Regulatory Compliance and AML Flashcards
7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance and AML flashcards as text
Under the USA PATRIOT Act Section 314(a), financial institutions must search their records upon receiving a request from FinCEN within how many days?
Answer: 5 business days
Section 314(a) requires financial institutions to respond to FinCEN information requests within 5 business days of the request date.
Which AML red flag is most indicative of 'structuring' (smurfing) activity?
Answer: Multiple cash deposits just below $10,000 made on consecutive days
Structuring involves deliberately breaking up transactions to stay below the $10,000 CTR reporting threshold, often on consecutive days.
What is the primary purpose of a Suspicious Activity Report (SAR) filed with FinCEN?
Answer: To alert FinCEN to transactions that may involve money laundering or other financial crimes
SARs are intelligence tools that alert FinCEN to suspicious activity that may involve money laundering, fraud, or other financial crimes — not confirmed crimes.
Under BSA regulations, a Currency Transaction Report (CTR) must be filed for cash transactions exceeding what threshold?
Answer: $10,000
Financial institutions must file a CTR with FinCEN for any cash transaction exceeding $10,000 in a single business day.
The 'travel rule' in BSA/AML compliance requires banks to pass along certain information when transmitting funds. What is the minimum dollar threshold that triggers this rule?
Answer: $3,000
The Travel Rule (31 CFR 103.33) requires that banks include originator and beneficiary information for funds transfers of $3,000 or more.
Which of the following is NOT one of the four core elements of an effective BSA/AML compliance program?
Answer: Annual external audit of all customer accounts
The four pillars are: internal controls, a designated BSA officer, employee training, and independent testing — not an annual audit of all accounts.
A bank receives a grand jury subpoena for a customer's records. Under the BSA 'tipping off' prohibition, the bank may NOT:
Answer: Notify the customer that a SAR was filed regarding their account
The BSA tipping-off prohibition explicitly forbids notifying a customer (or anyone else) that a SAR has been filed concerning their account.