What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

Rate this question:

2
 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

Rate this question:

3
 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

Rate this question:

2
 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

Rate this question:

3
 0
 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.
What is one of the major risks of Money laundering?

A.

Loss of income

B.

Negative impact to our communities and our country

C.

Employee turnover

D.

Customer Dissatisfaction

Correct Answer
B. Negative impact to our communities and our country
Explanation
Money laundering poses a major risk of negatively impacting our communities and country.
This illegal practice involves disguising the origins of illicit funds and integrating them into
the legitimate financial system. By doing so, money launderers can facilitate various criminal
activities, such as drug trafficking, corruption, and terrorism. The consequences of money
laundering include increased crime rates, erosion of trust in financial institutions, and
economic instability. Additionally, the funds generated through money laundering can be
used to finance illegal activities that harm communities and undermine the security and
development of a country.
  2.

What currency transaction dollar amount triggers the filing of a CTR?

A.

$ 8,000 or more
 

B.

$ 1,000 or more

C.

More than $ 3,000

D.

More than $ 10,000

Correct Answer
D. More than $ 10,000
Explanation
A Currency Transaction Report (CTR) is a form that financial institutions must file with the
Financial Crimes Enforcement Network (FinCEN) for any transaction involving more than
$10,000 in cash. This requirement is part of the Bank Secrecy Act (BSA) and is aimed at
detecting and preventing money laundering and other illegal activities. By reporting large
cash transactions, the government can track and investigate suspicious financial activities and
ensure compliance with anti-money laundering regulations. Therefore, any transaction
exceeding $10,000 in dollar amount triggers the filing of a CTR.
  3.

Which of the following is a possible red flag of suspicious activity?

A.

Customer who is reluctant to provide ID

B.

Cash Transaction

C.

Customer who request a money transfer to a foreign country

 

D.

Purchasing a money order

Correct Answer
A. Customer who is reluctant to provide ID
Explanation
A customer who is reluctant to provide ID can be a red flag of suspicious activity because it
suggests that the customer may be trying to hide their identity or engage in illegal activities.
The reluctance to provide identification raises concerns about the legitimacy of their
intentions and may indicate that they are involved in fraudulent or illicit transactions. This
behavior is often associated with money laundering, identity theft, or other criminal activities,
making it an important red flag to be cautious of.
  4.

Which type of transaction must be reported on a SAR form?

A.

Transaction that suspicious and over $ 3,000

B.

Transaction that is over $ 2,000 in cash

C.

Transaction that is $ 2,000 or more and suspicious

D.

Transaction that is suspicious and at least over $ 10,000

Correct Answer
C. Transaction that is $ 2,000 or more and suspicious
Explanation
A SAR form is a Suspicious Activity Report form that is used to report transactions that are
suspicious and meet certain criteria. The correct answer states that any transaction that is
$2,000 or more and suspicious must be reported on a SAR form. This means that any
transaction meeting these criteria, regardless of the specific amount, must be reported. The
answer does not specify a maximum amount, indicating that any transaction meeting the
dollar amount threshold and being deemed suspicious should be reported.
  5.

What is the deadline for submitting a SAR on a suspicious transaction?

A.

15 days from date of transaction

B.

By the end of the current calendar quarter

C.

By the end of the current calendar month

D.

30 days from the date that suspicious transaction was detected

Correct Answer
D. 30 days from the date that suspicious transaction was detected
Explanation
The correct answer is 30 days from the date that suspicious transaction was detected. This is
the deadline for submitting a Suspicious Activity Report (SAR) on a suspicious transaction. It
allows sufficient time for financial institutions to investigate and gather necessary
information before reporting to the appropriate authorities.
  6.

Which of the fallowing action is required for a Money Transfer of $ 1,000 or

more?

A.

Customer’s signature on the Money order log

 

B.

Request for the customer’s occupation

C.

Customer’s Identification verified, name and address

D.

Telephone interview with Western Union compliance

Correct Answer
C. Customer’s Identification verified, name and address
Explanation
For a Money Transfer of $1,000 or more, it is required to verify the customer's identification,
name, and address. This is necessary to ensure the security and legality of the transaction, as
well as to comply with the regulations and policies of Western Union. By verifying the
customer's identification, name, and address, the company can confirm the identity of the
sender and recipient, reducing the risk of fraudulent activity and ensuring that the money is
being transferred to the intended recipient.
  7.

Which of the following money order purchases must be recorded on the

money order log?

A.

Money order sales over $ 3,000

B.

All money orders

C.

All money orders purchase with cash

 

D.

Money orders totaling $ 2,000 or more

Correct Answer
A. Money order sales over $ 3,000
Explanation
Money order sales over $3,000 must be recorded on the money order log because it is
important to keep a record of high-value transactions for financial and security purposes. This
helps in tracking and monitoring the flow of money and prevents any fraudulent activities.
Recording these transactions also ensures transparency and accountability in the financial
system.
  8.

