Bank Secrecy Act Compliance Specialist (BSACS) Practice Exam

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• True or False: Some OFAC-administered programs require credit unions to reject transactions instead of blocking them.
• True or False: Providing financial records that are not required by subpoena may violate a member's privacy rights.
• In the context of the BSA, what is necessary for verifying a purchaser's identity?
• One method to identify money laundering activities is through?
• What type of financial transactions are often scrutinized under BSA compliance?
• How is "structuring" or "smurfing" related to the Bank Secrecy Act (BSA)?
• When tailoring a financial institution's Customer Identification Program (CIP), which factor is NOT considered?
• What is the role of automated transaction monitoring systems in BSA compliance?
• What action must a credit union take if it determines that an MSB is non-compliant with regulations?
• True or False: A credit union must provide an adverse action notice if it refuses to open an account based on a consumer report.
• Are credit unions required to file a SAR for a robbery if it has been reported to local law enforcement?
• What essential information must be included in a Suspicious Activity Report (SAR)?
• Why does a CTR for deposits list all joint owners, but not for withdrawals?
• If a purchaser cannot provide required information at the time of the transaction, what should occur?
• What is a geographic risk assessment?
• What is an administrative subpoena or summons?
• Who is primarily responsible for adhering to the BSA's compliance requirements?
• What does the term "predicate offense" refer to in the context of money laundering?
• What must the BSA Officer be knowledgeable of?
• Which of the following is a specific criterion for non-listed businesses under Phase II?
• What tools can be used to assist in BSA compliance?
• What defines a Specific License issued by OFAC?
• What can be a potential consequence of failing to report suspicious activities?
• Which of the following is NOT a requirement for a payroll customer under Phase II designation?
• Why is ongoing employee training critical for AML compliance?
• What is NOT included in the required information for purchases made without an account?
• How can institutions mitigate risks related to BSA compliance?
• If a credit union collects more than the required identifying information, how long must this additional information be retained?
• What is "peer benchmarking" in AML programs?
• What is the purpose of structuring in financial transactions?
• Are purchases of multiple monetary instruments made during one business day totaling $3,000 or more treated as one purchase?
• What are the two types of licenses that OFAC may issue for certain transactions?
• How many days does a credit union have to file a CTR after a transaction?
• What is considered "willful blindness" in BSA compliance?
• What is the 'Customer Identification Program' (CIP)?
• What does "transaction monitoring" refer to?
• What type of transactions typically require MSBs to report suspicious activity?
• How long do credit unions have to respond to 314(a) requests?
• When does the time period for filing a SAR commence?
• What does "enhanced due diligence" involve?
• Who conducts the independent testing of the BSA program?
• What is the impact of non-compliance with BSA regulations on a financial institution?
• Which of the following transfers are excluded from the BSA funds transfer rule?
• What is a common method to verify identity via documentary means?
• Who is required to receive BSA/AML training?
• After how many days of review can financial institutions file SARs for continuing activity?
• What action is required when a financial institution identifies potential money laundering activities?
• Is it permitted for a credit union to allow a beneficial owner to open an account without full verification?
• In order to be considered an MSB, what must currency dealers or exchangers transact in an amount greater than?
• What information must a credit union's records of sales contain if a purchaser has an account with them?
• Which of the following best describes the responsibilities of MSBs under the BSA?
• What is defined as a "funds transfer"?
• In BSA compliance, what does "risk-based approach" refer to?
• What is the required action for credit unions when new 314(a) lists are posted?
• What are the two prongs defined as "beneficial owner" in the CDD/MDD rules?
• Can financial institutions file SARs on continuing activities earlier than the 120-day deadline?
• At what stages does OFAC recommend accounts be screened?
• What are "red flags" in the context of BSA compliance?
• What is the threshold for filing a SAR regarding a suspicious $4,000 transaction?
• Which of the following should be included in the verification of beneficial owners procedures?
• What property is subject to blocking under OFAC regulations?
• What information must a CTR for deposits into joint accounts list?
• What types of financial services providers are considered Money Services Businesses (MSBs)?
• What is the purpose of maintaining records for identity verification in financial institutions?
• If a credit union cashes checks for non-members, how is it classified for BSA purposes?
• What is the primary goal of BSA training for employees of financial institutions?
• What should a financial institution do if a customer refuses to provide requested identification documents?
• What is the typical retention period under the Bank Secrecy Act for financial records?
• For a credit union, what type of purchases require the execution of additional compliance reporting?
• What is the purpose of filing a one-time Designation of Exempt Person form?
• What is the intent of "risk-based" approaches in AML compliance?
• How often does the credit union's designated person receive notifications from FinCEN about new postings?
• What does "risk appetite" mean in BSA compliance?
• What activity is classified as structuring?
• What type of training should compliance officers receive?
• Under what circumstances are credit unions required to file a SAR?
• True or False: OFAC regulations require credit unions to block transactions involving parties on the SDN List.
