Bank Secrecy Act/Currency and Foreign Transaction Reporting Act Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Sector

A

Financial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Year passed/amended

A

1970; modified by USA PATRIOT Act (2001)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Original purpose

A

Prevent money laundering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Primary requirements

A

Banks must keep extensive records and report certain types of transactions which may be relevant to criminal, tax or regulatory proceedings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Entities subject to the law

A

“Financial institutions” (different from GLBA): banks; securities brokers and dealers; money services businesses; telegraph companies; casinos; card clubs; and other entities subject to state or federal bank supervisory authority.

Applies to currency transactions, transportation of monetary instruments and the purchase of currency-like instruments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Term for relevant PII or regulated data

A

Not defined in a single term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Definition of relevant PII or regulated data

A

Name, address, SSN of purchaser, date of purchase, type of instrument, dollar amount, serial number of instrument if applicable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Civil or criminal?

A

Both

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Enforcing authority - civil

A

IRS, Treasury

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Penalties - civil

A

Greater of $25,000 or the amount of the transaction, up to $100,000; plus $500 per negligent violation, plus $5,000 per day for failure to comply with regulations, plus $25,000 per day for failing to comply with PATRIOT Act information-sharing requirements.

Up to $1 million for financial institutions that fail to comply with due diligence requirements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Enforcing authority - criminal

A

Treasury?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Penalties - criminal

A

Up to $100,000 fine and/or one year imprisonment, or up to $10,000 and five years imprisonment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Preemption?

A

N/A (federal crimes only)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

FIP individual rights provided

A

None

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

FIP control practices addressed

A

None

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

FIP information lifecycle practices addressed

A

Use and retention, disclosure (not collection/disposal)

17
Q

Use and retention requirements

A

For extensions of credit greater than $10,000, except credit secured by real property, must keep records ““with a high degree of usefulness.”” Must include name, address, credit amount, purpose and date of credit. Must keep record for 5 years.

For deposit accounts, must keep record of depositor’s TIN, signature cards, and checks >$100.

For CDs, must keep name, address, description of CD and date of transaction

For wire transfers and direct deposits, must keep all deposit slips or credit slips for transactions >$100.

Note: transactions through ATMs, automated clearinghouses, and point-of-sale systems exempted.

18
Q

Disclosure requirements

A

Have to provide all of the retained info to aid in an investigation.

Must file a Suspicious Activity Report with Treasury when FI suspects a crime involving:

(1) an insider, regardless of amount;
(2) >=$5000 and has a basis for IDing a suspect;
(3) >=$25,000;
(4) currency transactions aggregating >=$5,000 that involve potential money laundering

PATRIOT Act: Information-sharing requirements

19
Q

Right to list of disclosures?

A

No

20
Q

FIP management principles addressed

A

Administration, monitoring and enforcement (i.e. both)

21
Q

Administration requirements

A

PATRIOT Act: must develop and implement anti-money laundering programs

22
Q

Monitoring and enforcement requirements

A

Suspicious activity reports required:
Must file a Suspicious Activity Report with Treasury when FI suspects a crime involving:
(1) an insider, regardless of amount;
(2) >=$5000 and has a basis for IDing a suspect;
(3) >=$25,000;
(4) currency transactions aggregating >=$5,000 that involve potential money laundering