Banking Secrecy Act Red Flag Rules! Trivia Quiz

The CU adheres to the BSA because it protects the credit union. The Bank Secrecy Act (BSA) is a law that requires financial institutions, including credit unions, to assist government agencies in preventing money laundering and other illegal activities. By adhering to the BSA, the credit union ensures that it is taking the necessary steps to identify and report suspicious activities, ultimately safeguarding its operations and reputation.

OFAC, or the Office of Foreign Assets Control, is a government agency that aims to protect institutions from unknowingly engaging in financial transactions with terrorists. They maintain a list of individuals and organizations that are involved in terrorism or other criminal activities, and they enforce economic and trade sanctions to prevent these entities from accessing funds or conducting business. By monitoring financial transactions and imposing sanctions, OFAC helps prevent the financing of terrorism and promotes national security.

DO NOT tell the member we have a hit on them. It could be a false positive.

A teller would file a Currency Transaction Report (CTR) for any cash transaction that exceeds $10,000. This is the threshold set by the Financial Crimes Enforcement Network (FinCEN) to monitor and report potentially suspicious activities that could involve money laundering or other illicit activities. The different formats and ways of expressing the amount, such as $10,000, $10,000.00, 10,000.00, 10,000, ten thousand dollars, ten thousand, 10000, 10000.00, $10000, and $10000.00 all indicate the same amount and would trigger the filing of a CTR.

SARs need to be filed with ANY suspicious activity. They are not reserved for cash transactions.

The correct answer is "Bank Secrecy Act." The Bank Secrecy Act is a federal law in the United States that requires financial institutions to assist government agencies in detecting and preventing money laundering and other illegal activities. It imposes various reporting and record-keeping obligations on banks and other financial institutions to ensure transparency and prevent financial crimes.

The correct answer is 30. In the context of the question, SAR refers to Suspicious Activity Report, which is a document that financial institutions are required to file with the authorities in cases of suspected money laundering or other illegal activities. The question is asking how many days there are to file a SAR, and the correct answer is 30.

The original purpose of the USA Patriot Act was to combat terrorism. This act was passed in response to the 9/11 terrorist attacks and aimed to enhance the ability of law enforcement agencies to prevent and investigate potential terrorist activities. It granted broader surveillance powers, allowed for increased information sharing among government agencies, and expanded the authority to detain and deport suspected terrorists. The act was controversial due to concerns about civil liberties and privacy, but it was primarily designed to address the threat of terrorism within the United States.

Specifically, this is an example of structuring in money laundering.

The question "What are the first four of your social security number?" is not an example of an out of the wallet question because it is asking for personal information that is typically not publicly available or easily guessed. Out of the wallet questions are usually based on information that is readily accessible or known by the person being asked, such as recent transactions or activities.

The credit union adheres to the Bank Secrecy Act (BSA) by implementing a Member Identification Program, which ensures that members' identities are verified. Additionally, they maintain yearly staff compliance training to ensure that all employees are aware of the BSA requirements and how to comply with them. They also monitor and report certain currency and suspicious activity, which helps to identify and prevent potential money laundering or terrorist financing activities.

The CU runs an OFAC when a new member opens an account to ensure that the member is not on any OFAC list. It also runs an OFAC monthly on all current and past members to continuously monitor for any changes in their status. Additionally, the CU runs an OFAC for all non-member transactions to prevent any potential illegal activities involving non-members.

Based on the information provided, it is unusual for Link Hugh to deposit such a large amount of cash into his savings account within a short period of time. This could potentially be a suspicious activity that requires further investigation. Therefore, filing a SAR (Suspicious Activity Report) Initiation Request is the appropriate action to take. It is important to follow proper procedures and not inform the customer to avoid tipping them off and potentially interfering with the investigation.

The examples of suspicious or unusual account activity include a member changing their address four times in the last month, returned mail, late payments without any previous history of late payments, and numerous credit inquiries. These activities may indicate potential fraud or unauthorized access to the account.

Louise is leaving with $10,000 exactly. If she left with anything more than $10,000 (such as $10,000.01), the CU would need to file a CTR.

The appropriate steps to complete the transaction in this scenario would be to excuse yourself to speak with your manager and ask for permission to continue with the transaction despite the member not having an updated ID. Once your manager confirms that it is permissible for this one-time transaction, you proceed with the transaction. Afterward, you make a tracker in Gold to document that a transaction was done and the member will bring an updated ID next time. This ensures that the transaction is completed while also following the necessary protocols and documenting the situation for future reference.