Bank Secrecy Act/Anti-Money Laundering (BSA/AML)

Under federal law, financial institutions are required to report transactions of _________ or more that they SUSPECT involve money laundering or violate the Bank Secrecy Act.

$5,000

Each institution must develop a written anti-money laundering compliance program that includes:

-Internal controls and metrics -Independent auditing -Individuals responsible for managing compliance -Staff training

The goals of BSA include:

-Preventing and detecting money laundering and criminal activity financing -Documenting large currency transactions -Improving reporting and aiding investigations of financial crimes

(Reg)Implement a customer identification program (CIP):

-Verifying customer identities -Maintaining verification records -Cross-checking customer identities with government lists for known or suspected terrorists or terrorist organizations

A SAR is to be filed no later than __________________ after the date of the initial detection. This report must be filed ________________ through the BSA E-Filing System using the SAR Form 111. The E-File SAR Form has _______ parts.

30 calendar days; electronically; five

_________________ was designed to prevent the U.S. financial services industry from being used to launder money

Bank Secrecy Act (BSA)

FinCEN will receive notice of home loan transactions involving cash payments exceeding $10,000. FinCEN will receive this notice on ______________________, which the IRS requires for reporting cash payments over $10,000

IRS Form 8300

(Reg)Record specific, large negotiable instrument purchases:

financial institutions must record single or structured cash purchases of negotiable instruments between $3,000 and $10,000

(Reg) Record specific, large wire transfers:

financial institutions must record wire transfers that exceed $3,000

When a financial institution files a SAR, it is required to maintain a copy of the SAR and the original or business record equivalent of any supporting documentation for a period of ______________ from the date of filing.

five years

(Reg)Report suspicious activity and transactions:

record all suspicious activities and report them using a SAR to FinCEN

(Req)Reporting large currency transactions:

using a Currency Transaction Report (CTR), financial institutions must report SINGLE or structured currency transactions that EXCEED $10,000 to FinCEN