Which of the following transactions requires completion of FinCEN Form 104, a CTR?

Cashing of a $14,000 check for a customer

Deposit of checks totaling $12,000 to a checking account

Cash purchase of a cashier's check for $7,800

Cash withdrawal of $3,000 from a checking account

Cashing of a $14,000 check for a customer

On which of the following loans must a bank maintain records under the Bank Secrecy Act?

All loans exceeding $10,000, but not secured by real property

All loans exceeding $5,000 and secured by real property

All loans exceeding $5,000, but not secured by real property

All loans exceeding $10,000 and secured by real property

All loans exceeding $10,000, but not secured by real property

An individual comes into the bank and makes a $6,000 cash deposit into a checking account. At the same time, the individual buys a $7,000 cashier's check with cash. According to the Bank Secrecy Act, what is the bank is required to do?

Obtain the recordkeeping information for the purchase of the cashier's check and complete a CTR for the total cash-in transaction of $13,000

File a CTR for the $6,000 cash deposit

Aggregate the transactions and retain information about the purchase of the cashier's check

Obtain the recordkeeping information for the purchase of the cashier's check and complete a CTR for the total cash-in transaction of $13,000

Which of the following is NOT considered an acceptable form of identification for an individual when completing a CTR?

Long-term deposit account relationship

State-issued photo identification (e.g., driver's license)

Photo identification card issued by a local government agency

Which of the following customers may be exempted under Phase II of the Bank Secrecy Act?

Businesses whose stocks are traded on a national stock exchange

In which of the following circumstances is it LEAST appropriate for a bank to file a SAR regarding Internet activity?

Bank determines through its transaction-monitoring program that a customer is making electronic transfers between his own checking and savings accounts that are just below the $10,000 reporting level

Bank determines that one of its customers is the victim of identity theft

Bank becomes aware of identity theft of its domain name (i.e., another entity selects a name similar to the bank's in order to confuse customers and obtain confidential financial information)

Bank discovers that someone has hacked into its data system in order to obtain confidential customer data

Bank determines through its transaction-monitoring program that a customer is making electronic transfers between his own checking and savings accounts that are just below the $10,000 reporting level

When completing and filing a SAR, what is the bank NOT required to do?

Submit a copy of the supporting documentation with the SAR

Submit the SAR within 30 days of the initial detection of facts

Report the SAR information to the bank's board of directors

Maintain a copy of the SAR and supporting documentation for 5 years

What should a bank's Bank Secrecy Act compliance program include?

Designation of individuals responsible for day-to-day compliance

The one-year record retention requirements

Designation of individuals responsible for day-to-day compliance

A list of types of loans covered by the Act

A routine review of account records reveals that suspicious activity involving foreign currency has occurred in the account of one of the bank's directors. Which of the following actions should be taken FIRST?

The bank's board of directors should discuss the account activity without the affected director being present.

The bank's president should meet with the affected director to discuss the account activity.

The bank should file a CTR, checking the box that indicates the report is for suspicious activity.

A compliance officer is constructing a review of a transaction in which M, a deposit account customer, used cash to purchase travelers' checks in an amount of $4,000. The compliance officer must determine compliance with financial recordkeeping and currency reporting regulations. Which of the following pieces of information must be part of the bank's records for this transaction?

The serial numbers of the travelers' checks purchased

The name of the branch where the transaction occurred

When all the required information is NOT provided by a person purchasing a cashier's check with $8,000 in currency, what should the bank do?

Complete the transaction and record available information

Complete the transaction and file a SAR

Complete the transaction and insist that the customer return with the required information

Which of the following is MOST effective in strengthening an anti-money- laundering program involving cash transactions?

Monitor cash transactions of less than $10,000 for suspicious patterns

Review all deposits of $25,000 or more

Complete CTR worksheets on all cash transactions of $5,000 or more

Complete SAR worksheets on all cash transactions of $5,000 or more

Monitor cash transactions of less than $10,000 for suspicious patterns

For which of the following is a bank most likely to be in danger of receiving a cease and desist order?

Failure to file suspicious activity reports

Repetition in a BSA examination of a noncritical deficiency reported in a previous BSA examination

Failure to document AML training to its part-time clerical employees

A 2 percent error rate on the bank's CTRs

Failure to file suspicious activity reports

What should a bank do when it receives a request from a customer to transfer funds to an individual in Iraq?

