Ch 5 Deck 5

Question 1

A SAR is filed with

Answer 1

Department of Treasury’s Financial Crimes Enforcement Network (FinCEN)

Question 2

A SAR must be filed within

Answer 2

30 days of discovery (30 days after the date of initial detection of the facts that formed the basis for filing the SAR)

Question 3

When filing a SAR, the financial institution may not inform the client

Answer 3

that a SAR has been filed on them.

Question 4

All reports and documentation relating to MILs, CTRs, and SARs should be kept for

Answer 4

five years.

Question 5

Any activity having to do with sanctioned countries such as Cuba or North Korea should be reported to

Answer 5

OFAC (Office of Financial Assets Control)

Question 6

Any activity having to do with sanctioned countries must be reported to OFAC (Office of Financial Assets Control) within

Answer 6

10 days of discovery.

Question 7

OFAC is

Answer 7

(Office of Financial Assets Control)

Question 8

Employees of member firms are allowed to open up investment accounts at

Answer 8

other member firms.

Question 9

Spouses and minor children of employees of member firms are allowed to open up investment accounts at

Answer 9

other member firms.

Question 10

If an employee, Spouses or minor children of employee of a member firms opens up an investment accounts at another member firm, the employee must

Answer 10

notify both the employer member and the executing member of the other firm (don’t need prior APPROVAL - exam)

Question 11

If an employee of a member (or spouse/children) opens an account at another member firm, the executing member at that firm is obligated to notify

Answer 11

the member employer in writing of account opening (prior to executing any transactions).

Question 12

If an employee of a member (or spouse/children) opens an account at another member firm, the executing member at that firm is obligated to Provide

Answer 12

duplicate account statements to the employer member when requested.

Question 13

If an employee of a member (or spouse/children) opens an account at another member firm, the executing member at that firm is obligated to inform the associated person

Answer 13

of the executing member’s intention to provide account information to the employer member.

Question 14

If an employee of a member (or spouse/children) opens an account at another member firm, it is not necessary for the executing member to

Answer 14

receive prior approval from the employer member for each transaction in the associated person’s account.

Question 15

Member firms are required to regulate the outside

Answer 15

outside business activities of its representatives.

Question 16

Registered representatives are prohibited from being paid from another business activity unless

Answer 16

he/she provides prompt written notice to his/her supervisor before participating.

Question 17

Any securities transaction outside the regular scope of an associated person’s employment with a member is called a

Answer 17

a private securities transaction

Question 18

private securities transactions include

Answer 18

private placements

DPP’s

Question 19

Participation in a private securities transaction in which compensation is received requires

Answer 19

prior written notice to the employing firm with details of the transaction.

Question 20

When a member gives prior written notice of Participation in a private securities transaction The member firm will then

Answer 20

approve or deny the person’s participation.

Question 21

If a member approves of an associated person’s Participation in a private securities transaction

Answer 21

the associated person may participate in the transaction under supervision.

Question 22

If a member denies an associated person’s Participation in a private securities transaction

Answer 22

the person may not participate either directly or indirectly in the transaction.

Question 23

An associated person that wishes to participate in a private securities transaction in which he will not receive a selling commission is

Answer 23

still required to provide his member firm with prior written notice.

Question 24

An exception to the need for associated persons to seek permission from their firm to participate in a private securities transaction is

Answer 24

Transactions among family members where NO compensation is paid

Question 25

The “transactions among family members” exception to the need for associated persons to seek permission from their firm to participate in a private securities transaction defines family members as

Answer 25

parents
siblings
spouses
mother and father in-laws
sister and brother in-laws
son and daughter in-laws
any individual to which the person provides material support

Question 26

If you are raising capital for a company outside the US and where investors are outside of US and you find out the CEO bribes non-US government officials. Do you need to report?

Answer 26

You need to file an SAR under financial corrupt practices act.
File with FIU of that country
Also good to file SAR with FinCEN

Question 27

If you are raising capital for a company outside the US and where investors are outside of US and you find out the CEO bribes non-US government officials. Do you need to report?

Answer 27

You need to file an SAR under financial corrupt practices act.
File with FIU of that country
Also good to file SAR with FinCEN