Bank Secrecy Act (BSA, AML, Kyc) Quiz

10 Questions | Total Attempts: 2385

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Bank Secrecy Act (BSA, AML, Kyc) Quiz

This quiz will test your knowledge of Sierra Pacific's Bank Secrecy Act, Anit-money Laundering and Know Your Customer policy.


Questions and Answers
  • 1. 
    It is the policy of Sierra Pacific Mortgage to actively prevent fraud, money laundering and any act that may facilitate money laundering, the funding of terrorist activity or other ciminal activiities and to report such activity we may uncover in our daily operations.
    • A. 

      True

    • B. 

      False

  • 2. 
    All employees are responsible for compliance with the BSA/AML/KYC policy, must refrain from breaches of this policy and must promptly report all discovered breaches to their manager, the Compliance Officer or Senior Management.
    • A. 

      True

    • B. 

      False

  • 3. 
    Examples of possible money laundering in a mortgage transaction include:
    • A. 

      Repeated cash out refinances

    • B. 

      Property flipping - higher prices each time, with no improvements to property

    • C. 

      Paying off the loan shortly after funding

    • D. 

      All of the above

  • 4. 
    All customers must be positively identified through the verification of certain identifying documents prior to funding a loan.
    • A. 

      True

    • B. 

      False

  • 5. 
    Loans may not be closed if any of the parties to the loan appear on the Office of Foreign Assets Control (OFAC) banned list.
    • A. 

      True

    • B. 

      False

  • 6. 
    Many of our investors maintain banned lists.  It is okay to fund a loan, even if a party to the loan is on one of these banned lists.
    • A. 

      True

    • B. 

      False

  • 7. 
    Financial exploitation tends to be more prevalent amongst individuals who are (check all that apply)
    • A. 

      Over 60 years of age

    • B. 

      Are professionals

    • C. 

      LIve in a residential care facility, assisted living facility or nursing home

    • D. 

      Have physical or other disabilities that require them to have a caregiver

  • 8. 
    Internal departments, such as Accounting and Human Resources have no responsibility to identify or prevent illegal transactions.
    • A. 

      True

    • B. 

      False

  • 9. 
    Particular care must be taken to ensure that third parties involved in the transaction (such as closing agents, brokers, correspondents) have been thoroughly reviewed and approved.
    • A. 

      True

    • B. 

      False

  • 10. 
    Known or suspected violations of law must be reported to the Compliance Officer, who may file a Suspicious Activity Report (SAR) with FinCEN.
    • A. 

      True

    • B. 

      False

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