Exercise
Answer the following questions.
- 1. The Bank Secrecy Act requires that money services businesses keep Monetary Instrument Log for five years of money transfers of:
- A. $10,000 or more
- B. $5,000 or more
- C. $3,000 or more
- D. $500 or more
- 2. An executing broker-dealer’s anti–money laundering compliance program would not require the following:
- A. Designation of an AML officer
- B. Approval by the broker-dealer’s board of directors
- C. Annual review of the program
- D. Ongoing training of personnel
- 3. Evan works at a brokerage firm where he processes customer deposits. Evan notices that one customer deposits $9,500 every week. What should Evan do?
- A. Report this to his manager because it is a sign of possible money laundering.
- B. Ask the customer if she is laundering money.
- C. Put a freeze on the account and tell the customer that it is due to suspicious activity in the account.
- D. Nothing—the deposits are not big enough to warran