Regulations and Regulators
The acronym "BSA" stands for this.
What is Bank Secrecy Act?
An attempt to avoid CTR reporting by conducting cash transactions in multiple and/or smaller amounts under the reporting threshold is called this.
This term means moving “dirty money” (funds from illegal enterprises) through financial systems to disguise the origin of the funds and make them appear legal or “clean”.
What is Money Laundering?
The acronym "KYC" means/stands for this
This kind of risk is faced by a financial institution when there is a failure in its internal processes (policies, procedures, systems, etc.)
What is Operational Risk?
Which Regulatory Report CAN a financial institution tell a customer it is filing - a CTR OR a SAR?
What is a CTR?
This US Regulation added the formal requirement for financial institutions to obtain and verify information on all customers' identities.
What is USA PATRIOT Act?
This term is used for the warning signs that banks have created to indicate potentially suspicious or risky activity.
What are Red Flags?
These are the three stages of Money Laundering.
What is Placement, Layering, Integration?
This part of a financial institutions KYC is to obtain increased due diligence information to mitigate risk posed by the institution's High Risk Customer Group.
What is Enhanced Due Diligence?
This type of business entity is when an individual owns an unincorporated business by himself or herself.
What is a Sole Proprietorship?
Geography, Products/Services, Customers
A financial institution must file a Currency Transaction Report for cash activity exceeding this amount.
What is $10,000?
Intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.
What is Fraud?
This financial crime uses funds to support the agenda, activities, or cause of a terrorist organization.
What is Terrorist Financing?
Under a financial institution's CIP policy, which piece of information is NOT required by Regulation for each customer?
(1) Name
(2) Tax ID Number
(3) Occupation
(4) Date of Birth
What is (3) Occupation?
ACH Transfers, Wire Transfers, Virtual Currency, Mobile Payments, and Direct Deposits are all examples of what kind of financial transactions?
What are Electronic Funds Transfers?
Purchasing luxury assets such as property, artwork, jewelry, high-end automobiles is an example of what stage of Money Laundering?
What is Integration?
This US Regulatory Agency is part of the United States Treasury Department, is the primary agency to oversee and implement policies to prevent and detect money laundering, and is the recipient of filed CTRs and SARs.
What is FinCEN?
If this type of account suddenly becomes active without a plausible explanation, a financial institution will need to investigate for potential illegal activity.
What is a Dormant Account
This type of compliance related activity is conducted by a financial institution to detect suspicious activity and respond in a timely manner, by reviewing alerted transactions.
What is Transaction Monitoring?
Give an example of a document that would be acceptable for a business entity customer's CIP verification
What is:
Articles of Incorporation/Certification of Inc.
Signed Corporate Resolution
Signed Minutes
Complete Bylaws
This type of electronic transfer requires information including Recipient Bank name, Swift Code #, and Delivery Instructions.
What is a Wire Transfer?
Name at least three of the five required components of a Financial Institution's BSA Program:
What are: (1) Internal Controls (2) Independent Testing (3) Designation of a BSA Officer (4) Training (5) Customer Identification Program
A financial institution has this many days from the date of determining potentially illegal activity has occurred to file a Suspicious Activity Report.
What is 30 days?
This type of fraud occurs when someone illegally or improperly using money or belongings of an individual over the age of 60 for their own personal use.
What is Elder Financial Abuse/Exploitation?
A person who ultimately owns or controls a business entity.
What is a Beneficial Owner?
This term refers to the High Risk Customer Type of foreign individuals who are or have been entrusted with a prominent public function, as well as their immediate family members and close associates, or a senior foreign political official.
What is Politically Exposed Person?
Money Service Businesses (MSBs), Third Party Payment Processors (TPPPs), Insurance Providers, and Capital Markets are all examples of what types of businesses?
What are Non-Bank Financial Institutions?
This Regulatory Report allows institutions to share information with each other about suspected money laundering or other illegal activity.
What is a 314(b) Report?