Conduct the transfer if the individual and the financial institution are not on the SDN list

Conduct the transfer as requested

Conduct the transfer if the individual and the financial institution are not on the SDN list

Conduct the transfer and then notify OFAC immediately

ACME Bank is a $600 million institution with 15 branches within three counties. Because of its proximity to Mexico, the bank has many foreign national customers and makes many foreign wire transfers for its customers. Currently the bank's branch managers print the OFAC list of SDNs and place them in strategic places in each branch. The wire transfer department keeps its own copy of the list. The compliance officer has implemented an annual auditing program to check the bank's compliance with OFAC regulations. The findings of this audit are provided to the bank's board of directors annually. The bank's regulatory agency has indicated to management that the bank has a high risk for BSA/AML/OFAC compliance. Of the following actions, which would be the most effective to strengthen the bank's OFAC compliance?

Purchase and implement interdiction software for the wire transfer area

Conduct compliance audits twice a year

Purchase and implement interdiction software for the wire transfer area

As an internal control procedure, require the BSA officer to check the OFAC Web site daily for any changes to the SDN list

Routinely provide account transaction information to federal security agencies so suspicious patterns can be detected

State National Bank is a $250 million community bank. It makes a variety of consumer and commercial loans, regularly transmits funds via wire transfers for its customers, and issues commercial and stand-by letters of credit. Which of the following transactions can State National make without checking the OFAC SDN list and without incurring liability?

None. The bank can be liable for all.

Send a wire transfer via its correspondent bank in New York for a commercial customer.

Sell a cashier's check payable to a third party.

Cash an on-us check over-the-counter for a noncustomer.

None. The bank can be liable for all.

FA presents cash to the bank and seeks to wire it to his spouse, RA, in Cub A. The OFAC list identifies RA as a specially designated national. Under OFAC Regulations, what should the bank do?

Conduct the transfer as requested and take no further action

Conduct the transfer as requested and notify OFAC immediately

Conduct the transfer only if the bank determines that Cuba is not a blocked country

Your institution has identified a transaction by an existing depositor that should be blocked under OFAC requirements. The branch manager contacts you for specific instructions. Before reporting the transaction to OFAC, what should the bank do?

Place the funds in an interest-bearing account

Your bank's president comes back from an industry conference and tells the compliance officer that she attended a presentation about OFAC. She heard the bank could be fined for not adhering to OFAC requirements. Thus, she has directed that every bank transaction be reviewed for OFAC compliance. What is the most appropriate statement the compliance officer could make to the bank president?

The bank has assessed its OFAC risk and has implemented risk-based OFAC procedures

The bank is already in compliance because OFAC checks are performed on all new depositors

The bank has assessed its OFAC risk and has implemented risk-based OFAC procedures

OFAC does not apply because the bank does not conduct business in foreign countries or with foreign nationals

Banks are usually not fined for OFAC violations unless they conduct transactions with SDNs or blocked countries

The BSA officer has just been notified by the chief operations officer that, due to a glitch in the bank's OFAC interdiction software, wires have been regularly transmitted to a bank on the SDN list. Based on the OFAC Enforcement Guidance, what should the BSA Officer do FIRST to attempt to mitigate any penalties?

Stop and hold all wires to the bank on the SDN list

Review the OFAC wire policies and procedures to determine how the errors occurred

Stop and hold all wires to the bank on the SDN list

Investigate the customer who sends these wires

Self-report the activity to OFAC

Bank A offers safe deposit services in a vault area that contains a door too narrow for wheelchair passage. The bank cannot widen the door because of the vault construction. Therefore, when a customer in a wheelchair needs access to a safe deposit box the customer cannot enter the vault. The bank provides viewing rooms for all safe deposit customers, and one of these rooms has a door wide enough for a disabled customer to enter. Which of the following must the bank do to provide safe deposit box service to wheelchair customers?

Bring the safe deposit box to the customer and provide an accessible area where the customer may privately have access to the contents

Remove the old vault and install a new vault to allow wheelchair access

Construct an alternative facility in which to store the safe deposit boxes of wheelchair customers

Require wheelchair customers to be accompanied by a walking individual to retrieve the safe deposit box for the customer

Bring the safe deposit box to the customer and provide an accessible area where the customer may privately have access to the contents

The mortgage lending department of Bank XYZ received some inquiries from potential applicants who are visually impaireD. The bank would like to comply with ADA concerning these potential applicants, but it does not want to spend a significant amount of money. Which of the following statements is true?

The bank may have a loan assistant read each loan application and disclosure document to the applicant and assist in completion of the forms.

