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ABA CRCM Practice Test - Questions Answers, Page 44

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List of questions

Question 431

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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?

Question 432

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

Question 433

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

Question 434

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Which of the following countries are currently subject to the Office of Foreign Assets Control Regulations?

Question 435

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

Question 436

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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

Question 437

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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 s

Question 438

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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?

Question 439

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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

Question 440

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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

Related questions

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

Martha Whitmire, the BSA Compliance Officer for First National Bank, is responsible for monitoring the bank's daily currency activity and wire transfers, for compliance with information retention and reporting requirements. Ms. Whitmire notices during her review on March 10 that, during the previous two weeks, a transaction occurred on the same account several times during the week. The activity appeared at one branch office as cash deposits in dollar amounts under the reporting thresholds. Ms. Whitmire discusses this activity with the branch manager and determines that this same deposit activity occurred several times during the previous six weeks. She then conducts a more extensive examination of the account's activity for several months and discovers that cash deposits were made at one branch office and purchases of bank cashiers checks were made by withdrawals from the same account at a different branch office. All withdrawals and purchases of cashier's checks were for the identical amount as the cash deposits.Which statement best describes Ms. Whitmire's responsibility?

Fastfood, InC. , a nationwide restaurant chain, opened an account at First National Bank last year. Fastfood is making daily deposits in amounts of $15,000 to $20,000. First National needs to determine if this company is an exempt person. What should the bank do first?

Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:

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?

In April Lillian Redmond, the teller supervisor for First National Bank, discovers five counterfeit $20 bills in several teller drawers. In May and in June she discovers two additional counterfeit $20 bills. She has no knowledge of criminal activity on the part of any of the bank's employees or customers. She does not suspect any particular person in this transaction. Which of the following statements is true?

A financial institution may provide a customer with a short form initial notice at the same time as it delivers an opt-notice. The short form notice must:

What insurance disclosures are required in the lease disclosure statement?

The compliance program should address plans to verify adherence to applicable regulations through:

A compliance officer receives a call from a loan officer who asks for adv ice on what she should do with a stock certificate (1,437 shares of IBM) from a new loan customer who wants to pledge it in support of a loan that has been approved at your bank. What should the compliance officer tell her FIRST?

Question 431

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?

Refuse the transaction

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

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Question 432

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

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

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Question 433

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

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

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Question 434

Which of the following countries are currently subject to the Office of Foreign Assets Control Regulations?

North Korea

Jordan

Bahrain

Russia

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Question 435

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

Conduct the transfer as requested

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

Block the transfer

Conduct the transfer and then notify OFAC immediately

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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?

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

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Question 437

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?

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.

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Question 438

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?

Block the transfer

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

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Question 439

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?

Reject the transaction

Process the transaction

Close the customer's account

Place the funds in an interest-bearing account

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Question 440

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 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

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Total 463 questions

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