BSA/ AML: The basics Exam with
Correct Answers
Bank Secrecy Act; the primary U.S. anti-money laundering law (AML) that attempts to
detect, deter, and disrupt money laundering. - ANSWER-What is BSA?
To establish a data trail to detect and prevent money laundering and other illegal
activities, such as drug transactions, tax evasion, usage of secret foreign bank accounts
and white-collar crimes. - ANSWER-Why was BSA designed?
* customer ID program (CIP)
* currency transaction reports (CTR)
* recordkeeping requirements
* suspicious activity reporting (SAR) - ANSWER-What are the major requirements of the
BSA?
1970 - ANSWER-What year was the BSA passed?
anti-money laundering - ANSWER-AML stands for what?
2001; specifically focuses on putting an end to terrorist activities - ANSWER-Define the
USA Patriot Act
a process whereby criminals engage in a series of transactions to exchange their "dirty"
funds for "clean" money - ANSWER-Define money laundering
drug trafficking, financial fraud, tax evasion, illegal arms sales, foreign official corruption,
terrorist financing, computer crimes, and smuggling - ANSWER-Why does money
laundering occur?
terrorism is intended to intimidate a population or to compel a government or an
international organization to do or abstain from doing any specific act through the threat
of violence - ANSWER-Define terrorism financing
1st is placement, 2nd is layering, and 3rd is integration - ANSWER-What are the 3
stages of money laundering?
money launders must place funds into financial institutions or the retail space -
ANSWER-Define placement
Correct Answers
Bank Secrecy Act; the primary U.S. anti-money laundering law (AML) that attempts to
detect, deter, and disrupt money laundering. - ANSWER-What is BSA?
To establish a data trail to detect and prevent money laundering and other illegal
activities, such as drug transactions, tax evasion, usage of secret foreign bank accounts
and white-collar crimes. - ANSWER-Why was BSA designed?
* customer ID program (CIP)
* currency transaction reports (CTR)
* recordkeeping requirements
* suspicious activity reporting (SAR) - ANSWER-What are the major requirements of the
BSA?
1970 - ANSWER-What year was the BSA passed?
anti-money laundering - ANSWER-AML stands for what?
2001; specifically focuses on putting an end to terrorist activities - ANSWER-Define the
USA Patriot Act
a process whereby criminals engage in a series of transactions to exchange their "dirty"
funds for "clean" money - ANSWER-Define money laundering
drug trafficking, financial fraud, tax evasion, illegal arms sales, foreign official corruption,
terrorist financing, computer crimes, and smuggling - ANSWER-Why does money
laundering occur?
terrorism is intended to intimidate a population or to compel a government or an
international organization to do or abstain from doing any specific act through the threat
of violence - ANSWER-Define terrorism financing
1st is placement, 2nd is layering, and 3rd is integration - ANSWER-What are the 3
stages of money laundering?
money launders must place funds into financial institutions or the retail space -
ANSWER-Define placement
