Unit 25: AML/BSA

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 A) FBI. B) FinCEN. C) Securities and Exchange Commission (SEC). D) Financial Industry Regulatory Authority (FINRA).

B) FinCEN. The USA PATRIOT Act requires firms to report to Financial Crimes Enforcement Network (FinCEN) when there is an event, transaction, or series of events or transactions that appear to be questionable. (LO 25.c - Question #3 of 25 - Question ID: 1269919)

The USA PATRIOT Act's required Customer Identification Program is designed chiefly to prevent 1) real estate fraud. 2) funding of terrorist activities. 3) use of insider information. 4) money laundering. A) II and IV B) I and IV C) II and III D) I and III

A) II and IV The Customer Identification Program that must be in place at every broker-dealer firm is designed to ensure that all customers are who they say they are. Accurate identification makes it more difficult to fund terrorist activities or launder money for those who might intend to. (LO 25.f - Question #2 of 25 - Question ID: 1269914)

All of the following are stages of money laundering except A) integration. B) placement. C) initiation. D) layering.

C) Initiation Initiation is a made up term. The other options are the stages of money laundering. (LO 25.b -Question #4 of 25 - Question ID: 1280201)

Which of the following would require the filing of a suspicious activity report (SAR)? A) Any transaction alone or in aggregate involving at least $5,000 on a single day. B) Any transaction alone or in aggregate involving at least $3,000 on a single day. C) Any transaction alone or in aggregate involving at least $3,000 and appears to serve no business or legal purpose. D) Any transaction alone or in aggregate involving at least $5,000 and appears to serve no business or legal purpose.

D) Any transaction alone or in aggregate involving at least $5,000 and appears to serve no business or legal purpose. SARs are required to be filed by the firm if the transaction appears to serve no business or legal and the transaction involves alone or in aggregate at least $5,000. (LO 25.d - Question #1 of 25 - Question ID: 1269931)