The bank must have its loan application and disclosures translated into Braille.

The bank may have a loan assistant read each loan application and disclosure document to the applicant and assist in completion of the forms.

The bank may require the applicant to bring a sighted friend or relative to the bank to assist in completing the application.

The bank may make a policy not to lend money to blind persons.

Which of the following activities is permitted under ADA?

Prohibiting smoking anywhere in the bank building

Issuing a policy against making loans to health care providers who regularly work with infectious patients

Prohibiting smoking anywhere in the bank building

Providing readers to visually impaired loan applicants for a $15 fee

Requiring disabled depositors to use a teller window that is specially constructed for the use of disabled persons

Under the ADA, what can an employer do?

Inquire about a disability when offering a job provided the disability is related to the job requirements

Inquire about a disability if the disability is obvious to the interviewer at the time of the job interview

Inquire about a disability when offering a job provided the disability is related to the job requirements

Refuse to make an accommodation for a disability if 50 persons or fewer are employed

Note the disability in the employee's file so that other managers will be aware of it when interviewing the employee for future position changes

Which of the following employment practices is NOT legal under ADA?

Establishing a policy that prohibits hiring alcoholic applicants

Establishing a policy that prohibits smoking at any time at work

Holding employees who are certified alcoholics to the same performance standards as other employees

Refusing to hire an employee who currently uses illegal drugs

Bob's wife is HIV-positive due to a blood transfusion during an appendectomy 15 years ago. She is not yet sick, but takes medication to prevent the onset of AIDS. Bob occasionally needs to take time off from work to take her for testing at Johns Hopkins in Baltimore. Because of complaints about Bob's exposure to this disease, employees have asked HR to limit his contact with them and with customers. The bank has asked Bob not to eat in the lunchroom with the other employees and has placed Bob in a position where he has limited customer contact. Does this company have any potential ADA liability?

Yes. Because the manager has regarded Bob as having a disability, he has been ''regarded as'' disabled and the ADA applies

No. Bob's exposure to HIV could endanger other employees and customers

No. Because the hiring manager does not know that Bob actually has HIV or AIDS, there is no liability

Yes. Because the manager has associated Bob with this disease, the ''associated with'' rule applies

Yes. Because the manager has regarded Bob as having a disability, he has been ''regarded as'' disabled and the ADA applies

Roger Jameson is the head of the consumer loan department at First National Bank. He is a regular participant in a lending committee of a local finance trade association. The committee meets once a month at a local hotel. After the committee meetings, Roger and several other committee members who are officers at other banks in town go to a hotel restaurant and talk for a couple of hours before leaving. During these informal conversations Roger learned that the other members require the car dealerships in town that sell consumer installment contracts to the banks to refrain from selling them to local savings and loan associations. Roger believes that this is a good idea and would like to implement it at First National. Is there a problem with doing so?

Yes. Restricting the dealerships is a restraint of trade.

No, because interest rates are not involved.

No, because this decision would have no effect on the cost to the consumer.

Yes, unless there are enough dealerships in town to provide contracts to all of the institutions.

Yes. Restricting the dealerships is a restraint of trade.

First National is developing a consumer checking account that can access a line of credit. This is the first time the bank has ever had such a product, although this type of credit facility has been popular with other banks in town. To determine what interest rate to charge on this account, an officer of First National called some of his friends at other local banks offering this type of credit and asked several questions, including the interest rate charged on this type of account and what internal factors the banks use to set the rate. After obtaining this information, First National determines that it could charge approximately 2 percent more than it originally planneD. Is there anything wrong with this course of action?

Yes. Communicating with competitors for purposes of setting prices is wrong.

No. Communication itself is never wrong regardless of the subject matter.

Yes. The bank should have disguised its identity in calling its competitors.

No. The bank could probably have determined the prices eventually without calling the banks directly.

Martha Smith of First National Bank is attempting to close a large commercial loan to a manufacturing equipment company. In negotiating the interest rate on the loan Martha states that if the company will move some of its demand accounts to the bank, it could get a lower interest rate. Is this wrong?

No. The bank may condition the loan on the customer placing a deposit in the bank.

Yes. It violates the anti-tying provisions.

Yes. It is a restraint of trade.

No, unless moving the accounts is a condition of the loan..

No. The bank may condition the loan on the customer placing a deposit in the bank.

First National Bank owns a data processing company that sells financially related data processing services to various businesses in the community. Daniel Tyler, a loan officer, is negotiating a loan to a local CPA firm. He would like to make the loan conditional on the CPA firm's use of the subsidiary data processing firm.May he do so?

