General Operations Flashcards
The two major requirements of the Bank Secrecy Act and regulations are the Reporting and the Record Keeping
When a member conducts a currency transaction that exceeds $10,000, the credit union has no duty to notify the member that it must file a CTR. True or False
True
In order to receive a “payroll customer” exemption form the CTR reporting requirements, a company must have maintained a transaction account at the credit union for at least two months, regularly withdraw over $10,000 in currency to pay employees and be incorporated under US or state laws. True or False
True
This exemption can be used for deposits as well. True or False
False
The special order geographic reporting requirement of the BSA (a section 5326 order) is nothing more than an order from Treasury requiring the filing of CTRs at a specified currency transaction threshold of $10,000 or less
When the Treasury Department orders geographic targeting
1) the dollar threshold for filing CTRs may be lower than the normal threshold amount
2) the notice of the special order will be directed to the credit union’s CEO
3) the notice will outline the types of transactions that are subject to the order
True
The credit union must keep a record of monetary instruments purchased with cash but is not required by regulation to keep a log
True
The requirements of the Credit Unions BSA Compliance Program are
1) be in writing and approved by the Board of Directors
2) have ongoing training on the BSA for the credit union’s employees
3)have independent testing for the credit union’s compliance with the3 BSA’s requirements
The NCUA Rules and Regulations Section 748.2 dealing with the BSA requirements for federal credit unions requires the credit union to file an annual report with the NCUA. true or false
False
The right to financial privacy act applies to all members of the credit union. True or False
False
The right to financial privacy act applies to federal government authorities, but not state and local government authorities. True or False
True
If a member grants a federal agency permission to examine her financial records, the permission form that she signs must include a provision for financial compensation for any inconvenience to the member. True or False
False
If a member authorizes the release of her records to a federal agency in writing, the statement must specify the purpose for the release of information, the name of the agency to receive the information, and that the member has the right to receive a copy of the records that are releases. Additionally, the member can revoke the authorization. True or False
True
If federal agents demand a member’s information under an exception to the RTFPA &, the credit union should make sure the release comes under an exception (typically by contacting its attorney) before releasing the information. True or False
True
If the credit union receives an administrative subpoena, the credit union should not release any records until it receives a certificate of compliance. True or False
The same would be True if the CU received a judicial subpoena. True or Fals
True
True
If federal agents present the credit union with a search warrant, the credit union should release only the information described in the warrant. True or False
True
Under the RTFPA records must be retained forever. True or False
True
When you sign an account card/form (a substitute W-9) you are certifying to the IRS that your name and SSN match, that you’re not subject to backup withholding and that you are a US person. True or False
True
The IRS considers mistakes in SSNs, addresses, last names and dollar amounts errors on information returns, which are subject to a penalty. True or False
True
If you started backup withholding on a member’s account because he failed to give you a SSN or a signed W09, you can stop backup withholding on the account when you receive either a SSN or a signed W09 from that member. True or False
True
1099-INTs & 1098s are sent to the IRS to ID all income and confirm the truthfulness of the member’s tax return.
True
IRS information returns (1099-IONTs or 1098s sent to members can include your CU’s newsletter or a loan promo. True or False
False
The purpose of Form 1099-C is to report forgiveness of a debit of more than $W600, where the debt forgiven was a) due to an agreement between the credit union and the member, b) per the credit union’s decision to discontinue collection activity on the account, or c) recorded on the credit union’s records for business or investment purposes and was discharged in bankruptcy. True or False
True
Once a member completes an IRS form W-8 BEN (claiming foreign status and exemption from backup withholding) the W-* BEN form is good for three years
A credit union that is required to apply backup withholding must notify the member within fifteen days after withholding begins.
The NCUA’s privacy regs define a “member” as an individual with a continuing relationship at the credit union. True or False
True
If a credit union does not anticipate disclosing information to affiliates or nonaffiliated third parties for marketing purposes, the credit union is completely exempt from the NCUA privacy regulations
False
Verbal privacy notices are OK if the member signs a statement acknowledging the receipt of the verbal notice. True or False
False
If your credit union provides nonpublic personal information with a nonaffiliated third party vendor for marketing purposes your credit union must provide a shortened, simplified notice.
True
