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Quizzes > Business & Finance > Finance & Economics

Ready to Master the Bank Secrecy Act? Take the Quiz!

Think You Can Ace BSA Compliance? Start the Quiz!

Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
paper art BSA AML SARs quiz illustration with documents, checkmarks, magnifying glass, chart on dark blue background

Welcome to our Bank Secrecy Act Quiz, designed for compliance professionals eager to sharpen their AML and due diligence expertise. In this BSA compliance quiz, you'll tackle real-world bank secrecy act questions covering transaction monitoring, SAR filings, and risk assessment. Whether you're a seasoned auditor or new to financial crime prevention, this anti-money laundering quiz will challenge your knowledge and highlight areas for growth in every financial compliance quiz scenario. Ready to prove your skills? Get started now and see how you measure up. For extra practice, take the challenge or dive into advanced AML scenarios today!

What is the primary purpose of the Bank Secrecy Act (BSA)?
To set standards for consumer lending rates
To require financial institutions to assist government agencies in preventing money laundering
To regulate stock trading practices
To insure deposits against bank failures
The Bank Secrecy Act requires financial institutions to implement recordkeeping and reporting measures that help detect and prevent money laundering and terrorist financing. It is overseen by FinCEN and enforced through record retention and suspicious activity reporting requirements. BSA does not set consumer lending rates or regulate stock trading. These rules form the backbone of U.S. anti-money laundering efforts. source
Which of the following defines the currency transaction report (CTR) threshold under the BSA?
Any cash transaction over $3,000
Any cash transaction over $10,000
Any cash transaction over $25,000
Any cash transaction over $50,000
Banks must file a CTR for each transaction in currency over $10,000 by or on behalf of the same person in a single business day. This requirement helps track significant cash movements and detect potential money laundering. Transactions under $10,000 may be aggregated if they appear structured to avoid reporting. source
What does SAR stand for in BSA compliance?
Suspicious Activity Report
Standard Account Register
Summary Audit Review
Security Alert Response
A Suspicious Activity Report must be filed when a financial institution detects transactions that may indicate money laundering or other illicit activities. SARs help law enforcement investigate and prevent financial crimes. The abbreviation is standardized across U.S. financial regulations. source
Under the BSA, what initial requirement does a Customer Identification Program (CIP) impose on financial institutions?
To provide credit scoring services
To verify the identity of customers opening new accounts
To audit internal AML policies annually
To insure customer deposits
CIP rules require financial institutions to collect and verify identifying information—such as name, address, date of birth, and identification number—from customers when they open accounts. This helps to prevent account misuse and concealment of illicit funds. Verification can include government ID checks or comparing against databases. source
Within how many days must a financial institution file a Currency Transaction Report (CTR) after a reportable transaction?
15 calendar days
15 business days
30 calendar days
10 business days
Financial institutions must file the CTR within 15 business days after the transaction date. Timely filing ensures authorities can monitor large cash transactions effectively. The business-day requirement excludes weekends and federal holidays. source
What is the required timeframe for filing a Suspicious Activity Report once enough facts are known?
30 calendar days
60 calendar days
10 business days
45 business days
Institutions must file a SAR within 30 calendar days of detecting facts that constitute a basis for filing. If no suspect is identified, the period may be extended to 60 days. This deadline promotes prompt law enforcement access to critical intelligence. source
Which customer category typically requires Enhanced Due Diligence (EDD) under BSA/AML guidelines?
Minor account holders under 18
Politically Exposed Persons (PEPs)
Customers with balances under $500
Long-term loyal customers
Politically Exposed Persons carry a higher risk of corruption, so financial institutions must perform Enhanced Due Diligence on them. EDD involves deeper background checks, ongoing monitoring, and senior management approval. It exceeds standard Customer Due Diligence procedures. source
Which of the following is NOT a required element of a CIP under the USA PATRIOT Act?
Customer name
Date of birth
Place of birth
Taxpayer identification number
CIP requires name, date of birth, address, and an identification number such as SSN or passport number. Place of birth is not mandated by the regulations. Required elements ensure institutions can verify identities to deter illicit finance. source
How long must financial institutions retain BSA records, such as CTRs and SARs?
3 years
5 years
7 years
10 years
BSA regulations require institutions to retain CTRs, SARs, and supporting documentation for five years from the filing date. This retention period ensures records are available for regulatory examinations and law enforcement investigations. Failure to retain records can result in enforcement actions. source
What does FinCEN stand for?
Financial Crimes Enforcement Network
Financial Credit Examination Network
Federal Compliance and Enforcement Navy
Financial Consumer Engagement Network
FinCEN is the Financial Crimes Enforcement Network, a bureau of the U.S. Treasury Department that administers and enforces the BSA. It issues regulations, collects reports, and provides financial intelligence to law enforcement. FinCEN plays a central role in U.S. anti-money laundering efforts. source
In money laundering terminology, what phase is described as separating illicit proceeds from their source through layers of transactions?
Placement
Layering
Integration
Aggregation
Layering is the second phase of money laundering where illicit funds are moved through complex transactions to obscure origins. Placement is the initial deposit, and integration is when laundered funds reenter the legitimate economy. Understanding these phases helps institutions detect suspicious patterns. source
Which part of the Code of Federal Regulations contains the rules implementing the BSA?
12 CFR
31 CFR
17 CFR
45 CFR
Title 31 of the Code of Federal Regulations contains the implementing regulations for the Bank Secrecy Act. It covers reporting and recordkeeping requirements for financial institutions. Other titles govern banking, securities, and social welfare. source
A customer makes three cash deposits of $4,500 each on consecutive days. What should the institution do under BSA regulations?
File a single CTR for $13,500
File a SAR for structuring
Ignore since each deposit is under $10,000
Report only if deposits exceed $20,000 total
Multiple transactions structured to avoid the $10,000 CTR threshold must be reported as suspicious. The institution should file a Suspicious Activity Report for structuring because the customer deliberately broke a large deposit into smaller amounts. Structuring to evade CTR requirements is a red flag under BSA. source
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Study Outcomes

