BSA Compliance Practice exam

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• What defines a Specific License issued by OFAC?
• What do BSA funds transfer rules primarily aim to mitigate?
• What records must credit unions maintain regarding their BSA training program?
• What is the first criterion for a non-listed business under Phase II?
• True or False: Providing financial records that are not requested or required by a subpoena or summons may subject the credit union to liability for violating a member's privacy rights.
• Are purchases of different types of monetary instruments totaling $3,000 or more treated as one purchase?
• What is the importance of a transaction monitoring system?
• Which information is NOT required for credit union records when a purchaser has an account?
• How frequently must a credit union notify their board of directors about SAR filings?
• Which group is considered appropriate personnel to receive BSA/AML training?
• If a credit union collects more identifying information than necessary during account opening, what must be done with this information?
• Which of the following describes a "Customer Identification Program" (CIP)?
• Which of the following best describes 'ongoing member due diligence' under the BSA/AML compliance program?
• What does Section 326 of the USA Patriot Act require financial institutions to implement?
• What is a key factor that a financial institution's CIP must be tailored to?
• Which of the following parties are subject to OFAC requirements in an ACH transaction?
• According to compliance regulations, when must entities file an annual report on blocked property?
• How often must credit unions review exemptions granted to members?
• Are credit unions required to file a SAR for a robbery that is reported to the local authorities?
• What are the two prongs defined under CDD/MDD rules for "beneficial owner"?
• What is the purpose of filing Suspicious Activity Reports (SARs)?
• What is the expected impact of a BSA Independent Auditor's findings on an institution's operations?
• What should institutions monitor to detect potential money laundering?
• What must a credit union do to get a member CTR exemption?
• How many business days do both blocked and rejected transactions need to be reported to OFAC?
• What is considered a "politically exposed person" (PEP) in BSA regulations?
• Which agency oversees the SDN list relevant to financial institutions?
• What kind of records must be kept for BSA compliance?
• What is the main criterion for blocking property according to BSA compliance?
• Is it true or false that a credit union must file a CTR if a member purchases $15,000 worth of traveler's checks with money from their checking account?
• How are non-profits treated under BSA regulations?
• What information must be collected if a purchaser does NOT have an account with the credit union?
• Who is responsible for the oversight of BSA compliance in a financial institution?
• When does the time period for filing a SAR start?
• What is NOT a part of the required information for a monetary instrument purchase if the purchaser has an account?
• What does BSA stand for in the context of financial compliance?
• What does the term "Wire Transfer" implicate in BSA compliance?
• What does Section 314(b) of the USA Patriot Act allow?
• What does the CDD/MDD rule define as a "legal entity"?
• Under what circumstance can a financial institution deny a customer's account application?
• What term describes the practice of separating large cash transactions into smaller ones?
• In the context of BSA/AML compliance, what does CTR stand for?
• Who is responsible for the corrective action following an independent audit of the BSA/AML program?
• How frequently are credit unions notified of new postings on FinCEN's secure Web site?
• What is one important aspect of the BSA Independent Auditor's role regarding regulatory updates?
• What is the overall purpose of designating a BSA compliance officer?
• True or False: Credit unions are required to block property and payment of transactions involving individuals on OFAC's SDN List.
• What are the key components of an effective BSA compliance program?
• What type of training is mandatory for employees under BSA compliance?
• What is a critical benefit of BSA compliance for financial institutions?
• What action must a credit union take when new lists under program 314(a) are posted?
• Which of the following best describes the term 'money laundering' in relation to BSA?
• Which of the following is NOT a responsibility of the BSA Independent Auditor?
• Who is primarily required to receive BSA/AML training according to compliance regulations?
• Which of the following financial activities poses a higher risk for illegal activities?
• Are 314(a) requests confidential?
• What is the penalty for willful failure to comply with BSA requirements?
• True or False: A transaction should still be allowed if the purchaser cannot provide the required information at the time of the transaction.
• Which of the following is NOT considered a type of financial service provider as an MSB?
• What information is required in the annual report filed by holders of blocked property?
• How often must financial institutions update their BSA compliance program?
• What does the term "Elder Financial Exploitation" refer to?
• What key components should an OFAC program of a credit union include?
• What is the general retention period for BSA records?
• What topics must be included in a financial institution's BSA training program?
• Within how many days must a CTR be filed after the day of the transaction?
• Why is the Member Due Diligence (MDD) process important in a BSA compliance program?
• How often do regulators recommend that independent testing of your BSA program be conducted?
• What occurs when a credit union blocks a transaction?
• Will credit unions be held responsible for the MSB's BSA/AML program?
• What type of entities are only subject to the control criteria prong for the definition of "beneficial owner"?
• What is the threshold amount for transactions that require a Currency Transaction Report (CTR)?
• Are purchases of multiple monetary instruments made during one business day totaling $3,000 or more treated as one purchase?
• What is the primary purpose of FinCEN's SAR E-Filing System?
