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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 221 - CRCM discussion

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First National Bank, a U.S. bank, is contacted by Manufacturing Company, InC. , a U.S. company, to finance its transaction with Country Z, a boycotting country. Payment will be made through a letter of credit in favor of Manufacturing Company at its U.S. address. First National Bank knows that the letter of credit will contain restrictive boycott conditions that would prevent the bank from implementing it. First National Bank suggests to Manufacturing Company, InC. , that it set up a shell corporation in Country Y, a nonboycotting country, and have the shell corporation be the beneficiary of the letter of credit. Does First National Bank have any problem with this transaction?

A.
No. The transaction is now not subject to Department of Commerce regulations because the beneficiary is not a U.S. company.
Answers
A.
No. The transaction is now not subject to Department of Commerce regulations because the beneficiary is not a U.S. company.
B.
Yes. The transaction is set up to evade the regulation and First National Bank is liable.
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B.
Yes. The transaction is set up to evade the regulation and First National Bank is liable.
C.
No. The transaction is set up to evade the regulation, but First National Bank is not liable because Manufacturing Company, InC. , actually effected the transaction.
Answers
C.
No. The transaction is set up to evade the regulation, but First National Bank is not liable because Manufacturing Company, InC. , actually effected the transaction.
D.
No. First National should have Manufacturing Company, InC. , sign a statement accepting full responsibility for the establishment of the shell corporation.
Answers
D.
No. First National should have Manufacturing Company, InC. , sign a statement accepting full responsibility for the establishment of the shell corporation.
Suggested answer: B
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asked 16/09/2024
harinder giri
33 questions
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