KYC
This is the process of verifying a customer's identity and understanding their financial behavior.
What is Know Your Customer (KYC)?
This technique involves splitting transactions to avoid reporting thresholds.
What is structuring?
This report is filed when suspicious activity is detected in a financial account.
What is a Suspicious Activity Report (SAR)?
This report is filed for cash transactions over $10,000 in a single day.
What is a Currency Transaction Report (CTR)?
This is the appropriate action when a personal account receives a large international wire with no clear purpose.
What is investigate and consider EDD or SAR filing?
This enhanced process is used for high-risk customers beyond standard due diligence.
What is Enhanced Due Diligence (EDD)?
This term describes the use of multiple individuals to conduct transactions to avoid detection.
What is smurfing?
This is the timeframe for filing a SAR after detecting suspicious activity.
What is 30 calendar days?
This is the threshold amount that triggers a CTR filing.
What is $10,000.01 in cash?
This might be indicated if a business deposits large amounts of cash but reports low sales.
What is possible money laundering or underreporting?
When a customer refuses to provide information about their source of funds, this is the appropriate next step.
What is escalate the case and consider filing a SAR?
This red flag is raised when funds are deposited and quickly withdrawn with no clear purpose.
What is rapid movement of funds?
These five elements should be included in a SAR narrative to clearly explain the suspicious behavior.
What are the who, what, when, where, and why?
This applies when cash deposits are made at different branch locations and aggregate over $10,000.
What is filing a CTR?
This is the concern when a customer frequently deposits checks made out to other people.
What is potential check fraud or third-party laundering?
This term refers to understanding where a customer's money comes from and where it goes.
What is source and use of funds?
This concern arises when transactions involve countries with weak AML controls.
What are high-risk jurisdictions?
This is the reporting requirement when a customer is involved in both structuring and fraud.
What is include both behaviors in the SAR narrative?
This illegal act involves breaking up transactions to avoid CTR filing.
What is structuring?
This might be suggested by frequent round-dollar international wires to unrelated individuals.
What is unlicensed money service business transmission?
This process involves identifying inconsistencies in customer-provided information across accounts.
What is conducting a KYC review?
This red flag appears when a business has no online presence but claims high-volume sales.
What is a potential front company or misrepresentation of business activity?
This is the term for documenting suspicious activity even if the source or purpose is unclear.
What is filing a SAR with reasonable suspicion?
This is what you should do if a customer deposits $8,000 in the morning and $4,000 in the afternoon.
What is file a CTR because the total exceeds $10,000?
These are the AML implications of a customer linked to a shell company with no physical presence.
What is high risk for money laundering or sanctions evasion?