• What does the term "Know Your Customer" (KYC) refer to?
• Which regulation requires financial institutions to establish a written BSA compliance program?
• What should procedures for escalating issues from repeat SAR filings include?
• Can a credit union require a lower ownership threshold for beneficial ownership criteria?
• Which type of providers are included among the 5 distinct types of MSBs?
• Which aspect should NOT be included in the OFAC compliance training program for credit union personnel?
• What does "structuring" refer to in BSA compliance?
• What is one of the primary purposes of the BSA?
• What additional understanding is required under the MDD compared to the CIP?
• What does a Suspicious Activity Report (SAR) aim to achieve?
• What is the primary purpose of Customer Due Diligence (CDD) in BSA compliance?
• Which agency is primarily responsible for enforcing the BSA?
• Why is it crucial for credit unions to have internal controls for OFAC compliance?
• Which of these characteristics is essential for a BSA Independent Auditor?
• What should credit unions monitor to detect potential changes in a member's risk profile?
• True or False: The attorney opening an IOLTA account should be treated as the beneficial owner of the legal entity account.
• Which entities are exempt under Phase I designation?
• What does a General License from OFAC allow?
• What is an administrative subpoena or summons?
• What is one of the major outcomes expected from an independent audit of the BSA/AML program?
• Which of the following individuals are NOT subject to identification and verification rules?
• What is a "Hedge Fund" in the context of BSA compliance?
• Which of the following best describes a Phase I designation?
• What is a necessary step when evaluating repeat SAR filings on accounts?
• Who qualifies as a "beneficial owner" based on ownership criteria?
• What is the primary function of a BSA Independent Auditor?
• Which of the following is a common example of an MSB?
• Which of the following stages is suggested by OFAC for screening accounts?
• What is the maximum threshold for cash transactions before they must be reported under the BSA?
• Is a credit union considered an MSB?
• What is one requirement for payroll members under Phase II exemptions?
• What is an adverse action notice?
• Which of the following is NOT one of the requirements under the CIP for financial institutions?
• How frequently should BSA training be conducted for personnel?
• What outcome is likely if a financial institution fails to address the BSA Independent Auditor's recommendations?
• Does the CIP rule prevent minors from opening accounts at credit unions?
• What does AML stand for and how is it related to BSA?
• What does the acronym SDN stand for in financial compliance?
• Must most MSBs provide their FinCEN registration number to the credit union when opening an account?
• What are the two types of licenses that OFAC can issue for certain transactions?
• How do credit unions ensure compliance with BSA regulations?
• Which of the following is NOT one of the five pillars of an effective BSA/AML compliance program?
• What time frame must credit unions review their records for matches after updating the lists under 314(a)?
• True or False: The credit union's board of directors is ultimately responsible for the credit union's BSA compliance?
• How frequently must BSA officers report to the Board of Directors?
• Which of the following is NOT a component of Enhanced Due Diligence (EDD)?
• What is required for a payroll customer to qualify under Phase II?
• What does the term 'positive match' refer to in the context of 314(a) requests?
• True or False: Funds transfers governed by Regulation E or the Automated Clearinghouse rules are covered by the Travel Rule.
• What is the best practice for when a credit union should verify identity?
• What element is crucial in verifying the identity of applicants for financial accounts?
• What does the Customer Identification Program (CIP) aim to do?
• What does "due diligence" involve in a compliance context?
• To be considered an MSB, what is the minimum transaction amount for currency dealer or exchanger and check cashers?
• How many individuals can be identified as beneficial owners under the ownership prong?
• Which of the following is a primary purpose of the BSA?
• How often should the BSA Independent Auditor report findings to the board or management?
• Which statement about beneficial owners is accurate?
• Which of the following is a characteristic of a Suspicious Activity Report (SAR)?
• What is the control criteria under the definition of beneficial owner?
• What is a key benefit of independent auditing in BSA compliance?
• What type of transactions are regulated under the BSA?
• What is the role of the Office of Foreign Assets Control (OFAC) in relation to the BSA?
• What are the two categories of exempt persons for CTRs?
• What is necessary for a successful Suspicious Activity Report (SAR) program?
• Under what circumstances are credit unions required to file a Suspicious Activity Report (SAR)?
• What is the primary purpose of the BSA?
• What further actions should the credit union take when they have a positive match to the 314(a) requests?
• What defines a "funds transfer"?
• When can financial institutions file SARs for continuing activity?
• How should credit unions report all positive matches to the 314(a) requests?
• Which of the following factors should NOT affect how a financial institution tailors its CIP?
• What does MSB stand for in financial compliance?
• How many reportable transactions must a non-listed business conduct to qualify under Phase II?
• What type of SAR is filed if a member is terminated for AML compliance reasons?
• Does the credit union have any CIP obligations regarding the underlying clients in IOLTA or escrow accounts?
• Which of the following roles may qualify as beneficial owners?
• What happens if no suspect can be identified for a SAR?
