AML
The laws and regulations designed to stop the practice of generating income through illegal actions.
Anti-Money Laundering
BSA
What is Bank Secrecy Act?
What does SAR stand for?
Suspicious Activity Report
When is a Large Cash Transaction Report required?
A Large Cash Transaction Report is required when the total sum of cash deposits made into a member's account reaches $10,000 or more within a consecutive 24-hour window.
Criminals almost always launder money solely through banks & other financial institutions. Therefore, anti-money laundering compliance is not a serious issue for other types of business.
What is False - laundering can be done through other businesses and avenues such as casinos, money transfer or other means.
A report the US requires to file with FinCEN for each currency transaction involving more than $10,000.
Currency Transaction Report (CTR)
KYC
What is Know Your Customer?
True or False: Reporting suspicious activity is a requirement of the Bank Secrecy Act.
True - All suspicious activity must be reported in a timely manner
What is it called when an individual or institution makes a series of smaller deposits to avoid the transactions being reported?
What is Structuring or Structuring deposits?
Money Laundering only refers to the laundering of illegal funds & not illegal assets
What is False? Illegal funds & assets
A document that must be filed/completed, when a customer engages in transactions that are out of the norm, or suspected incident of money laundering or fraud.
Suspicious Activity Report (SAR)
PEP
What is a Politically Exposed Person?
Name three things that may warrant the filing of a SAR.
Structuring, drug trafficking, human trafficking, money laundering, illegal weapon sales, terroristic activities, tax evasion, exploitation, Identity Theft, etc.
The continuous observation of client transactions.
What is Ongoing Transaction Monitoring?
Terrorist organizations can obtain money to source their activities from legitimate organizations such as charities & religious groups
What is True.
Deliberate ignorance and failure to follow up in the face of information that suggests probable money laundering or illicit activity.
What is Willful Blindness?
EDD / CDD
What is Enhanced Due Diligence / Customer Due Diligence?
True or False: You may inform a member that a SAR is being filed on them.
False - Members CANNOT be informed that a SAR is being filed on them.
What BSA forms do we use in our department?
What is CTR and SAR?
Money launderers are generally criminals trying to hide money from the drug trade?
What is False - money can be from other illegal activities.
A U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering.
Bank Secrecy Act (BSA)
OFAC
What is Office of Foreign Assets Control?
True or False: Scams are a fraud issue and does not warrant the filing of a SAR.
False - Some scams do require the filing of a SAR, depending on the exact circumstances.
Name a few cash intensive businesses.
What are make-up artists, barbershop owners, restaurants, casinos, nail salons, convenience stores, liquor stores, etc.
Source of Wealth is understanding how the client earned the assets they own.
What is True.