Board BSA Quiz 2017

10 Questions | Total Attempts: 69

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Board BSA Quiz 2017

Questions and Answers
  • 1. 
    The Purpose of the Bank Secrecy Act is to:
    • A. 

      Identify the source, volume and movement of currency and monetary instruments among US Financial Institutions

    • B. 

      Aid in the investigation of money laundering

    • C. 

      Collect information on possible tax evasion

    • D. 

      All of the Above

  • 2. 
    The new Customer Due Diligence Rules:
    • A. 

      Had a mandatory compliance date of January 1, 2017

    • B. 

      Adds a fifth major requirement to Anti-Money Laundering (AML) programs

    • C. 

      Affects primarily consumer accounts

    • D. 

      Only affects credit unions with over $1 Billion in assets

  • 3. 
    Civil Money Penalties for Non-compliance with the BSA:
    • A. 

      Do not involve credit unions

    • B. 

      Are possible for credit unions and individuals

    • C. 

      Are capped at $10,000.00

    • D. 

      All of the Above

  • 4. 
    The Board of Directors BSA duties include:
    • A. 

      Interviewing potential BSA Officers

    • B. 

      Preparing Currency Transaction Reports

    • C. 

      Approving the BSA Program Annually

    • D. 

      All of the above

  • 5. 
    The BSA Compliance Program must include the following components:
    • A. 

      Independent Testing

    • B. 

      Designation of BSA Compliance Officer

    • C. 

      Training

    • D. 

      All of the above

  • 6. 
    The Internal Controls in a BSA program must be expanded when the credit union’s product offerings, services or member base expands.
    • A. 

      True

    • B. 

      False

  • 7. 
    A Customer Identification Program is:
    • A. 

      A required part of a credit union’s BSA program

    • B. 

      Only required for banks because credit unions have members, not customers

    • C. 

      Does not have to be approved by the Board

    • D. 

      Is only required on high risk customers

  • 8. 
    Credit unions are required to file a Suspicious Activity Report (SAR) if the institution knows or suspects that a transaction: 
    • A. 

      Involves illegal activity

    • B. 

      Is designed to evade BSA regulations

    • C. 

      Has no business or apparent lawful purpose

    • D. 

      All of the above

  • 9. 
    Suspicious Activity Reports (SARs) for insiders are required only if the subject suspicious transactions reach more than $10,000 or more in aggregate.
    • A. 

      True

    • B. 

      False

  • 10. 
    A credit union’s Office of Foreign Asset control program requires freezing funds or rejecting transactions when:
    • A. 

      A subject’s name appears on OFAC’s list of Specially Designated Nationals

    • B. 

      A transaction is suspicious

    • C. 

      A transaction is done by a non-resident alien

    • D. 

      A cash deposit of over $10,000 is done by one individual on one day

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