Bank Secrecy Act

Question 1

What are the goals of the BSA?

Answer 1

• Preventing and detecting money laundering and the financing of criminal activity
• Documenting large currency transactions
• Improving the reporting requirements to aid in the investigation of financial crimes

Question 2

What does the BSA stand for?

Answer 2

Bank Secrecy Act (BSA)

Question 3

When was the last time the BSA was ammeneded?

Answer 3

In 2001 by the USA PATRIOT ACT

Question 4

Who enforces the BSA?

Answer 4

The Financial Crimes Enforcement Network (FinCEN) enforces the Bank Secrecy Act (BSA).

Question 5

What are examples of financial institutions that adhear to the BSA?

Answer 5

• Banks
• Securities brokers or dealers
• Entities engaged in money services
• Casinos
• Loans or finance companies, which include mortgage entity licensees and individual loan originators

Question 6

What does the BSA require financial institutions develop and implement?

Answer 6

A written anti-money laundering program that is reasonably designed to prevent the institution from being used to facilitate money laundering or the financing of terrorist activities

Question 7

Who must approve the anti-money laundering program (AML)?

Answer 7

Senior Management

Question 8

What must the AML program do/include?

Answer 8

• Institute policies and procedures, based on its risk assessment, to detect money laundering and possible terrorist financing
• Designate a compliance officer to ensure the AML program is implemented effectively and updated regularly or as necessary
• Provide for education and training related to the AML program for the entity’s employees
• Provide for ongoing training of staff with regards to their responsibilities under the program
• Ensure independent testing to monitor and maintain the program, the frequency of which should be based on the entity’s risk assessment

Question 9

What is a Suspicious Activity Report?

Answer 9

A report to track/monitor suspicious activity

Question 10

What violations require a SAR to be submitted?

Answer 10

1. Criminal violations that:
   - Involve insider abuse in any amount
   - Total $5,000 or more if a suspect can be identified, or
   - Total $25,000 or more, whether a suspect is identified or not
2. Transactions that total $5,000 or more if the bank knows or suspects that the transaction:
   - May involve money laundering or other criminal activity
   - Attempts to evade the BSA
   - Has no legitimate purpose, or
   - Is not typical for the customer

Question 11

How long does an insitution have to submit a SAR?

Answer 11

A SAR must be submitted within 30 days of detection of a possible violation

Question 12

Can an institution disclose that a SAR has been revealed or filed?

Answer 12

No they may not disclose a SAR or reveal that one has been filed, except to FinCEN

Question 13

What transactions must institutions report to the FinCEN?

Answer 13

Any single or structured currency transactions which exceed $10,000 in a single day.

Question 14

What is a Currency Transaction Report?

Answer 14

A currency transaction is any deposit, withdrawal, exchange, or other payment or transfer that involves currency.

Question 15

How long does an institution have to file a CTR to FinCen?

Answer 15

A CTR must be filed within 15 days of a reportable transaction

Question 16

How many years must an institution retain records of CTRs?

Answer 16

A company must retain copies in its records for at least five years