Ch 8: Money Laundering

Question 1

What is the threshold dollar amount that triggers the need to file a currency transaction report (CTR) under the Bank Secrecy Act?

Answer 1

More than $10,000. Financial institutions must file a CTR for transactions exceeding $10,000. The CTR must be filed within 15 days of the transaction (25 days if filed electronically).

Question 2

Under the Bank Secrery Act, as amended, what must a bank do if its customer engages in a transaction that is not the type of transaction that the customer normally would be expected to engage in?

Answer 2

• File a suspicious activity report (SAR) within 30 days of the transaction (60 days if filed electronically).
• Notify its board of directors that a SAR was filed.
• Not notify the customer that the SAR was filed.

Question 3

In general, how long must a financial institution keep records required to be kept under the Bank Secrecy Act, as amended?

Answer 3

5 years

Question 4

What are the dollar threshold and limit for triggering the monetary instrument sales records requirement under the Bank Secrecy Act?

Answer 4

$3,000-$10,000, inclusive. Financial institutions must keep records of the identity of persons purchasing monetary instruments for $3,000-$10,000, inclusive. The records are not filed with the government.