Yes, because it is not a bank service.

Yes, because it is not related to pricing.

No, unless the company was planning to obtain a new data processing service provider anyway.

Mills Company, Inc., is a manufacturing company with a working capital line of credit from First National Bank. The credit agreement governing the loan states that Mills cannot obtain additional unsecured credit without the approval of the bank. Mills believes that such a clause violates the Bank Holding Company Act's anti-tying clause. Does it?

No, since this clause relates to the soundness of the credit

Yes. It is a restraint of trade.

Yes, unless the bank will reasonably allow additional credit at Mills's request.

No, since this clause relates to the soundness of the credit

No, unless the bank refuses to grant additional credit to Mills itself

Which of the following would NOT be acceptable under the Bank Bribery Act and the relevant guidelines?

A gift of a hunting rifle to a loan officer from a borrower at Christmas

A luncheon paid for by a bank customer after a transaction is closed

A gift of a hunting rifle to a loan officer from a borrower at Christmas

The gift of a gold watch to a loan officer from a customer who is the loan NOTES officer's cousin

An award of a writing pen and pencil set to a bank officer by a civic organization

Which of the following is NOT a written record the bank should retain in complying with the Bank Bribery Act?

A list of all gifts received by bank officers during the year

A copy of the bank's internal code of conduct

A list of all gifts received by bank officers during the year

Disclosures of unauthorized gifts

A list of all bank officers' outside business interests

Harvey Smith is a loan officer at First National Bank. Which of the following of Harvey's outside business interests may be considered to be a conflict of interest that should be disclosed to the bank?

His wife's position as chair of the board of a local bank

His ownership of 4,000 shares of stock in a local car dealership (the car dealership is not a bank customer)

His wife's position as chair of the board of a local bank

His attendance at a party hosted by one of his customers where other financial institutions were represented

His role as honorary chair of a fund drive for a local charitable organization

Martin Taylor, a loan officer at First National Bank, is a long-time friend of Bill Evans, a local homebuilder. Bill would like a line of credit at the bank and discusses the potential loan with Martin. During the discussion, Martin expresses his desire to build a house one day and Bill offers to build him one ''at cost plus 5 percent.'' If Martin accepts Bill's offer, can he continue to act as his loan officer?

No. The value of the gift is too great.

Yes, if Martin discloses this fact to the bank.

Yes, if Martin does not let the discount on the house affect his decision making process.

Yes, if the bank's code of conduct allows such activity.

Which of the following factors would NOT be considered when evaluating whether specific behavior by a banker violates the statute?

Whether a business transaction was consummated as a result

The social and family ties of the banker

The standard for business amenities and entertaining in that particular part of the country

Whether there was a demonstrable business purpose

Whether a business transaction was consummated as a result

When does a gift accepted by a banker clearly violate the Bank Bribery Act?

When it is given with corrupt intent

When it is given for personal reasons

When it is given with corrupt intent

When it is valued at a dollar amount exceeding $50

When it is not given in connection with a generally accepted holiday

Which of the following transactions does NOT require prior approval of the Federal Reserve Board?

The acquisition of 25 percent of voting stock of a bank by another bank, in good faith, in its fiduciary capacity with no power to vote

The formation of a bank holding company

The acquisition by a bank holding company of a subsidiary

The acquisition of 25 percent of voting stock of a bank by another bank, in good faith, in its fiduciary capacity with no power to vote

The acquisition of 25 percent of voting stock of a bank by another bank in its fiduciary capacity for the benefit of the acquiring bank's employees

ABA CRCM Practice Test 7 - Free Online Exam Questions 241-280

Spam

Selling illegal goods, money scams etc.

Hate Speech

Serious attack on a group.

Harassment and bullying

Harassing an individual (including doxing)

Harmful activities

Threatening or glorifying violence or serious harm, including self-harm

Adult content (Consensual)

Nudity/Sexual content

Sexual exploitation and abuse (child safety)

Sexually explicit or suggestive imagery or writing involving minors

Sexual exploitation and abuse (adults and animals)

Sexually explicit or suggestive imagery or writing involving non-consenting adults or non-humans

Plagiarism

Reusing content without attribution (link and blockquotes)

Poorly written

Not in English or has very bad formatting, grammar, and spelling

Inappropriate credential

Author's credential is offensive, spam, or impersonation

Other

Ex. Illegal content, incomplete question...

ABA CRCM Practice Test 7

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