Certified Bank Secrecy Act Officer (CBSAO)
Practice Exam Questions And Correct Answers
(Verified Answers) Plus Rationales 2026-2027
Q&A | Instant Download Pdf
1. What is the primary purpose of the Bank Secrecy Act (BSA)?
a) To regulate interest rates on bank loans
b) To prevent and detect money laundering and terrorist financing
c) To govern deposit insurance policies
d) To set accounting standards for banks
b) To prevent and detect money laundering and terrorist
financing
The BSA was enacted to require financial institutions to assist
government agencies in detecting and preventing money
laundering and terrorist financing activities.
2. Which of the following is a key component of a BSA compliance
program?
a) Customer Relationship Management
b) Transaction monitoring and suspicious activity reporting
c) Marketing strategy development
d) Loan approval process
b) Transaction monitoring and suspicious activity reporting
A BSA compliance program requires monitoring transactions and
reporting suspicious activity to the Financial Crimes Enforcement
Network (FinCEN).
,3. Which agency enforces the Bank Secrecy Act?
a) SEC
b) OCC
c) FinCEN
d) FDIC
c) FinCEN
The Financial Crimes Enforcement Network (FinCEN) is the bureau
responsible for enforcing the BSA.
4. What is a Currency Transaction Report (CTR)?
a) A report of foreign wire transfers over $3,000
b) A report of cash transactions over $10,000
c) A report of suspicious check deposits
d) A report of loan approvals exceeding $50,000
b) A report of cash transactions over $10,000
Financial institutions must file CTRs for cash transactions
exceeding $10,000 to comply with the BSA.
5. Which type of account activity would typically trigger a Suspicious
Activity Report (SAR)?
a) A routine payroll deposit
b) Frequent large cash deposits structured under $10,000
c) A standard mortgage payment
d) An automated debit for utilities
b) Frequent large cash deposits structured under $10,000
Structuring transactions to avoid CTR filing is considered
suspicious activity and must be reported via a SAR.
6. How often must BSA compliance training be provided to bank
employees?
, a) Once a decade
b) Only at hire
c) Annually or more frequently
d) Every five years
c) Annually or more frequently
Regulators require ongoing training to ensure staff remain aware
of BSA requirements and changes.
7. What does “Know Your Customer” (KYC) involve?
a) Approving loans without verification
b) Verifying a customer’s identity and understanding their
financial behavior
c) Marketing to new clients
d) Performing risk assessments on competitors
b) Verifying a customer’s identity and understanding their
financial behavior
KYC is a key element of BSA compliance, helping institutions
understand who their customers are and detect unusual activity.
8. Which of the following is considered a high-risk customer under
BSA guidelines?
a) A local student with a checking account
b) A foreign politically exposed person (PEP)
c) A local retired teacher
d) A municipal utility employee
b) A foreign politically exposed person (PEP)
PEPs are high-risk due to potential involvement in corruption or
illicit activity, requiring enhanced due diligence.
, 9. What is “structuring” in the context of the BSA?
a) Organizing bank branches for efficiency
b) Breaking transactions into smaller amounts to avoid reporting
thresholds
c) Designing loan products
d) Setting up corporate hierarchies
b) Breaking transactions into smaller amounts to avoid reporting
thresholds
Structuring is illegal because it attempts to evade CTR reporting
requirements.
10. Which of the following would require filing a SAR?
a) Customer deposits a $500 check
b) A customer’s account shows sudden, unexplained large
transfers inconsistent with their profile
c) Routine monthly utility payment
d) Standard payroll deposit
b) A customer’s account shows sudden, unexplained large
transfers inconsistent with their profile
SARs are filed when a financial institution detects activity that is
inconsistent with a customer’s known profile or appears
suspicious.
