Lucky Money BSA Quiz

30 Questions | Total Attempts: 165

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Lucky Money BSA Quiz

Questions and Answers
  • 1. 
    The Bank Secrecy Act requires Lucky Money to file a _______ for certain transactions over $10,000 cash. 
    • A. 

      Suspicious Activity Report

    • B. 

      Criminal Activity Report

    • C. 

      MSB Registration Report

    • D. 

      Currency Transaction Report

    • E. 

      Specially Designated Nationals Report

  • 2. 
    The four pillars of an AML program are: 1) designation of compliance officer; 2) ongoing training; 3) independent testing; and 4)  
    • A. 

      Customer due diligence

    • B. 

      OFAC screening

    • C. 

      Policies, procedures and controls

    • D. 

      Pre-payment disclosures

    • E. 

      Proper data entry

  • 3. 
    Which of the following is required under the Bank Secrecy Act when a customer conducts a money transfer transaction in the amount of $3,000 or more:
    • A. 

      Risk assessment

    • B. 

      Customer due diligence

    • C. 

      Social Security Number

    • D. 

      Receipt with all the necessary disclosures

    • E. 

      A Currency Transaction Report (CTR)

  • 4. 
    The Bank Secrecy Act requires Lucky Money to 
    • A. 

      Report suspicious activities in amount $2,000 or greater

    • B. 

      Keep records of all transactions for 7 years

    • C. 

      File Currency Transaction Reports for certain transactions

    • D. 

      A) and C) only

    • E. 

      All of the above

  • 5. 
    Perpetrators of a crime will often try to disguise the origin of their ill-gotten financial gain by creating complex financial transactions. Some of these transactions involve transferring money to several different accounts in order to complicate the paper trail. This phase of money laundering is called:
    • A. 

      Placement

    • B. 

      Layering

    • C. 

      Integration

    • D. 

      All of the above

    • E. 

      None of the above

  • 6. 
    Which of these activities might require a suspicious activity report?
    • A. 

      A customer attempts a transaction and requests another transaction for a lesser amount when you inform him this transaction requires his social security number

    • B. 

      A customer requests an unusually high dollar transaction and cannot explain the reason for the transaction or the source of the cash.

    • C. 

      A customer asks questions about how what amount he can send without providing documentation for his source of funds

    • D. 

      4 different senders come to your location at different times today to send funds to one beneficiary, each sending no more than $10,000 cash.

    • E. 

      All of the above

  • 7. 
    You will be prosecuted under the Bank Secrecy Act if your suspicious activity reports turned out to be incorrect. 
    • A. 

      True

    • B. 

      False

  • 8. 
    A customer brings in $15,000 cash and requests three different money transfer transactions sent to three different beneficiaries for $5,000 each.  A CTR is not required. 
    • A. 

      True

    • B. 

      False

  • 9. 
    Under Lucky Money customer identification procedures, which of the following is acceptable:
    • A. 

      Use of nick names

    • B. 

      Use of a P.O. Box address

    • C. 

      Use of expired identification documents

    • D. 

      Use of foreign passports as identification

    • E. 

      Use of foreign driver’s license as identification

  • 10. 
    Under Lucky Money policy, the maximum amount for an individual to send per day is:
    • A. 

      $25,000 cash

    • B. 

      $250,000 check

    • C. 

      $100,000 check

    • D. 

      A) and C) only

    • E. 

      None of the above

  • 11. 
    Why does Lucky Money ask for proof of source of funds?
    • A. 

      To file suspicious activity reports

    • B. 

      To mitigate risk of money laundering and financial crimes

    • C. 

      To conduct Know Your Customer procedures

    • D. 

      All of the above

    • E. 

      B) and C) only

  • 12. 
    A customer sends $10,000 paid in cash to a relative, and there is no fee for this transaction. A CTR is required. 
    • A. 

      True

    • B. 

      False

  • 13. 
    A customer sends $9,000 paid in cash to a relative, and there is no fee for this transaction. A SAR is required. 
    • A. 

      True

    • B. 

      False

  • 14. 
    When you report a suspicious activity in good faith, the law protects you from civil liability. 
    • A. 

      True

    • B. 

      False

  • 15. 
    Notifying a customer about the investigation of a potential filing of a SAR on that customer is a violation of the Bank Secrecy Act and punishable by fines and imprisonment. 
    • A. 

      True

    • B. 

      False

  • 16. 
    Lucky Money’s Know Your Customer Policy is intended to:
    • A. 

      Identify customers

    • B. 

      Verify customer’s information

    • C. 

      Build customer relationship

    • D. 

      Understand the nature of the customer’s transactions

    • E. 

      All of the above

  • 17. 
    A customer conducts a money transfer transaction for $6,000 cash on Monday; He returns on Tuesday and conducts a money transfer transaction for $9,000. On Wednesday the customer returns and conducts a money transfer transaction for $8,000. On Thursday the customer returns and conducts a money transfer transaction for $10,000. There is no fee for this transaction. Which of the following is true:
    • A. 

      None of the transactions require a Currency Transaction Report

    • B. 

      The transaction on Thursday requires a Currency Transaction Report

    • C. 

      The transactions may require a Suspicious Activities Report

    • D. 

      A) and C) only

    • E. 

      B) and C) only

  • 18. 
    Lucky Money conducts OFAC screening in order to:
    • A. 

      Determine whether a recipient is sanctioned from conducting business with the U.S.

    • B. 

      Reduce the risk of terrorist financing

    • C. 

      Determine whether the sender has been traveling overseas

    • D. 

      A) and B) only

    • E. 

      None of the above

  • 19. 
    What is the objective of Lucky Money’s Institutional Customer policy?
    • A. 

      Establish the legal existence of the customer

    • B. 

      Identify and verify the true owner(s) of the business

    • C. 

      Understanding the customer’s risk profile

    • D. 

      Understanding the customer’s business purpose

    • E. 

      All of the above

  • 20. 
    Lucky Money’s KYC policy is 
    • A. 

      A one-time project done for first-time customers only

    • B. 

      Conducted only by the Compliance Department

    • C. 

      Conducted every 5 years

    • D. 

      An ongoing process

    • E. 

      Is only important if the customer is sending a large sum of money

  • 21. 
    Which of the following activity is most unusual and potentially suspicious?
    • A. 

      A customer sending monthly the same amount to the same beneficiary

    • B. 

      A customer cancelling a transaction when certain identification information is required

    • C. 

      A customer asking about Lucky Money’s privacy and security policy

    • D. 

      A customer paying in cash

    • E. 

      None of the above

  • 22. 
    A religious society wants to send funds to the Philippines to offer relief to disaster victims. Which of the following  are necessary KYC information: 
    • A. 

      Name of the group

    • B. 

      Name of the authorized representative for the group

    • C. 

      Documents to show legal existence of the group

    • D. 

      The TIN or EIN of the group

    • E. 

      All of the above

  • 23. 
    What is the retention period for records as required by the Bank Secrecy Act?
    • A. 

      1 year

    • B. 

      2 years

    • C. 

      5 years

    • D. 

      7 years

    • E. 

      Indefinitely

  • 24. 
    The financing of terrorist activities may involve legally obtained funds such as business profits and funds raised through charitable contributions. 
    • A. 

      True

    • B. 

      False

  • 25. 
    Under the Bank Secrecy Act, at what transaction amount is Lucky Money required to obtain and retain a copy of a customer’s identification?
    • A. 

      $1,000

    • B. 

      $2,000

    • C. 

      $3,000

    • D. 

      $5,000

    • E. 

      $10,000

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