Certified Bank Secrecy Act Officer
(CBSAO) Practice Exam Questions And
Correct Answers (Verified Answers) Plus
Rationales 2025|2026 Q&A | Instant
Download Pdf
1. The primary purpose of the Bank Secrecy Act (BSA) is to:
A. Regulate interest rates charged by banks
B. Prevent insider trading in financial markets
C. Prevent and detect money laundering and financial crimes
D. Oversee the FDIC insurance process
Rationale: The BSA was enacted to help financial institutions detect and
prevent money laundering and other illicit financial activities.
2. Which agency has the primary responsibility for enforcing the Bank
Secrecy Act?
,A. OCC
B. FinCEN
C. FDIC
D. Federal Reserve
Rationale: FinCEN (Financial Crimes Enforcement Network) is the U.S.
Department of the Treasury bureau responsible for administering and
enforcing the BSA.
3. A Currency Transaction Report (CTR) must be filed when a customer
conducts transactions totaling more than:
A. $5,000 in a single day
B. $10,000 in a single day
C. $15,000 in a week
D. $25,000 in a month
Rationale: The BSA requires CTRs for cash transactions exceeding $10,000
in one business day.
4. What is the retention period for BSA records such as CTRs and SARs?
A. 2 years
B. 5 years
C. 7 years
D. 10 years
,Rationale: Financial institutions must keep BSA-related records, including
CTRs and SARs, for at least five years.
5. Suspicious Activity Reports (SARs) are required for suspicious transactions
involving at least:
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Rationale: Financial institutions must file a SAR when they detect
suspicious transactions involving at least $5,000 or more.
6. Which of the following is not considered a pillar of an effective BSA/AML
compliance program?
A. Designation of a BSA compliance officer
B. Independent testing
C. Marketing strategies
D. Ongoing employee training
Rationale: The five pillars are internal controls, compliance officer,
training, independent testing, and customer due diligence—marketing is
not part of them.
, 7. The Customer Identification Program (CIP) requires banks to collect which
of the following?
A. Customer’s occupation
B. Employer name
C. Name, date of birth, address, and identification number
D. Tax filing history
Rationale: CIP mandates these four key elements to verify a customer’s
identity.
8. Who is responsible for approving the BSA/AML compliance program?
A. Compliance officer
B. Risk manager
C. Board of directors
D. Internal auditor
Rationale: The board of directors must formally approve the BSA/AML
compliance program to ensure oversight and accountability.
9. Which law expanded the scope of the BSA following the September 11
attacks?
A. Fair Credit Reporting Act
B. Dodd-Frank Act
C. USA PATRIOT Act
D. Gramm-Leach-Bliley Act
(CBSAO) Practice Exam Questions And
Correct Answers (Verified Answers) Plus
Rationales 2025|2026 Q&A | Instant
Download Pdf
1. The primary purpose of the Bank Secrecy Act (BSA) is to:
A. Regulate interest rates charged by banks
B. Prevent insider trading in financial markets
C. Prevent and detect money laundering and financial crimes
D. Oversee the FDIC insurance process
Rationale: The BSA was enacted to help financial institutions detect and
prevent money laundering and other illicit financial activities.
2. Which agency has the primary responsibility for enforcing the Bank
Secrecy Act?
,A. OCC
B. FinCEN
C. FDIC
D. Federal Reserve
Rationale: FinCEN (Financial Crimes Enforcement Network) is the U.S.
Department of the Treasury bureau responsible for administering and
enforcing the BSA.
3. A Currency Transaction Report (CTR) must be filed when a customer
conducts transactions totaling more than:
A. $5,000 in a single day
B. $10,000 in a single day
C. $15,000 in a week
D. $25,000 in a month
Rationale: The BSA requires CTRs for cash transactions exceeding $10,000
in one business day.
4. What is the retention period for BSA records such as CTRs and SARs?
A. 2 years
B. 5 years
C. 7 years
D. 10 years
,Rationale: Financial institutions must keep BSA-related records, including
CTRs and SARs, for at least five years.
5. Suspicious Activity Reports (SARs) are required for suspicious transactions
involving at least:
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Rationale: Financial institutions must file a SAR when they detect
suspicious transactions involving at least $5,000 or more.
6. Which of the following is not considered a pillar of an effective BSA/AML
compliance program?
A. Designation of a BSA compliance officer
B. Independent testing
C. Marketing strategies
D. Ongoing employee training
Rationale: The five pillars are internal controls, compliance officer,
training, independent testing, and customer due diligence—marketing is
not part of them.
, 7. The Customer Identification Program (CIP) requires banks to collect which
of the following?
A. Customer’s occupation
B. Employer name
C. Name, date of birth, address, and identification number
D. Tax filing history
Rationale: CIP mandates these four key elements to verify a customer’s
identity.
8. Who is responsible for approving the BSA/AML compliance program?
A. Compliance officer
B. Risk manager
C. Board of directors
D. Internal auditor
Rationale: The board of directors must formally approve the BSA/AML
compliance program to ensure oversight and accountability.
9. Which law expanded the scope of the BSA following the September 11
attacks?
A. Fair Credit Reporting Act
B. Dodd-Frank Act
C. USA PATRIOT Act
D. Gramm-Leach-Bliley Act
