Sec 6: FinCEN & USA Patriot Act

FinCEN stands for:

Financial crimes enforcement network

FinCEN is a bureau of the U.S Dept of _____

Treasury

Money Laundering occurs in what three stages:

1. Placement

2. layering

3. integration

The placement stage is where ___ enters the ______ system.

cash, Financial

The layering stage is where ___ are moved into other _____.

funds, accounts

The integration stage is where ____ are reintroduced into the economy to purchase legitimate _____.

funds, assets

Currency Transaction Report (CTR) must be filed for transactions involving currency (cash) over ____ dollars for one person in the aggregate in ____ business day.

10,000, one/single

If a person has a financial account in a foreign country, that person must report the relationship if the aggregate value of the account exceeds $_____ dollars.

10,000

Financial firms that transfer funds, including wire fund transfers of $_____ or more must collect, retain and record certain information including:

1. _____ and ____ of the transmitter and recipient.

2. Recipients’ financial institution, _____ and _____

3,000

1. name and address

2. account number and amount

Money Laundering Abatement Act requirements include:

1. Verification of the identity of any customer seeking to open an account within ___ business days.

2. Maintenance of customer identity records

3. Confirmation that the customer does not appear on any ____ list or list of embargoed countries.

1. five

2. terrorist

Member firms determine if a person is on a known terrorist list from the _______.

Office of Foreign Assets control (OFAC)

Suspected Terrorists are identified on lists called ________.

Specially Designated Nationals (SDN’s)

Financial Firms must file a SAR (Suspicious Activity Report) if:

1. on assets of $_____ or more where they detects any known or suspected Federal Criminal Violation.

$5,000

If a financial firm becomes “aware” of a suspicious transaction, the firm must file a SAR within ____ days.

30

USA PATRIOT ACT:

U: _____ and S:_____ A:____ by

P: _____ A: ______ T:_____ R:_____ to I:_____ & O:____ T:_____

United and Strengthening America by Providing Appropriate Tools Required to Intercept & Obstruct Terrorism.

______ requires many businesses and organizations to implement a written Identity Theft Program designed to detect the warning signs or red flags- of identity theft in their day-to-day operations.

Federal Trade Commissions (FTC) Red Flags Rule