Podcast
Questions and Answers
What is the maximum time frame allowed to file a Suspicious Activity Report (SAR) after an incident?
What is the maximum time frame allowed to file a Suspicious Activity Report (SAR) after an incident?
- 30 days (correct)
- 60 days
- 15 days
- 45 days
Which of the following incidents definitely requires filing a SAR?
Which of the following incidents definitely requires filing a SAR?
- Normal business transactions
- Attempts to evade the BSA (correct)
- Transactions that can be explained
- Genuine customer inquiries
Who is responsible for filing the Suspicious Activity Report (SAR)?
Who is responsible for filing the Suspicious Activity Report (SAR)?
- Any available staff member
- The operations manager
- The financial analyst
- The designated compliance officer (correct)
For how long must SAR records be maintained by institutions?
For how long must SAR records be maintained by institutions?
What action can a company take in addition to filing a SAR if immediate attention is necessary?
What action can a company take in addition to filing a SAR if immediate attention is necessary?
What is the primary purpose of the Bank Secrecy Act?
What is the primary purpose of the Bank Secrecy Act?
Who is responsible for administering the BSA?
Who is responsible for administering the BSA?
Which of the following is NOT a minimum requirement for an anti-money laundering program under the BSA?
Which of the following is NOT a minimum requirement for an anti-money laundering program under the BSA?
What role does the compliance officer play in an anti-money laundering program?
What role does the compliance officer play in an anti-money laundering program?
Which of the following entities must comply with BSA recordkeeping requirements?
Which of the following entities must comply with BSA recordkeeping requirements?
What is one of the responsibilities of the anti-money laundering training program?
What is one of the responsibilities of the anti-money laundering training program?
FinCEN has extended BSA/AML requirements to include which of the following?
FinCEN has extended BSA/AML requirements to include which of the following?
The Bank Secrecy Act requires banks to file reports useful for which of the following purposes?
The Bank Secrecy Act requires banks to file reports useful for which of the following purposes?
Flashcards
Bank Secrecy Act (BSA)
Bank Secrecy Act (BSA)
A set of US laws and regulations to prevent money laundering and terrorist financing.
Anti-Money Laundering (AML)
Anti-Money Laundering (AML)
Part of the BSA, focusing on preventing money laundering.
BSA/AML Compliance Program
BSA/AML Compliance Program
Required plan for banks to prevent and detect money laundering and terrorist financing.
Recordkeeping Requirements
Recordkeeping Requirements
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Compliance Officer
Compliance Officer
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Training Requirements
Training Requirements
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Independent Testing
Independent Testing
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FinCEN
FinCEN
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Suspicious Activity Report (SAR)
Suspicious Activity Report (SAR)
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Designated Compliance Officer
Designated Compliance Officer
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Reporting Timeframe
Reporting Timeframe
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Confidentiality of SARs
Confidentiality of SARs
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Study Notes
Bank Secrecy Act/Anti-money Laundering (BSA/AML)
- The Bank Secrecy Act (BSA) is a series of US laws and regulations to combat money laundering and terrorist financing.
- It aims to promote financial transparency and deter/detect those misusing the US financial system.
- BSA/AML compliance programs are mandatory for banks and other financial institutions.
- The Secretary of the Treasury, via FinCEN (Financial Crimes Enforcement Network), oversees BSA/AML.
- FinCEN extended these requirements to non-depository residential mortgage lenders/originators.
Requirements for BSA/AML Compliance
- Financial institutions must implement a written BSA/AML program.
- This program must cover money laundering and terrorist financing risks for all agents/brokers.
- A compliance officer is designated, responsible for program implementation, updates, and staff training.
- Training must be provided to personnel regarding their responsibilities.
- Regular independent testing is necessary to monitor program adequacy and confirm compliance.
Reporting Requirements (Suspicious Activity Reports-SARs)
- Companies must file SARs with FinCEN for suspicious transactions.
- Suspicious transactions include those related to attempted or actual money laundering, evading BSA requirements, transactions without apparent lawful purpose, or those facilitating criminal activity.
- SARs are filed online through FinCEN's process.
- SARs must be filed within 30 days of the incident, with a potential 30-day extension if no suspect is identified.
- If immediate action is needed, notifying law enforcement is an option alongside filing a SAR.
- SAR records are highly confidential and must be kept for 5 years.
- Sharing information to combat money laundering schemes is permissible.
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Description
This quiz covers the essentials of the Bank Secrecy Act (BSA) and the requirements for Anti-money Laundering (AML) compliance in financial institutions. Topics include the establishment of compliance programs, designation of compliance officers, and the importance of training and independent testing. Test your knowledge of these critical regulations and their impact on financial transparency.