11. Which BSA requirement applies specifically to foreign
correspondent accounts?
a) Only local transactions are monitored
b) Recordkeeping and due diligence on the foreign financial
institution
c) Interest rates are capped
d) Loans must be approved by FinCEN
Practice Exam Questions And Correct Answers
(Verified Answers) Plus Rationales 2026-2027
Q&A | Instant Download Pdf
1. What is the primary purpose of the Bank Secrecy Act (BSA)?
a) To regulate interest rates on bank loans
b) To prevent and detect money laundering and terrorist financing
c) To govern deposit insurance policies
d) To set accounting standards for banks
b) To prevent and detect money laundering and terrorist
financing
The BSA was enacted to require financial institutions to assist
government agencies in detecting and preventing money
laundering and terrorist financing activities.
2. Which of the following is a key component of a BSA compliance
program?
a) Customer Relationship Management
b) Transaction monitoring and suspicious activity reporting
c) Marketing strategy development
d) Loan approval process
b) Transaction monitoring and suspicious activity reporting
A BSA compliance program requires monitoring transactions and
reporting suspicious activity to the Financial Crimes Enforcement
Network (FinCEN).
,3. Which agency enforces the Bank Secrecy Act?
a) SEC
b) OCC
c) FinCEN
d) FDIC
c) FinCEN
The Financial Crimes Enforcement Network (FinCEN) is the bureau
responsible for enforcing the BSA.
4. What is a Currency Transaction Report (CTR)?
a) A report of foreign wire transfers over $3,000
b) A report of cash transactions over $10,000
c) A report of suspicious check deposits
d) A report of loan approvals exceeding $50,000
b) A report of cash transactions over $10,000
Financial institutions must file CTRs for cash transactions
exceeding $10,000 to comply with the BSA.
5. Which type of account activity would typically trigger a Suspicious
Activity Report (SAR)?
a) A routine payroll deposit
b) Frequent large cash deposits structured under $10,000
c) A standard mortgage payment
d) An automated debit for utilities
b) Frequent large cash deposits structured under $10,000
Structuring transactions to avoid CTR filing is considered
suspicious activity and must be reported via a SAR.
6. How often must BSA compliance training be provided to bank
employees?
, a) Once a decade
b) Only at hire
c) Annually or more frequently
d) Every five years
c) Annually or more frequently
Regulators require ongoing training to ensure staff remain aware
of BSA requirements and changes.
7. What does “Know Your Customer” (KYC) involve?
a) Approving loans without verification
b) Verifying a customer’s identity and understanding their
financial behavior
c) Marketing to new clients
d) Performing risk assessments on competitors
b) Verifying a customer’s identity and understanding their
financial behavior
KYC is a key element of BSA compliance, helping institutions
understand who their customers are and detect unusual activity.
8. Which of the following is considered a high-risk customer under
BSA guidelines?
a) A local student with a checking account
b) A foreign politically exposed person (PEP)
c) A local retired teacher
d) A municipal utility employee
b) A foreign politically exposed person (PEP)
PEPs are high-risk due to potential involvement in corruption or
illicit activity, requiring enhanced due diligence.
, 9. What is “structuring” in the context of the BSA?
a) Organizing bank branches for efficiency
b) Breaking transactions into smaller amounts to avoid reporting
thresholds
c) Designing loan products
d) Setting up corporate hierarchies
b) Breaking transactions into smaller amounts to avoid reporting
thresholds
Structuring is illegal because it attempts to evade CTR reporting
requirements.
10. Which of the following would require filing a SAR?
a) Customer deposits a $500 check
b) A customer’s account shows sudden, unexplained large
transfers inconsistent with their profile
c) Routine monthly utility payment
d) Standard payroll deposit
b) A customer’s account shows sudden, unexplained large
transfers inconsistent with their profile
SARs are filed when a financial institution detects activity that is
inconsistent with a customer’s known profile or appears
suspicious.
11. Which BSA requirement applies specifically to foreign
correspondent accounts?
a) Only local transactions are monitored
b) Recordkeeping and due diligence on the foreign financial
institution
c) Interest rates are capped
d) Loans must be approved by FinCEN