• What could indicate changes in a member's risk profile that MDD requires credit unions to monitor?
• True or False: OFAC may allow certain otherwise prohibited transactions through a licensing process.
• What is the primary purpose of the Bank Secrecy Act (BSA)?
• What is the maximum number of beneficial owners identified under the control prong?
• Which of the following best describes the purpose of risk assessment tools in BSA compliance?
• What action should a credit union take if it identifies suspicious account activity?
• What is one responsibility of a credit union's OFAC compliance program?
• Why is the Member Due Diligence (MDD) process critical in a BSA compliance program?
• When should a financial institution update its customer risk profiles?
• Which of the following is NOT a requirement for financial institutions under the USA Patriot Act?
• What is the threshold amount for reporting suspicious transactions via SAR?
• What is a Suspicious Activity Report (SAR)?
• How many days does BSA regulations require for filing a SAR after suspicious activity is detected?
• What is the filing deadline for SARs related to previously filed suspicious activity?
• Which of the following is a responsibility of a credit union regarding 314(a) requests?
• What are the two categories of exempt persons for CTRs?
• How does the CDD/MDD rules define a "legal entity"?
• What is the purpose of internal controls in a BSA/AML compliance program?
• When should a financial institution conduct a customer risk assessment?
• What should a credit union conduct to believe a member has a legitimate business purpose for conducting transactions?
• What must holders of blocked property file annually by September 30th?
• True or False: Small credit unions can have the BSA officer handle all CTR related decisions.
• What should credit unions periodically monitor as part of the MDD process?
• What is one criterion a non-listed business must meet under Phase II designation?
• What should the procedures for escalating issues identified from repeat SAR filings include?
• What is the purpose of 314(b) under the USA Patriot Act?
• Funds transfers governed by Regulation E or the Automated Clearinghouse rules are covered by the Travel Rule.
• Which four pieces of information are credit unions required to collect from each new member?
• What information is required in a CTR?
• Why is ongoing monitoring critical for BSA compliance?
• In which situation must a credit union verify a member's identity?
• What is a requirement for ongoing member due diligence in an effective BSA/AML compliance program?
• Are purchases of different types of monetary instruments totaling $3,000 or more treated as one purchase?
• Which group plays a vital role in ensuring effective BSA compliance?
• What is the primary role of training in BSA compliance?
• How is "reputation risk" linked to BSA compliance?
• What is the purpose of employee training in relation to BSA?
• What does the "Know Your Customer" (KYC) principle entail?
• What is required in a credit union's records of sales if a purchaser does NOT have an account?
• Must a credit union verify the accuracy of all the identifying information it collects during the CIP process?
• What triggers the filing of a Marijuana Priority SAR?
• Why is "due diligence" considered important in BSA compliance?
• In BSA compliance, what is considered a suspicious activity?
• What is one requirement that MSBs have when dealing with credit unions?
• Must a credit union identify beneficial ownership for each account opened by a legal entity member?
• When opening an account, what must most Money Services Businesses (MSBs) provide to credit unions?
• When should a credit union file a Marijuana Limited SAR?
• Why are MSBs required to have effective BSA/AML programs?
• What action should a credit union take after reporting a positive match to a 314(a) request?
• What is a General License issued by OFAC?
• Which methods can a credit union use for identity verification?
• When should a credit union ideally verify a member's identity?
• Is the credit union's board of directors ultimately responsible for BSA compliance?
• Why is retaining original account opening information important for credit unions?
• Which of the following is a primary goal of BSA compliance?
• Why is it important for financial institutions to report suspicious activities?
• How often must a financial institution file a CTR after a transaction?
• Is a credit union classified as an MSB?
• What is the first step in a funds transfer?
• What does a Phase I designation exempt?
• Is a credit union allowed to set a lower ownership threshold than 25% for beneficial ownership?
• When should a credit union file a Marijuana Termination SAR?
• Which of the following is NOT considered a legal entity?
• What is a key feature of 314(a) requests?
• How often must financial institutions conduct risk assessments under the BSA?
• Can a credit union rely on existing information to verify a beneficial owner who is already a member?
• What is a Currency Transaction Report (CTR)?
• What is one additional requirement of the MDD process beyond the CIP requirements?
• What information should financial institutions gather from high-risk customers?
• What should MSBs do if they become aware of unlawful activities related to their services?
• What type of entities are only subject to the control criteria prong in the definition of "beneficial owner"?
• What is a significant aspect of the credit union's procedures for SAR investigations?
• What does SDN stand for in compliance terminology?
• Which of the following is an example of suspicious activity that should be reported?
• Which of the following does NOT fall under the identification and verification rules?
• What is the role of the Financial Crimes Enforcement Network (FinCEN)?
• How often must financial institutions review and update their CIP procedures?
• Who is automatically exempt from CTR reporting?
• How often must credit unions review granted exemptions for both Phase I and Phase II?
• What aspect of accounts does OFAC recommend screening during periodic reviews?
