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Flashcards in Test 2 Deck (22):
1

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

2

1st step in risk assessment process is to identify specific risk categories

product and services, customers and entities and geographic locations

3

Non resident aliens are

customer which require special attention

4

High Risk Geographical areas include

Countries subject to OFAC sanctions, support terrorism, Offshore financial centers

5

HIDTA designates what type of area

High Intensity Drug Trafficking Areas, DRUG trafficking

6

Appropriate Customer Risk Assessment considerations

purpose of account, nature of customer's business, actual or anticipated activity

7

CIP stands for...

Customer Identification Program

8

An account under CIP rules includes

safety deposit box, depository or savings account, credit accounts

9

In addition to basic account opening requirements, other methods of identification can include

Non-documentary evidence methods

10

CIP requires banks to do all

determine if the customer appears on any government list, adequate customer notice, obtain documentary evidence of identity

11

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

12

Account opening procedures under CIP include

Name, date of birth, address, identification number

13

CIP allows banks to use third parties such as car dealers or mortgage brokers to identify it's customers

true

14

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

15

Bank Secrecy Act defines EDD as...

Enhanced Due Diligence

16

The accounts of customers selected for EDD should be monitored by

more frequently and more closely than other account holders

17

When a person makes a suspicious deposit in the amount of ____ a SAR must be filed

$5,000 deposit or withdraw

18

A SAR should be filed when...

a customers transaction appears to intentionally evade BSA regulations

19

A National Security Letter is

a formal demand for information sent by the FBI

20

Bank Secrecy Act requires records of fund transfers in the amount of ___ dollars or more to be made and retained

$3000

21

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

30

22

Banks must retain copies of SARs for ...

5 years