THE BANK SECRECY ACT Flashcards
What triggers the filing requirements for the Currency Transaction Report (CTR) and what is the time frame for filing the report?
A credit union must complete and submit a CTR each time it takes a deposit, gives a withdrawal, or exchanges currency if the transaction involves currency of more than $10,000. Also, if multiple same-day transactions result in total cash into or out of the credit union in excess of $10,000, a CTR must be filed.
The report must be filed within 15 days after the transaction takes place.
The BSA allows credit unions to exempt certain transactions from the general CTR reporting requirements. These transactions generally have little value in assisting law enforcement investigations. List the categories of potential
“exempt persons” listed in the Act.
Potential exempt persons categories: 1) Any entity (other than a credit union or bank) whose common stock is listed on the New York, American or NASDAQ stock exchanges (with some exceptions) ”; 2) Any subsidiary (other than a credit union or bank) of any “listed entity” that is organized under U.S. law and at least 51 percent of its stock is owned by
the listed entity; 3) A business—other than a publicly listed corporation or subsidiary as listed above—that has maintained a transaction account with the credit union for at least 2 months; “frequently” (at least five per year) engages in transactions in currency with the credit union in excess of $10,000; and is organized or incorporated under the law of the U.S. or a state. (Section 1020.315 referred to in the regulation as “non-listed businesses);” 4) A person or business that has maintained a transaction account with the credit union for at least 2 months; operates a firm that regularly withdraws more than $10,000
in order to pay its employees in currency; and is incorporated or organized under the laws of the U.S. or state. (Section 1020.315 referred to in the regulation as
“payroll customers”).
From time to time, FinCEN may determine that circumstances warrant additional recordkeeping and reporting requirements under the BSA within a certain geographic area. This is called “geographic targeting.” What are some of the special reporting requirements that might be involved as part of this special order?
The credit union will receive a special order clearly describing the transactions to be reported as well as: 1) dollar amount of transactions subject to the special reporting; 2) types of transactions subject to the special reporting; 3) use of special forms for filing the reports; 4) the address to send the reports to; 5)
starting and ending dates for reporting the transactions; 6) name of a Treasury official to contact with questions; and 7) the length of time to retain the
information and reports generated.
What does BSA require credit unions to do when a member purchases cashier’s checks, teller’s checks, money orders, or other monetary instruments in amounts of $3,000 to $10,000 if the purchase is made in currency?
The credit union must maintain a record of: 1) the member’s name; 2) the date of purchase; 3) the type of instrument purchased; 4) the serial number of the
instrument; and 5) the dollar amount of the transaction.
The BSA specifically excluded certain businesses from qualifying for exempt person status if they engage in certain business activities. List five of these
business activities.
Groups engaged in the following businesses are ineligible for exempt person status: 1) service as a nonbank financial institution or agents of nonbank
financial institutions; 2) purchase or sale to customers of motor vehicles of any kind, vessels, aircraft, farm equipment, or mobile homes; 3) the practice of law, accountancy, or medicine; 4) auctioning of goods; 5) chartering or operation
of ships, buses, or aircraft; 6) gaming of any kind except licensed parimutuel betting at race tracks; 7) investment advisory or investment banking services;
8) real estate brokerage; 9) pawn brokerage; 10) title insurance and real estate closing; 11) trade union activities; and 12) any other activities that may be
specified by FinCEN.
Under the USA PATRIOT Act, what form must be filed with FinCEN before a credit union can share information with another financial institution?
An annual notification.
NCUA requires all federally insured credit unions to have a written Bank Secrecy Act compliance plan that has been approved by the board of directors. This plan must include four separate items. List three of those requirements.
The Bank Secrecy Act plan must include: 1) a system of internal controls to ensure continuing compliance, 2) provide for independent testing for compliance by either credit union personnel or outside parties, 3) designate an individual to coordinate and monitor daily compliance, and 4) provide training for appropriate personnel.
What four pieces of personal information must be collected from a member opening their first account with the credit union?
The credit union must collect: 1) name, 2) date of birth (for an individual), 3) a residential or business street address, 4) identification number (SSN, EIN, ITIN, passport number, etc.)
The credit union is only required to verify the new member’s identity to the extent that it forms a “reasonable belief that it knows the true identity of the person.”
True OR False
True
After the person’s identity has been verified, are there any other requirements of the CIP rules?
Yes. The name must be checked against government lists.
Posting a notice of the identity verification requirements in the credit union lobby is all the regulation requires.
True OR False
False. The notice must be placed or given so that members opening accounts through the various methods the credit union offers see the notice prior to opening the account.