• Which stakeholders must be made aware of a financial institution's AML program?
• What are "Pseudonyms" in financial transactions?
• How does improper compliance with the BSA potentially affect financial institutions?
• In terms of BSA compliance, what is the significance of a FinCEN registration number?
• A credit union must file a CTR if a member purchases $15,000 worth of traveler's checks with money from their checking account.
• What is included in the ownership criteria of the beneficial owner definition?
• What is a key component of an effective BSA compliance program?
• Which of the following best describes money laundering?
• Does the CIP rule allow a minor to open an account?
• What type of entities does a Phase II designation primarily exempt?
• How should credit unions handle updates to member information?
• Is the BSA training for personnel optional?
• What is the primary purpose of filing a SAR?
• What kind of financial activity can raise suspicions and lead to a SAR?
• What must a credit union retain during the account opening process?
• What is meant by "third-party risk" in the context of BSA compliance?
• What is the primary purpose of Anti-Money Laundering (AML) programs?
• What does "due diligence" require institutions to do?
• What does "suspicious behavior" typically include?
• How should credit unions report positive matches to 314(a) requests?
• What are potential penalties for non-compliance with BSA regulations?
• Does a credit union have any CIP obligations regarding clients whose funds are held in IOLTA or escrow accounts?
• Which of the following best describes a potential factor influencing a financial institution's CIP procedures?
• Which license permits categories of transactions without the need for individual approval?
• What is one method a credit union can use to identify beneficial owners of business accounts?
• What is the significance of recordkeeping in BSA?
• Which of the following is NOT considered an MSB under BSA guidelines?
• What records of the BSA training program do credit unions need to keep?
• How often do regulators recommend that independent tests of the BSA program be conducted?
• What kind of transactions typically require enhanced due diligence?
• What kind of transactions might OFAC prohibit under its regulations?
• What federal agency oversees the regulation of MSBs?
• What must a credit union's Customer Identification Program procedures describe?
• Which parties are subject to OFAC requirements in an ACH transaction?
• To obtain a CTR exemption, what must a credit union file with FinCEN?
• What is the maximum percentage of gross revenues a business can derive from ineligible activities under Phase II?
• Which agency is primarily responsible for enforcing the Bank Secrecy Act?
• What role does the Office of Foreign Assets Control (OFAC) play in BSA compliance?
• What does Section 314(b) of the USA Patriot Act allow?
• What does "transaction risk" refer to in the context of BSA?
• Which of the following best describes "money laundering"?
• What should a credit union do if they cannot verify a member's beneficial ownership identity?
• Which of these is an important component of effective BSA compliance?
• Which statements are true regarding SAR filing requirements?
• Which of the following products may pose a higher risk for illegal activities?
• What is the primary goal of the Bank Secrecy Act (BSA)?
• What must all "transmittor financial institutions" include in the transmittal order?
• Which of the following is NOT a required part of the OFAC program?
• What constitutes an "illegal source" of funds under BSA?
• Which of the following statements is true regarding credit unions and Money Services Businesses (MSBs) in relation to the Bank Secrecy Act?
• What does SISS stand for in the context of credit unions?
• What does a Specific License allow an applicant to do?
• What is a "Compliance Officer's" role in BSA?
• Which types of institutions are required to comply with the Bank Secrecy Act (BSA)?
• Which of the following is true regarding the treatment of blocked funds?
• Both blocked and rejected transactions must be reported to OFAC within how many business days?
• What occurs when a credit union blocks a transaction?
• How often does BSA training need to be conducted?
• What does the term “smurfing” refer to in the context of money laundering?
• What is a beneficial owner in corporate structures?
• What kind of transactions typically trigger the need for a CTR?
• What is a key outcome of effective AML programs?
• Is it true that BSA/AML training should be tailored to the person's specific responsibilities?
• What must a credit union's OFAC program include?
• What does the BSA's "Travel Rule" require?
• Which piece of information is NOT required from the transmittor in the transmittal order?
• Are 314(a) requests confidential?
• How often must a credit union notify their board of directors about SAR filings?
• What does Section 326 of the USA Patriot Act require financial institutions to do when a person seeks to open an account?
• In which situation must a credit union file a SAR for transactions of $5,000 or more?
• Which of the following is NOT a way to identify beneficial owners of business accounts?
• How many reportable currency transactions must occur for a non-listed business under Phase II?
• True or False: An attorney opening an IOLTA account should be treated as the beneficial owner of the legal entity account.
• What is the definition of a beneficial owner according to control criteria?
• What document might a bank file if they suspect a customer is involved in money laundering?
• Under the ownership prong, how many individuals can be classified as beneficial owners?
• Which of the following defines the control criteria for a beneficial owner?
• What are “finCEN advisories”?
• True or False: The time period for filing a SAR can be extended to 60 days if no suspect can be identified.
• What type of report is due annually concerning blocked property?
• What are the five pillars of an effective BSA/AML compliance program?
• Which category is NOT considered an MSB?