  1. Analyze Suspicious Activity Report Requirements -

    Learn to assess real-world scenarios and determine when to file SARs under the Bank Secrecy Act Quiz framework, ensuring you recognize key reporting triggers and deadlines.

  2. Apply Customer Due Diligence Principles -

    Gain hands-on practice with CDD and enhanced due diligence concepts by answering bank secrecy act questions focused on customer risk profiling and verification steps.

  3. Evaluate Transaction Monitoring Scenarios -

    Sharpen your ability to spot red-flag transactions in our anti-money laundering quiz, understanding how to interpret patterns and anomalies that may indicate illicit activity.

  4. Identify Red Flags and Suspicious Activity -

    Develop your skills in recognizing common signs of money laundering and fraud, using targeted financial compliance quiz questions to build your detection toolkit.

  5. Recall Key BSA Definitions and Thresholds -

    Solidify your knowledge of critical terms, monetary thresholds, and regulatory thresholds through focused bank secrecy act questions that test your retention and understanding.

  6. Navigate Filing Procedures and Timelines -

    Master the step-by-step process for submitting reports and meeting compliance deadlines, reinforced by practical examples in our BSA compliance quiz.

Cheat Sheet

  1. Customer Identification Program (CIP) Requirements -

    Under 31 CFR 1020.220, the CIP mandates that you collect and verify key identifying information such as name, date of birth, and address before account opening. A handy mnemonic, "Photo + Paper = Verified," reminds you to match a photo ID with one supporting document. Mastering CIP is core to acing any Bank Secrecy Act quiz and preventing anonymous accounts, as FinCEN outlines.

  2. Suspicious Activity Reporting (SAR) Process -

    Financial institutions must file SARs within 30 calendar days of detecting suspicious activity exceeding $5,000, per 31 CFR 1020.320. Remember the "5K in 30 rule" to file on time for transactions over $5,000. The FFIEC BSA/AML Examination Manual provides detailed scenarios to help identify reportable events.

  3. Currency Transaction Report (CTR) Criteria -

    Any cash transactions over $10,000 in a single day require a CTR (31 CFR 1010.310), ensuring transparency in large cash flows. This threshold is a staple question in BSA compliance quizzes, so remember "10 grand, must report." Updated guidance from FinCEN emphasizes combining transactions by the same customer to assess the total threshold.

  4. Enhanced Due Diligence (EDD) for High-Risk Clients -

    For clients posing elevated AML risks, such as PEPs (Politically Exposed Persons), EDD ensures deeper scrutiny through ongoing monitoring and source-of-funds verification. A quick trick is "PEPS for PEPs," reminding you to apply Political Exposure Policies. Industry research in the Journal of Money Laundering Control underscores EDD's role in mitigating complex money laundering schemes.

  5. Recordkeeping & Retention Standards -

    BSA mandates retaining CIP records for five years after account closure and SARs/CTRs for five years from filing, per 31 CFR 1020.380. Use the memory phrase "Five for Files" to recall the standard retention period. The FFIEC handbook highlights that accurate archiving supports audits and regulatory examinations.

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