What form would the agent most likely file if a customer makes multiple cash
transfers of $ 9,000 each per day over a period of several days?

A.

CTR

B.

SAR

C.

CMIR

D.

Police report

Correct Answer
B. SAR
Explanation
If a customer makes multiple cash transfers of $9,000 each per day over a period of several
days, the agent would most likely file a Suspicious Activity Report (SAR). SARs are filed by
financial institutions to report suspicious transactions that may indicate potential money
laundering or other illegal activities. In this case, the repeated cash transfers of the same
amount could be seen as an attempt to avoid triggering reporting requirements, which would
raise suspicions and warrant the filing of a SAR.
  9.

You should only report suspicious transaction conducted by customers you do

not know. You do not need to report suspicious transaction of a regular
customer you know.

A.

True

B.

False

Correct Answer
B. False
Explanation
This statement is false because it is important to report any suspicious transactions, regardless
of whether the customer is known or not. Reporting suspicious transactions helps to prevent
illegal activities such as money laundering or fraud. Even if a customer is considered a
regular and trusted customer, it is still necessary to report any transactions that appear
suspicious or out of the ordinary. Failing to report such transactions could potentially enable
criminal activities to go unnoticed and unchecked.
  10.

During the period of one business day a customer pays with cash for separate
wire transfers in the fallowing amounts: $ 1,500, $ 2,000, $ 3,000 and $ 4,000.
You are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
The customer paying with cash for separate wire transfers in amounts of $1,500, $2,000,
$3,000, and $4,000 within one business day exceeds the threshold amount set for Currency
Transaction Reports (CTRs). A CTR is required to be filed for any cash transaction
exceeding $10,000 in a single business day. Therefore, the statement "True" is correct.
11.

All Financial institutions, including check cashers, must file Currency

Transaction Reports (“CTRs”) for all transactions involving currency of more
than $ 10,000

A.

True

B.

False

Correct Answer
A. True
Explanation
Financial institutions, such as check cashers, are required to file Currency Transaction
Reports (CTRs) for any transactions involving currency that exceed $10,000. This regulation
helps to prevent money laundering and other illegal activities by monitoring large cash
transactions. By reporting these transactions, financial institutions contribute to the overall
integrity of the financial system and assist law enforcement agencies in their efforts to
combat financial crimes. Therefore, the statement is true.
  12.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must inform the customer in writing within 30 days that
the SAR has been filed.

A.

True

B.
 False

Correct Answer
B. False
Explanation
False. The correct answer is false because according to the Bank Secrecy Act (BSA),
financial institutions are prohibited from notifying a customer that a Suspicious Activity
Report (SAR) has been filed. This is to ensure the integrity and confidentiality of the SAR
process and to prevent potential tipping off of suspicious individuals.

A customer engages in a suspicious transaction involving $ 12,000 in cash and

you file a SAR. You must also file a CTR.

A.

True

B.

False

Correct Answer
A. True
Explanation
When a customer engages in a suspicious transaction involving $12,000 in cash, it is required
to file a Suspicious Activity Report (SAR) as per anti-money laundering regulations.
Additionally, a Currency Transaction Report (CTR) must also be filed for any cash
transactions exceeding $10,000. Therefore, in this scenario, both a SAR and a CTR need to
be filed, making the statement "True" correct.
 14.

If a customer cashes an $ 11,000 business check (which your manager

authorizes you to cash), you are required to file a CTR.

A.

True

B.

False
Correct Answer
A. True
Explanation
When a customer cashes a business check of $11,000, it triggers the requirement to file a
Currency Transaction Report (CTR). A CTR is a form that financial institutions use to report
any cash transactions exceeding $10,000 in a single day. This is a legal requirement under the
Bank Secrecy Act (BSA) to prevent money laundering and other illegal activities. Therefore,
the statement "True" indicates that filing a CTR is necessary in this situation.

  15.

A customer cashes a $ 6,000 business check (which your manager authorizes

you to cash), the customer then pays $ 5,000 in cash for a wire transfer to his
mother in Dominican Republic. You must file a CTR

A.

True

B.

False

Correct Answer
B. False
Explanation
The correct answer is False. The scenario described does not meet the criteria for filing a
Currency Transaction Report (CTR). A CTR is required when a customer conducts a cash
transaction of $10,000 or more in a single day. In this case, although the customer cashes a
$6,000 business check, the subsequent payment of $5,000 in cash for a wire transfer does not
bring the total to $10,000 or more. Therefore, a CTR is not required in this situation.
  16.

“Structuring” or the intentional breaking up of a large transaction into

smaller transactions to avoid currency reporting record keeping requirements
is illegal.

A.

True


 B.

