Unlock hundreds more features
Save your Quiz to the Dashboard
View and Export Results
Use AI to Create Quizzes and Analyse Results

OR
Sign inSign in with Facebook
Sign inSign in with Google
Quizzes > Business & Finance > Finance & Economics

BSA/AML Compliance Quiz: Test Your BSA Knowledge Now!

Ready for a free BSA/AML certification? Dive into this AML compliance quiz now!

Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration free BSA AML compliance quiz, 12 scored questions boosting confidence on dark blue background

This BSA test helps you practice key Bank Secrecy Act and AML rules with 12 scored questions. Use it to spot gaps before an exam or training and build real confidence. Warm up with the BSA basics quiz, then try the AML practice quiz . Start when you're ready and see how you score.

Which federal agency is responsible for administering the Bank Secrecy Act?
Securities and Exchange Commission (SEC)
Federal Deposit Insurance Corporation (FDIC)
Financial Crimes Enforcement Network (FinCEN)
Office of the Comptroller of the Currency (OCC)
The Financial Crimes Enforcement Network (FinCEN) is part of the U.S. Department of the Treasury and is charged with administering and enforcing the Bank Secrecy Act. FinCEN collects and analyzes information about financial transactions to combat money laundering, terrorist financing, and other financial crimes. For more details, see .
At what cash threshold must a financial institution file a Currency Transaction Report (CTR)?
$10,000
$15,000
$5,000
$20,000
The Bank Secrecy Act requires a Currency Transaction Report for any cash transaction exceeding $10,000 in a single business day. This reporting threshold helps regulators monitor large cash movements that could indicate money laundering. For more information, see .
What is the primary purpose of the BSA's recordkeeping and reporting requirements?
To standardize interest rates across banks
To facilitate financial institution profitability
To detect and prevent money laundering and illicit finance
To regulate securities trading practices
The core objective of BSA recordkeeping and reporting is to detect and prevent money laundering, terrorist financing, and other illicit financial activities. By requiring detailed transaction records, authorities can trace suspicious flows of funds. See for further details.
Under the BSA, how long must records such as CTRs and SARs be retained?
3 years
5 years
10 years
7 years
Bank Secrecy Act regulations mandate that records supporting CTRs, SARs, and other required filings be retained for at least five years from the date of the report. This retention period ensures adequate time for regulatory review and law enforcement investigations. For official guidance, refer to .
Which component of an AML program focuses on verifying a customer's identity at account opening?
Customer Due Diligence (CDD)
Suspicious Activity Monitoring (SAM)
Customer Identification Program (CIP)
Enhanced Due Diligence (EDD)
The Customer Identification Program (CIP) is specifically designed to verify the identity of customers when they open accounts. CIP requirements include collecting name, address, date of birth, and identification number. See for further details.
Within how many calendar days must a Suspicious Activity Report (SAR) be filed after detecting suspicious activity?
15 calendar days
60 calendar days
90 calendar days
30 calendar days
Financial institutions must file a SAR within 30 calendar days after discovering facts that may constitute a basis for filing. If no suspect is identified, the deadline may be extended to 60 days. See .
Which of the following transactions would most likely require enhanced due diligence?
A high-value wire transfer to a high-risk jurisdiction
An ATM withdrawal by a long-standing customer
A domestic retail deposit under $5,000
A consumer loan application
Enhanced Due Diligence (EDD) is required for transactions that pose higher risk, such as large wire transfers to jurisdictions with weak AML controls or known money laundering concerns. EDD involves deeper investigation of the customer and source of funds. Refer to .
Under the Customer Due Diligence rule, a beneficial owner is generally defined as an individual owning more than what percentage of a legal entity?
50%
10%
20%
25%
The Beneficial Ownership Rule under BSA requires identification of individuals who own 25% or more of a legal entity or who exercise substantial control. This threshold helps institutions detect hidden ownership structures. For full rule text, see .
What is 'structuring' in the context of BSA compliance?
Using shell companies for loans
Smuggling cash across borders
Investing in foreign securities
Splitting transactions to avoid CTR filing
Structuring involves breaking up large cash transactions into smaller ones to evade the $10,000 CTR threshold, which is illegal under the BSA. Institutions must file CTRs for transactions over the threshold, even if they are part of structured schemes. More details at .
Which of the following is typically considered a politically exposed person (PEP)?
Local branch bank manager
Middle manager at a public company
State tax auditor
Foreign minister of another country
PEPs are individuals who hold prominent public functions, such as heads of state, senior politicians, and foreign ministers. They pose a higher risk due to potential for corruption. Financial institutions must apply enhanced monitoring for PEPs. See .
Which IRS form must businesses file for cash payments over $10,000 received in a trade or business?
Form 311
Form 8300
Form 1120
Form 1099
Form 8300 must be filed by businesses to report receipt of more than $10,000 in cash in a trade or business. This requirement assists in detecting large cash flows that could facilitate money laundering. For instructions, see .
Which OFAC obligation must U.S. financial institutions comply with?
Filing CTRs within 5 days
Reporting all domestic checks over $5,000
Freezing accounts of Specially Designated Nationals (SDNs)
Providing customer data to foreign regulators
U.S. financial institutions must block or freeze assets belonging to individuals and entities listed on the OFAC Specially Designated Nationals (SDN) list. They must also report these blocked transactions to OFAC. More information at .
Which element is NOT required under the BSA's Customer Identification Program (CIP)?
Customer's Social Security or Taxpayer ID number
Customer's date of birth
Customer's residence address
Customer's phone number
CIP rules require name, date of birth, address, and identification number (e.g., SSN), but not phone number. Phone numbers may be collected for business reasons but are not mandated by the BSA CIP. See .
An institution uncovers a shell company with no apparent business purpose. Under the BSA, which action must it take?
File a Currency Transaction Report (CTR)
File a Report of Foreign Bank and Financial Accounts (FBAR)
Freeze the account immediately without notice
File a Suspicious Activity Report (SAR)
Discovery of a shell company with no legitimate business purpose is suspicious and must be reported via a SAR. SARs alert FinCEN and law enforcement to potential illicit activity. For guidance, see .
Independent testing of an AML compliance program must be conducted at least how often?
Monthly
Annually
Biennially
Quarterly
BSA regulations require that financial institutions subject independent testing of their AML program at least once every 12 months to ensure effectiveness and compliance. This testing can be conducted internally by qualified personnel or externally. See .
Which approach best describes how institutions should apply Customer Due Diligence?
A one-size-fits-all approach
Geography-only screening
A strictly threshold-based method
A risk-based approach tailored to customer risk
The BSA calls for a risk-based approach to CDD, allocating resources based on customer risk profiles, geography, products, and services. Institutions must identify, assess, and mitigate money laundering risks proportionate to each customer's risk level. See .
On a FinCEN Suspicious Activity Report, which narrative element is mandatory?
Instructions for law enforcement investigation
Approximate probability of crime
Customer's telephone number
Detailed description of the suspicious activity
The SAR narrative must include a clear, concise, and detailed description of the suspicious activity observed, supporting law enforcement analysis. Other fields collect known information but the narrative is central for investigators. See .
Which of the following is an example of trade-based money laundering?
Structuring cash deposits below $10,000
Under-invoicing export goods to disguise value
Engaging in insider trading on securities
Using shell companies for domestic wire transfers
Trade-based money laundering often involves misrepresenting the price, quantity, or quality of goods to move value across borders covertly, such as under-invoicing exports. This disguises illicit funds within legitimate trade transactions. For more, see .
Under the 2016 FinCEN Beneficial Ownership rule, if no individual owns 25% or more of a legal entity, who must be identified as the beneficial owner?
Senior managing official with significant control
Compliance Officer
Chief Financial Officer (CFO)
Board of Directors collectively
When no individual meets the 25% ownership threshold, the rule requires identification of a 'senior managing official' who exercises significant control, such as a CEO or president. This ensures transparency for entities without clear majority owners. See .
0
{"name":"Which federal agency is responsible for administering the Bank Secrecy Act?", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Which federal agency is responsible for administering the Bank Secrecy Act?, At what cash threshold must a financial institution file a Currency Transaction Report (CTR)?, What is the primary purpose of the BSA's recordkeeping and reporting requirements?","img":"https://www.quiz-maker.com/3012/images/ogquiz.png"}

