BSA 1 - BSA-AML Overview | with complete solution | 2023/24

BSA 1 - BSA-AML Overview | with complete solution | 2023/24 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. - 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 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. - 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 a. B and C are incorrect because terrorist financing focuses on using dirty money as well as funding from legitimate sources. D is incorrect because terrorists use many sources to launder money including charities, money exchangers, and other traditional criminal money laundering methods. - 3. What is the primary difference between the money laundering efforts of terrorist organizations and organized crime? A. Terrorist financing is often motivated by ideological and political goals rather than profit B. Terrorist financing focuses on the profit gained from money laundering efforts C. Terrorist financing only uses legitimate sources making it very difficult to detect D. Terrorist financing is easier to detect because it uses only commercial banks rather than other financial organizations ID:28F92FD9CCFB84F8D90219CD a. B is incorrect because it is the description of the placement stage. C is incorrect because it is the description of the layering stage. D is incorrect because it is the description of one method terrorists use to fund their objectives. - 4. Placement, layering, and integration are the three stages of the money laundering process. Which option describes the integration stage? A. Illegal funds are incorporated into the legitimate financial system using additional transactions to create the appearance of legality through the purchase of assets B. Money is placed into the financial system in order to hide the true source of the funds from law enforcement authorities C. Proceeds of criminal activity are separated from their origin through the use of multiple levels of complex financial transactions D. Clean proceeds of legal activity are contributed or transferred to actors for use in terrorist objectives ID:D1ADFF418A1745199A634AA2B78B1B91 c. A is incorrect because funds for terrorist financing sometimes come from legitimate sources. B is incorrect because terrorist financing does not often require large sums of money. D is incorrect because it describes traditional criminal money laundering and not terrorist financing. - 5. A challenge for bankers is that terrorist financing is not easily detectible. Which statement is true regarding terrorist financing? A. Funds are always derived from illegitimate sources B. It always involves large sums of money C. It is linear process and deposited funds often flow from one person depositing funds to those who use the funds D. It is a circular process with benefits received directly from the funds deposited ID:A359F2B56D9F49AA9F1A572BA7CBAD34 b. A is incorrect because money laundering is not restricted to financial institutions. C is incorrect because money laundering is not under control. D is incorrect because money laundering has a significant impact on the financial industry and society as a whole. - 6. Employees of financial institutions are required to learn how to help combat money laundering. Which statement accurately describes the impact of money laundering on society? A. Money laundering is restricted to financial institutions and therefore weakens the banking