BSA/AML and ID Theft Red Flags

Customer Identification Program (CIP). In the credit union's case MIP Member
Identification Program. What is the reason for this program?

A. To give the Credit Union a reasonable belief of the true identity of the member.

B. Because a CIP Program is required by the USA Patriot Act section 326

C. Because CIP Programs were implemented in 2003

D. All of the above

The CIP program at American 1 CU includes collecting the following information
when opening a new account.

A. Valid Identification

B. Valid Tax ID number

C. Pull a Credit Report

D. Run the name against the OFAC list

E. All of the above

The Bank Secrecy Act (BSA) was enacted in 1970 to curb money laundering.
However after September 11, 2001 the BSA is also used for tracking money
that may be used for

A. Buying drugs

B. Terrorism Financing

C. Fraudulent Checks

D. ATM Fraud

A Currency Transaction Report (CTR) is used for tracking cash transactions
for

A. $10,000.00

B. $9,999.99

C. $10,000.01

D. Any cash transaction in the amount of C. (above) or more.

CTR Information is to be completed by the person completing the transaction
and the information is then sent to the Compliance department

A. True

B. False

Records of Monetary Instruments between 3K and 10K purchased each day
are monitored in the compliance department.

A. True

B. False

ALL suspicious activity should be reported to the Compliance department. The
activity should be emaled to the compliance officer with as many details as
possible. You should never feel uncomfortable about emailing what you feel is
suspicous. The information goes to no other department and is discussed with
no one out side the compliance department. Suspicious activity can include
members, nonmembers, co-workers and vendors.

A. True

B. True

C. True

A Structuring Report is run once a month listing accounts for which cash deposits
or withdrawals came to more the 10K by last day of the month. The report lists
individuals and business. This report is looking for

A. Patterns of deposits or withdrawls of less than 10K who may be trying to avoid

CTR reporting

B. Members that like to come to chat

C. Members that could be cross offered to on a more consistent basis

There are two reports run against the membership on a nightly bases, the
OFAC (Office of Foreign Asset Control ) and FinCEN (Financial Crime Enforcement
Network). If there is a "true" hit and a member of A1CU is on either list, their
account will be frozen and the Treasury Department notified by the Compliance
Department.

A. True

B. False

Consequences for not adhering to the BSA as set by the Federal government.

A. Fines and/or prison time (members or staff)

B. Property involved can be seized

C. Loss of Charter for the Credit Union

D. Removal of directors, officers or employess

E. All of the above.