Banking Secrecy Act Red Flag Rules! Trivia Quiz

16 Questions | Total Attempts: 157

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Bank Quizzes & Trivia

BSA and Red Flag


Questions and Answers
  • 1. 
    BSA stands for ______________________.
    • A. 

      Breaking Sadness Amendment

    • B. 

      Bank Safety Act

    • C. 

      Bank Safety Amendment

    • D. 

      Bank Secrecy Act

  • 2. 
    Executing financial transactions in a specific pattern calculated to avoid the creation of certain reports, such as a CTR, is considered a type of money laundering.
    • A. 

      True

    • B. 

      False

  • 3. 
    The CU adheres to the BSA because _____________.
    • A. 

      We think the law is worthless.

    • B. 

      it protects the credit union

    • C. 

      It gives the credit union more money

    • D. 

      It is in our contract

  • 4. 
    The original purpose of the USA Patriot Act was _________________.
    • A. 

      To combat terrorism

    • B. 

      To combat drug trafficking

    • C. 

      To encourage immigrants to become more patriotic

    • D. 

      To protect soldiers opening accounts.

  • 5. 
    Check the ways the CU adheres to the BSA. What do we do in order to be in compliance?
    • A. 

      Implements a Member Identification Program

    • B. 

      Participates as an EEO employer

    • C. 

      Maintains yearly staff compliance training

    • D. 

      Monitors and reports certain currency and suspicious activity.

  • 6. 
    A teller would file a CTR for any cash transaction that is GREATER than $____________.
  • 7. 
    Louise Ester walks into the Credit Union with a check for $10,003 that she wants the Credit Union to cash.  She is an essential rewards member so she will incur a $3.00 check cashing fee.  Louise leaves the Credit Union with $10,000 in cash.  Would you be required to fill out a CTR for this transaction? 
    • A. 

      True

    • B. 

      False

  • 8. 
    We have ____ days to file a SAR.
  • 9. 
    You can only file a SAR for cash transactions.
    • A. 

      True

    • B. 

      False

  • 10. 
    Which of the following is not an example of an out of the wallet questions?
    • A. 

      Do you have any loans with us?

    • B. 

      What are the first four of your social security number?

    • C. 

      Do you participate in online banking?

    • D. 

      Where did you last use your debit card?

  • 11. 
    What is the purpose of OFAC?
    • A. 

      To keep a list of celebrities and where they bank.

    • B. 

      To send yearly reports to the IRS about citizen's salaries.

    • C. 

      To fight against illegal immigration.

    • D. 

      To protect institutions from unknowingly doing business with terrorists.

  • 12. 
    Check the boxes which indicate when the CU runs an OFAC.
    • A. 

      When a new member opens an account.

    • B. 

      Immediately after a member closes their account.

    • C. 

      Monthly, on all current and past members.

    • D. 

      For all non-member transactions.

  • 13. 
    When an OFAC is run and a match is found, you need to let the member know immediately so they can fix the issue.
    • A. 

      True

    • B. 

      False

  • 14. 
    Link Hugh comes to your window to make a cash deposit of $1200. You notice that he has deposited $1000 or $1200 in cash into his savings account during the last 7 days, which is unusual for him.  His deposits bring the total amount of cash to  $8800. What should you do?
    • A. 

      No action is needed

    • B. 

      File a CTR

    • C. 

      Call over to your manager to discuss her account in front of her

    • D. 

      File a SAR Initiation Request and not tell her.

  • 15. 
    Check all the examples of suspicious or unusual account activity.
    • A. 

      Member change of address 4 times in the last month

    • B. 

      Member updating phone number in person

    • C. 

      Returned mail

    • D. 

      Late payments without previous history of late payments

    • E. 

      Numerous credit inquiries

    • F. 

      Member requesting a change of address form

    • G. 

      Member making an early payment

  • 16. 
    You are looking at a member's account and notice they don't have an updated ID. You ask for a current ID and the member informs you it is coming in the mail. What are the appropriate steps to complete the transaction?
    • A. 

      Tell the member that you'll "let it slide" this time and proceed with the transaction.

    • B. 

      Inform the member you cannot bend the rules and she will need to wait until she has an updated license. You then tracker this in Gold

    • C. 

      Look at previous IDs in her account to conclude she is the correct person on the account. Once you see other IDs on file, you do the transaction. Then you proceed to make a tracker in Gold specifying a transaction was done and the member will bring an updated ID next time.

    • D. 

      Excuse yourself to speak with your manager then ask your manager if it is permissible to continue for this one-time transaction, which they confirm it is. Then you proceed to make a tracker in Gold specifying a transaction was done and the member will bring an updated ID next time.

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