Bank Secrecy Act for Lenders
An institution is required to file a SAR ____ after the date of the initial detection of the suspicious activity.
30 calendar days
An institution may delay the filing of an SAR for an additional _______ to identify a suspect.
30 calendar days
Failure to comply with the requirements of the Bank Secrecy Act can result in:
All of the above
The basic provisions of a Customer Identification Program (CIP) include:
All of the above
What should you be looking for when taking a loan application?
All of the above
When gathering identification information while establishing a new customer relationship, which of these rules must be followed?
All of the above
What does "CIP" stand for?
Customer identification program
A new customer's identity must always and only be verified by documentation.
False
An institution and its employees are only liable for civil penalties if a violation of the BSA occurs.
False
Section 326 of the USA PATRIOT Act strongly recommends, but does not require, a formal Customer Identification Program (CIP).
False
You must retain the information and description of the identifying documents used to identify a new customer for seven years after the account is closed.
False
If you feel that you have uncovered a suspicious or unusual activity, but the amount of the funds involved is below the mandatory reporting requirement, what should you do?
File a SAR
How long after a customer identity was verified by documentation must your institution retain the information and the description of the documents?
Five years after the loan is paid off
One ongoing customer identification strategy is to make sure that the customer you are dealing with is NOT a:
Politically exposed person (PEP)
The primary purpose of the Bank Secrecy Act (BSA) is to
Prevent and detect money laundering activity
"SAR" stands for:
Suspicious activity report
A _____ should be completed for any transaction of at least $5,000 aggregate that the institution knows or suspects might be suspicious.
Suspicious activity report
Initial detection of suspicious activity means:
The moment an appropriate review is conducted and a determination is made that the transaction is deemed suspicious.
Filing a suspicious activity report is mandatory if illegal activities are suspected of a bank employee, regardless of the amount of money involved.
True
Knowing customers' typical banking practices helps prevent criminal activity at your institution.
True
Patterns of behavior, rather than a single incident, are the best detectors of possible criminal activity.
True
Performing a visual check of a business is a sound practice for nondocumentary verification of a business account.
True
Section 326 of the USA PATRIOT Act added additional provisions to the overall Bank Secrecy Act requirements.
True
Suspicious activity that falls below the monetary requirement for mandatory reporting may still be reported using the suspicious activity report (SAR) form.
True
The SAR Activity Review is a good source of current money laundering schemes.
True
The primary purpose of the Bank Secrecy Act is to help deter white collar crime by creating a "paper trail" for cash transactions and an "information trail" for wire transfers.
True
Your institution's Customer Identification Program (CIP) applies to all new customers.
True
Which of the following correctly describes the extent to which your institution must identify a new customer?
You must have a reasonable belief that you know the true identify of your customer