American Bankers Association CRCM Exam Practice Test Instant Access

Question 1

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

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

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

CA 2 percent error rate on the bank's CTRs

DFailure to file suspicious activity reports

Answer : D

Question 2

The manager of Main Street branch calls and relates the following information: John Smith purchased a cashier's check for $1,000 cash at 10:00 a.m. on Tuesday. At 11:30 a.m. Mr. Smith returned and purchased a cashier's check for $2,500 cash and deposited traveler's checks totaling $9,000 into his checking account. At 4:00 p.m. Mr. Smith returned and deposited $8,000 cash into his checking account. This deposit was after normal banking hours, so it was recorded as of Wednesday's business date. What action should the bank take?

ANone, because no single cash transaction exceeded $10,000

BFile a Currency Transaction Report (CTR) for $11,500

CRecord the $1,000, $2,500, and $9,000 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold

DRecord the $1,000 and $2,500 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold

Answer : D

Question 3

For how long must a bank keep records of transactions involving currency in amounts greater than $10,000?

ATwo years

BThree years

CFive years

DSeven years

Answer : C

Question 4

Mrs. Evans, a customer of First National Bank, deposits $15,000 in cash to her account. During the transaction, Mrs. Evans explains that she received the money in the mail from her sister in Europe. What responsibility does the bank have?

AComplete a Currency Transaction Report (CTR)

BComplete a United States Customs form 4790 (CMIR)

CComplete both a currency transaction report and a CMIR

DComplete a CTR and encourage Mrs. Evans to file a CMIR

Answer : D

Question 5

First National Bank has several exempt customers.

* Alpha is an exempt person because its stock is listed on a major stock exchange.

* Beta is an exempt person because it meets the nonlisted customer requirements.

* Zeta is exempt because it is a payroll customer. For which customer(s) must the bank conduct an annual review to determine its continuing eligibility to be exempt from CTR filings?

AAlpha

BBeta

CZeta

DBeta and Zeta

Answer : D

Question 6

Which of the following is NOT a requirement when a bank pays an employee a fee for referring a high-net-worth or institutional customer to a broker?

AThe bank must have a written agreement with the broker

BThe bank must give a disclosure to the customer

CThe bank must reasonably believe that the customer is a high net worth or institutional customer

DThe employee must be registered with the bank's regulatory agency

Answer : D

Question 7

Which of the following is a high-net-worth customer?

AAn individual with $5 million in assets, including her home

BA corporation with $15 million in revenues

CA couple with a net worth of $10 million

DAn individual who is not acting with his spouse, with $1 million in assets and another $3 million in community property

Answer : C

American Bankers Association Certified Regulatory Compliance Manager Exam Practice Test