• True or False: A credit union must provide an adverse action notice if it refuses to open an account based on a consumer report.
• Which of the following is NOT considered a legal entity?
• Which of the following actions should NOT be taken after a credit union receives a positive match on a 314(a) request?
• Which types of transfers are excluded from the BSA funds transfer rule?
• Are certain transactions exempt under the Bank Secrecy Act (BSA)?
• When should the credit union consider notifying law enforcement in relation to SAR filings?
• What should be included in the verification of beneficial owners procedures?
• If a financial institution suspects money laundering activity, what should be the first action taken?
• How long do credit unions have from the transmission date of the request to respond to 314(a) requests?
• What is the minimum dollar amount for which a designated non-financial business entity must file a report under the BSA?
• What four pieces of information are required from each new member by credit unions?
• What does AML stand for in the context of BSA compliance?
• What is the purpose of maintaining records of the information used to verify a person’s identity?
• Can financial institutions file Suspicious Activity Reports (SARs) earlier than the 120-day deadline?
• What is the purpose of a Risk-based Approach in BSA compliance?
• Within how many days must a Suspicious Activity Report (SAR) be filed after identifying a suspicious transaction?
• What should a credit union do in response to identifying suspicious activity?
• Which of the following is a requirement for a credit union under the BSA?
• Which behavior may be considered "suspicious" according to BSA compliance?
• Which entity typically necessitates the role of a BSA Independent Auditor?
• What does "the ability to detect unusual activity" entail?
• True or False: Some OFAC programs require a credit union to reject transactions rather than accept and freeze funds.
• Which of the following is a key element of an effective BSA compliance program?
• True or False: Training material for BSA/AML compliance should be the same for all employees?
• What is the general retention period for records under the BSA?
• What is the primary goal of BSA compliance?
• In what way can independent audits influence the culture within a financial institution?
• What is required in the transmittal order from all "transmittor financial institutions"?
• Who must file for a Specific License according to OFAC regulations?
• What might be a consequence for a credit union failing to comply with BSA regulations?
• What is a Financial Institution's responsibility regarding customer identification?
• How often must credit unions conduct risk assessments related to BSA compliance?
• Are credit unions required to report suspicious activities in compliance with BSA?
• How long does the BSA require a SAR to be filed after detecting potential suspicious activity?
• What does the term "Red Flags" signify in the context of BSA compliance?
• What type of due diligence is required for high-risk customers?
• Why must a CTR list all joint owners for deposits?
• Why is the $10,000 threshold important in BSA compliance?
• What should the CIP procedures of a credit union describe?
• Which of the following is NOT one of the ways a credit union can identify beneficial owners of business accounts?
• Which type of license does not require prior case-by-case authorization from OFAC?
• For which type of accounts must a CTR list all joint owners?
• What must be true for a SAR involving potential money laundering?
• If a credit union cashes checks for non-members, is it considered an MSB for BSA purposes?
• Which of the following must be included regarding the transmittal order?
• What is the primary focus of the USA PATRIOT Act concerning BSA compliance?
• What is a potential consequence of failing to file required reports timely under BSA?
• What is required regarding the original information obtained during account opening by a credit union?
• What role does FinCEN play in the enforcement of the BSA?
• What should be included in the risk assessment of a BSA compliance program?
• What triggers the filing of a Marijuana Limited SAR?
• What type of transactions does the BSA's "Travel Rule" primarily cover?
• For a monetary instrument purchase, which information is required from a purchaser who does not have an account?
• During an audit, what is one area that the BSA Independent Auditor might focus on?
• Are non-bank financial institutions subject to BSA regulations?
• Which of the following entities is NOT typically classified as a money services business (MSB)?
• What does "Third-Party Risk" refer to in the context of BSA compliance?
• How do U.S. BSA requirements apply to foreign banks?
• When is it necessary for a credit union to verify an existing member's identity?
• What should a BSA Independent Auditor review as part of their assessment?
• Can a credit union rely on existing member information to fulfill beneficial ownership identification requirements?
• What should a credit union do if they suspect a transaction may involve money laundering or terrorist activities according to 314(b)?
• What is essential for a robust BSA/AML compliance program?
• What does the BSA's "Travel Rule" require from credit unions?
• True or False: A small credit union can have its BSA officer solely determine when a CTR is necessary?
• How can financial institutions identify high-risk customers?
• What information is required about the recipient's financial institution in the transmittal order?
• Which criterion does NOT require a SAR to be filed?
• Who is automatically exempt from filing a Designation of Exempt Person form?
• True or False: OFAC may grant permission for certain otherwise prohibited transactions through a licensing process.
• What agency oversees the enforcement of BSA compliance?
• Should employee training programs for BSA compliance be tailored for different roles?
• Which statement is true regarding Phase II non-listed businesses?
• Must a credit union identify and verify beneficial ownership for each account opened by a legal entity member?
• In BSA compliance, what is meant by "Beneficial Owner"?