Study Outcomes

  1. Understand BSA Fundamentals -

    Grasp the core provisions and objectives of the Bank Secrecy Act to ensure compliance with anti-money laundering regulations.

  2. Identify Money Laundering Red Flags -

    Recognize common transaction patterns and behaviors that signal potential money laundering in an aml compliance quiz format.

  3. Apply Anti-Money Laundering Principles -

    Use real-world scenarios in the BSA test to practice implementing key AML controls and reporting requirements.

  4. Analyze Compliance Scenarios -

    Evaluate sample case studies to pinpoint weaknesses in internal processes and strengthen risk mitigation strategies.

  5. Reinforce Exam Preparation -

    Leverage this free bsa/aml certification quiz to review critical concepts and boost confidence before a certification test.

  6. Evaluate Quiz Performance -

    Track your progress across 12 scored questions to measure understanding and identify areas for further study.

Cheat Sheet

  1. The $10,000 CTR Trigger -

    Under the BSA, financial institutions must file a Currency Transaction Report (CTR) for any cash transaction exceeding $10,000. Remember "10K RULE" as a mnemonic to recall the $10K threshold. According to FinCEN guidelines, this rule is a cornerstone of AML compliance and a key concept for your bsa test.

  2. Five Pillars of an Effective AML Program -

    An AML compliance program rests on five pillars: risk assessment, internal controls, a designated BSA officer, ongoing training, and independent audit. Use the acronym "R-C-D-T-I" to memorize these elements. As outlined by the FFIEC, these are mandatory for any bsa/aml certification free prep or anti-money laundering test.

  3. The Three Stages of Money Laundering -

    Placement, layering, and integration form the classic AML framework for tracking illicit funds. Think "PLI" as your mnemonic, where placement is initial deposit, layering hides trails, and integration returns "clean" money. This model is widely taught in university compliance courses, ACAMS certified training, and is a staple of aml compliance quiz questions.

  4. Customer Identification Program (CIP) Essentials -

    A robust CIP verifies customer identity using reliable documents like passports or driver's licenses before account opening. The USA PATRIOT Act enforces these checks to prevent identity fraud; remember "I.D. Verified" to link identity and documentation. Proper CIP protocols are a frequent topic on any bank secrecy act quiz or aml compliance quiz.

  5. Suspicious Activity Reports (SARs) Criteria -

    Financial institutions must file a SAR within 30 days of detecting suspicious activity, such as structuring or unusual wire patterns. A quick mnemonic is "30-DAY ALERT" to recall the reporting window and urgency. Official FinCEN documentation outlines these requirements, making them vital for your bsa test practice.

Make a Quiz (FREE) Copy & Edit This Quiz Create a Quiz with AI

Finance & Economics Quizzes

Powered by: Quiz Maker