BSA 1 - BSA-AML OVERVIEW
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
1. Which statement best describes the intent of the Bank Secrecy Act
(BSA)?
A. To make money laundering more difficult and to prevent banks from
becoming unknowing intermediaries in illicit activity
B. To mandate that all persons must be treated fairly when applying for
credit
C. To coordinate housing data for purposes of identifying possible
discriminatory housing practices
,D. To require that banks make check deposits available within a
specified period of time
ID:7753F4F0CEA0466BBC713DA354C5689F - ✔✔a.
B is incorrect because this describes the purpose of the Equal Credit
Opportunity Act. C is incorrect because this describes the primary
purpose of Home Mortgage Disclosure Act. D is incorrect because it
describes the primary purpose of the Expedited Funds Availability Act
and Reg CC.
2. At an orientation meeting for new hires, a compliance officer
explained the required elements of the financial institution's Bank
Secrecy Act (BSA) compliance program. Assuming the institution is
compliant, which option lists two activities that should be included in
the compliance officer's explanation?
A. Verification of identification procedures and internal controls
B. Civil investigation procedures and training programs
, C. Appointing individual(s) designated as responsible for monitoring
BSA compliance and independent testing
D. Training programs and verification of identification procedures
ID:7CAFCF07A87E4A9B88DBB5A12EDD3A2B - ✔✔c.
A is incorrect because verification of identification is part of the
transaction process not the required compliance program and financial
institutions do not conduct civil investigations. When there are
significant BSA deficiencies, violations are referred to FinCEN. B is
incorrect because financial institutions do not conduct civil
investigations. When there are significant BSA deficiencies, violations
are referred to FinCEN. D is incorrect because verification of
identification is part of the transaction process not the required
compliance program.
3. What is the primary difference between the money laundering efforts
of terrorist organizations and organized crime?
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
1. Which statement best describes the intent of the Bank Secrecy Act
(BSA)?
A. To make money laundering more difficult and to prevent banks from
becoming unknowing intermediaries in illicit activity
B. To mandate that all persons must be treated fairly when applying for
credit
C. To coordinate housing data for purposes of identifying possible
discriminatory housing practices
,D. To require that banks make check deposits available within a
specified period of time
ID:7753F4F0CEA0466BBC713DA354C5689F - ✔✔a.
B is incorrect because this describes the purpose of the Equal Credit
Opportunity Act. C is incorrect because this describes the primary
purpose of Home Mortgage Disclosure Act. D is incorrect because it
describes the primary purpose of the Expedited Funds Availability Act
and Reg CC.
2. At an orientation meeting for new hires, a compliance officer
explained the required elements of the financial institution's Bank
Secrecy Act (BSA) compliance program. Assuming the institution is
compliant, which option lists two activities that should be included in
the compliance officer's explanation?
A. Verification of identification procedures and internal controls
B. Civil investigation procedures and training programs
, C. Appointing individual(s) designated as responsible for monitoring
BSA compliance and independent testing
D. Training programs and verification of identification procedures
ID:7CAFCF07A87E4A9B88DBB5A12EDD3A2B - ✔✔c.
A is incorrect because verification of identification is part of the
transaction process not the required compliance program and financial
institutions do not conduct civil investigations. When there are
significant BSA deficiencies, violations are referred to FinCEN. B is
incorrect because financial institutions do not conduct civil
investigations. When there are significant BSA deficiencies, violations
are referred to FinCEN. D is incorrect because verification of
identification is part of the transaction process not the required
compliance program.
3. What is the primary difference between the money laundering efforts
of terrorist organizations and organized crime?
