Test 3

Question 1

How many days after a qualifying currency transaction should a CTR be filed

Answer 1

15 days

Question 2

BSA allows certain business to be exempted from CTR requirements, there also are certain businesses that are not allowed to be exempted. However a business that engages in multiple transaction activities can qualify as an exemption organization even if some of its business interests are listed as non exempt

Answer 2

True

Question 3

The purpose of voluntary information sharing outside allowed under safe harbor rules is…

Answer 3

identify and report activities that may involve terrorist activity or money laundering

Question 4

Monetary Instruments include…

Answer 4

bank checks, money orders, travelers checks

Question 5

When a customer purchases a monetary instrument in the amount of ___ or more, the bank is required to verify the identify of the person

Answer 5

$3,000-$10,000

Question 6

BSA funds transfer regulations contained what is referred to as “the travel rule” when funds transfers of $3,000 or more the travel rule requires

Answer 6

identity of the transmitter, beneficiary institution, beneficiary on the transmittal order

Question 7

BSA prohibits US banks from

Answer 7

establishing correspondent accounts with shell banks

Question 8

When the CDD or the EDD for a foreign correspondent account cannot be preformed

Answer 8

refuse to open the account, close the account, suspend transaction activity

Question 9

In order for a banking relationship to be considered private banking it must have…

Answer 9

min of 1 million dollars, established on behalf of or for the benefit of one or more non-US persons, is assigned to be administered by, in whole or in part, by an officer, employee or agent of a bank acting as a liaison between financial institution

Question 10

A particular concern to banks which have private banking relationships are senior foreign political figures who are often referred to as…

Answer 10

Politically Exposed Person

Question 11

If a US citizen has more than ___ in a foreign account during the year he must file an FBAR report.

Answer 11

$10,000

Question 12

A CMIR must be filed when a specific amount of ___ is shipped out of the US

Answer 12

Currency, money orders, or travelers checks

Question 13

CMIR reports are triggered by…

Answer 13

$10,000

Question 14

OFAC is an office of…

Answer 14

Department of Treasury

Question 15

A form of bank correspondence with one US bank and one foreign financial institution are controlled by the same person or group of persons who are closely associate in their business dealing but not subjected to consolidating supervision are known as…

Answer 15

Parallel Banking

Question 16

A nested account is one in which

Answer 16

a foreign financial institution gains access to the US financial system through a different financial institutions correspondent account

Question 17

When US banks receives bulk shipments of cash they are required to report the receipt or disbursement of bulk shipments when it exceeds…

Answer 17

$10,000

Question 18

US dollar draft

Answer 18

a bank draft or bank check denominated in US dollars made available at foreign financial institutions

Question 19

What are PTAs used for

Answer 19

the banking of foreigners in the US

Question 20

How do PTA users access money in their accounts

Answer 20

by using special checks issued by their banks

Question 21

Pouches are used to transport currency, monetary instruments and other documents from ___ to financial institution from the ___

Answer 21

outside the US, inside the US

Question 22

There are many risks to electronic banking, they include

Answer 22

deposits may be used by a front company or an unknown third party