Unit 25: AML / BSA
Which of the following is the first stage in the money laundering process?
Placement
A Suspicious Activity Report would be triggered if the broker-dealer suspects a transaction involves funds derived from illegal activity and
involves at least $5,000 in funds or other assets.
One characteristic of large criminal enterprises is that they often generate significant sums of cash. The process of obscuring the source of this cash so that it can be used for legitimate purposes is
money laundering.
The process of making money that appears to have come from legal activities when it in fact it came from illegal activities is called
money laundering.
The anti-money laundering compliance officer should do all of the following except
notify customers immediately when a SAR is being filed.
An AML compliance officer should do all of the following except
notify customers immediately when an SAR is being filed.
Under the USA PATRIOT Act, financial firms must create and maintain records of wire transfers only
of $3,000 or more.
Which of the following would require the filing of a SAR? Any transaction alone or in aggregate involving at least
$5,000 and appears to serve no business or legal purpose.
Firms must file a suspicious activity report (SAR) within how many days of becoming aware of a suspicious transaction?
30 days and are prohibited from notifying the customer involved that a report has been filed.
Firms must file a SAR within how many days of becoming aware of a suspicious transaction?
30 days, and they are prohibited from notifying the customer involved that a report has been filed
Which of the following is not a function of the Office of Foreign Assets Control (OFAC)?
Control the assets of U.S. broker-dealers in foreign countries
The Office of Foreign Assets Control (OFAC) maintains a list of individuals and other entities that are involved in money laundering, drug trafficking, and terrorist activities that financial firms in the U.S. are prohibited from dealing with and will block assets of those individuals and entities if attempting to open financial accounts in the U.S. It does not control assets for broker-dealers overseas.
when opening a new account for an individual or other entity.
The Specifically Designated Nationals (SDN) list must be checked
when opening a new account for an individual or other entity.
The bureau of the Treasury Department that combats money laundering, and international and domestic terrorist financing is called
FinCEN.
Which of the following would require the filing of a suspicious activity report (SAR)?
Any transaction alone or in aggregate involving at least $5,000 and appears to serve no business or legal purpose.
Deposits received in currency for amounts over $10,000 in a day would require the firm to report the transaction in how many days on what form?
CTR within 15 days
Financial institutions such as broker-dealers must report when there is an event, transaction, or series of events or transactions that appear to be questionable to
FinCEN.
The bureau of the Treasury Department that combats money laundering and international and domestic terrorist financing is called
FinCEN.
What is the final stage of money laundering?
Integration
A customer enters several orders in complex securities without concern on the returns or losses. This suspicious activity is most likely the result of which stage of money laundering?
Layering
The Office of Foreign Asset Control maintains a list of people and organizations with whom U.S. citizens and companies are not allowed to do business. This list is called the
Specially Designated Nationals List.
Shortly after the branch opens, a customer, Martin, deposits $4,000 in cash into a business account. About midday, his spouse Cindy deposits another $4,000 in cash into the same account. Just before closing, Martin returns and makes another identical $4,000 deposit as he did that morning. What is this action called and which report should be filed?
Structuring, and a CTR should be filed
A bank employee has noticed that one of its customers has deposited $9,000 in his account every Monday, Wednesday and Friday for the past four weeks. Though the action could be legitimate, the customer might be trying to circumvent which of the following?
The Bank Secrecy Act
What government organization maintains the Specially Designated Nationals List?
The OFAC
Which of the following publishes and maintains a list of known terrorists and drug traffickers and those controlled by them or acting on their behalf?
The Office of Foreign Assets Control (OFAC)
An officer of a financial firm has identified what might represent suspicious behavior on the part of a customer, involving more than $5,000. When must the firm file a suspicious activity report (SAR)?
Within 30 calendar days
The Bank Secrecy Act requires that all financial services firm must appoint
an anti-money laundering officer.
All of the following are stages of money laundering except
diversification
A customer wishes to deposit $20,000 in cash into her account. This requires
filing a CTR with FinCEN.
All of these are functions of the Office of Foreign Assets Control (OFAC) except
fine financial service companies that do not comply with the regulations.
Records relating to a Currency Transaction Report (CTR) must be retained for
five years.
The USA PATRIOT Act's required Customer Identification Program is designed chiefly to prevent
funding of terrorist activities. money laundering.
All of the following are stages of money laundering except
initiation
The final phase of money laundering, when the money moves into the legal economy, is called
integration.
The three stage of money laundering include
placement, layering, and integration.
A customer who tries to disguise deposits of more than $10,000 in currency by making multiple smaller deposits in currency is guilty of
structuring.
The federal agency charged with the collection and analysis of financial transactions in order to detect illegal activity is
the Financial Crimes Enforcement Network (FinCEN).