False

Correct Answer
A. True
Explanation
The explanation for the given correct answer is that intentionally breaking up a large
transaction into smaller transactions to avoid currency reporting record keeping requirements
is considered as "structuring" and it is indeed illegal. This practice is often used to evade
detection and scrutiny by authorities, and it is against the law as it undermines the
transparency and integrity of financial transactions.
  17.

A customer pays with cash for a $ 3,800 money order; you are not required to
obtain any information from this customer.

A.

True

B.

False

Correct Answer
B. False
Explanation
The statement is false because when a customer pays with cash for a $3,800 money order, it
is necessary to obtain information from the customer. This is because money orders are
typically used for larger transactions and involve a higher risk of fraud or money laundering.
Therefore, it is important to collect identifying information from the customer, such as their
name, address, and contact details, to ensure the legitimacy of the transaction and comply
with anti-money laundering regulations.
  18.

A customer pays with cash for $ 3,800 wire transfer; you are not required to
obtain any information from this customer

A.

True
 

B.

False

Correct Answer
B. False
Explanation
False. As a financial institution, it is necessary to obtain information from customers who are
making wire transfers, regardless of the payment method. This information is required for
compliance with anti-money laundering (AML) and know your customer (KYC) regulations.
The customer's identification and relevant details should be collected to ensure the legitimacy
of the transaction and to mitigate the risk of illegal activities such as money laundering or
terrorist financing.
  19.

Currency Transaction Report must be submitted to the IRS within:

A.

30 days of the transaction

B.

15 days of the transaction

C.

5 business days of the transaction

D.

3 business days of the transaction

Correct Answer
B. 15 days of the transaction
Explanation
A Currency Transaction Report must be submitted to the IRS within 15 days of the
transaction. This report is required for any cash transaction that exceeds $10,000 in a single
business day. It helps the IRS monitor and prevent money laundering and other illegal
activities. The 15-day timeframe allows for timely reporting and ensures that the IRS has
accurate and up-to-date information on large cash transactions.

Regulatory compliance is something everyone within the Company should be

proactive about.

A.

True

B.

False

Correct Answer
A. True
Explanation
Regulatory compliance refers to the adherence to laws, regulations, and guidelines that are
applicable to a specific industry or organization. It is important for everyone within a
company to be proactive about regulatory compliance because it ensures that the company
operates within the legal framework and avoids potential legal and financial consequences.
By being proactive, employees can stay updated with the latest regulations, identify potential
compliance risks, and take necessary actions to mitigate them. This helps in maintaining the
company's reputation, building trust with stakeholders, and fostering a culture of compliance.

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 0
 2.

The Chief Compliance Officer is the only person who should care about
compliance issues.

A.

True

B.
 False

Correct Answer
B. False
Explanation
This statement is false because compliance issues should not be the sole responsibility of the
Chief Compliance Officer. Compliance is a collective effort that involves everyone in an
organization. All employees, from top management to frontline staff, should be aware of and
care about compliance issues. Compliance affects the entire organization's reputation, legal
standing, and ability to operate ethically. Therefore, it is crucial for everyone to understand
and prioritize compliance in their roles and responsibilities.

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 0
 3.

Documentation is an important part of a compliance program.

A.

True

B.

False

Correct Answer
A. True
Explanation
Documentation is an important part of a compliance program because it provides evidence of
adherence to laws, regulations, and internal policies. It helps in demonstrating that the
organization has implemented and followed proper procedures to ensure compliance.
Documentation also serves as a reference for employees, auditors, and regulators to
understand the organization's compliance practices and track any necessary improvements or
corrective actions. Without proper documentation, it would be difficult to prove compliance
efforts and maintain transparency in the compliance program.

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 0
 4.
Material non-public information should be disclosed to the Chief Compliance
Officer when:

A.

It is information from within the Company

B.

It is information from an outside source

C.

You are not sure if it is material non-public information, but think it might be.

D.

All of the above

Correct Answer
D. All of the above
Explanation
Material non-public information refers to information that has not been made available to the
public and could potentially impact the value of a company's securities. It is important to
disclose such information to the Chief Compliance Officer to ensure compliance with legal
and ethical obligations. This includes information from within the company, as well as
information obtained from external sources. Additionally, if there is uncertainty about
whether certain information qualifies as material non-public information, it is prudent to
disclose it to the Chief Compliance Officer for further assessment. Therefore, all of the given
options are valid reasons for disclosing material non-public information to the Chief
Compliance Officer.

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 5.

You need to disclose personal holdings and brokerage accounts that you have
direct or indirect beneficial ownership of. This includes:
 

A.

Your spouse's accounts

B.

Your minor childrens' accounts

C.

Your adult parents' accounts when they are living in your household

D.

All of the above

Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above." This is because the question states that you need to
disclose personal holdings and brokerage accounts that you have direct or indirect beneficial
ownership of. It specifically mentions your spouse's accounts, your minor children's accounts,
and your adult parents' accounts when they are living in your household. Therefore, all of
these accounts fall under the requirement of disclosure.