SARs and supporting documentation should be retained for 5 years from the date of filing the SAR

    • D. 

      None of the above

  • 9. 
    A customer must be informed when a SAR related to his/her transaction if being filed.
    • A. 

      True

    • B. 

      False

  • 10. 
    A customer conducts 3 transactions on the same day and the amount of currency involved was $15,000. which of the following is required to comply with BSA?
    • A. 

      SAR must be filed as the transaction involves more than $5,000

    • B. 

      CTR must be filed as the transaction involves more than $10,000

    • C. 

      Both SAR and CTR must be filed

    • D. 

      None of the above

  • 11. 
    Which of the following is a possible red flag of suspicious activity?
    • A. 

      Customer who is reluctant to provide ID

    • B. 

      Cash transactions

    • C. 

      Customer who requests a money transfer to a foreign country

    • D. 

      None of the above

  • 12. 
    Which of the following is not a step in Money Laundering?
    • A. 

      Spending

    • B. 

      Integration

    • C. 

      Placement

    • D. 

      Layering

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