Flashcards in Test 2 Deck (22):
Risk Assessment involves ____ step process
2 step process, identify the specific risk category unique to the bank and conduct a more detailed analysis of the data identified to better assess the risk
1st step in risk assessment process is to identify specific risk categories
product and services, customers and entities and geographic locations
Non resident aliens are
customer which require special attention
High Risk Geographical areas include
Countries subject to OFAC sanctions, support terrorism, Offshore financial centers
HIDTA designates what type of area
High Intensity Drug Trafficking Areas, DRUG trafficking
Appropriate Customer Risk Assessment considerations
purpose of account, nature of customer's business, actual or anticipated activity
CIP stands for...
Customer Identification Program
An account under CIP rules includes
safety deposit box, depository or savings account, credit accounts
In addition to basic account opening requirements, other methods of identification can include
Non-documentary evidence methods
CIP requires banks to do all
determine if the customer appears on any government list, adequate customer notice, obtain documentary evidence of identity
During the account opening process, if a bank doesn't reasonable believe it knows the identity of the customer, CIP requires the bank to do...
do not open the account
Account opening procedures under CIP include
Name, date of birth, address, identification number
CIP allows banks to use third parties such as car dealers or mortgage brokers to identify it's customers
Customer due diligence requirements are critical to banking because...
help in detecting suspicious activity, help banks adhere to sound business practices, avoid criminal exposure from illegal activity
Bank Secrecy Act defines EDD as...
Enhanced Due Diligence
The accounts of customers selected for EDD should be monitored by
more frequently and more closely than other account holders
When a person makes a suspicious deposit in the amount of ____ a SAR must be filed
$5,000 deposit or withdraw
A SAR should be filed when...
a customers transaction appears to intentionally evade BSA regulations
A National Security Letter is
a formal demand for information sent by the FBI
Bank Secrecy Act requires records of fund transfers in the amount of ___ dollars or more to be made and retained
When a SAR violation is identified and the suspect is known, BSA rules require a SAR to be filed no more than ___ calendar days of discovery