#1
What does BSA stand for in the context of financial regulations?
Banking Surveillance Act
Bank Secrecy Act
Business Security Agreement
Banking Security Alliance
#2
What is the primary objective of AML (Anti-Money Laundering) regulations?
To prevent the financing of terrorism
To ensure customer satisfaction
To maintain confidentiality of financial data
To deter the illegal activities of money laundering
#3
What is the purpose of the Customer Identification Program (CIP) in BSA/AML compliance?
To track customer loyalty
To identify and verify the identity of customers
To determine credit scores
To manage employee training
#4
Which law requires financial institutions to report certain cash transactions and suspicious activities to government agencies?
Sarbanes-Oxley Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
Gramm-Leach-Bliley Act
Bank Secrecy Act (BSA)
#5
In the context of BSA/AML, what is the purpose of the USA PATRIOT Act?
To promote international trade
To combat money laundering and terrorist financing
To regulate stock markets
To facilitate tax evasion
#6
What is the purpose of the FinCEN (Financial Crimes Enforcement Network) in the United States?
To regulate stock markets
To combat money laundering and financial crimes
To oversee international trade agreements
To manage tax collection
#7
Which agency primarily enforces BSA/AML regulations in the United States?
Federal Bureau of Investigation (FBI)
Internal Revenue Service (IRS)
Financial Crimes Enforcement Network (FinCEN)
Securities and Exchange Commission (SEC)
#8
What is the 'Know Your Customer' (KYC) principle in BSA/AML compliance?
A method of verifying the identity of clients
A strategy for marketing financial products
A system for tracking stock market trends
A framework for managing investment portfolios
#9
What is the Currency Transaction Report (CTR) threshold amount that triggers reporting to FinCEN in the United States?
$5,000
$10,000
$15,000
$20,000
#10
Which of the following is considered a red flag for potential money laundering activities?
Frequent small transactions with no apparent business purpose
Regular contributions to charity
Consistent and transparent financial records
Account holder providing accurate and complete information
#11
What is the role of a Suspicious Activity Report (SAR) in BSA/AML compliance?
To approve financial transactions
To monitor employee performance
To report potential illicit activities to authorities
To assess customer satisfaction
#12
Which customer information is typically required for Customer Due Diligence (CDD) in BSA/AML compliance?
Only name and address
Name, address, and date of birth
Name, address, date of birth, and social security number
Name, address, and email
#13
Which of the following is NOT a key component of an effective AML compliance program?
Customer Due Diligence (CDD)
Transaction Monitoring
Regular Tax Audits
Suspicious Activity Reporting (SAR)
#14
What is the role of a Designated Compliance Officer in the context of BSA/AML regulations?
Handling customer complaints
Ensuring compliance with regulatory requirements
Executing financial transactions
Managing marketing campaigns
#15
What is the purpose of Enhanced Due Diligence (EDD) in BSA/AML compliance?
To simplify customer onboarding
To provide discounts to high-value customers
To apply a more rigorous scrutiny to higher-risk customers
To expedite transaction processing
#16
Which of the following is a key requirement for an effective AML compliance program?
Frequent customer entertainment events
Regular deletion of customer records
Ongoing employee training and education
Limited customer communication
#17
Which entity is responsible for examining and supervising financial institutions for BSA/AML compliance?
International Monetary Fund (IMF)
Office of the Comptroller of the Currency (OCC)
World Bank
Federal Reserve System
#18
What is the purpose of the USA PATRIOT Act's Section 314(a) provision?
To regulate international trade
To facilitate tax evasion
To enhance information sharing among financial institutions and law enforcement
To establish customer loyalty programs