AAP Compliance and Audit 2

Question 1

The unauthorized entry return rate threshold (using codes R05, R07, R10, R29, R51) that triggers NACHA scrutiny is:

Accepted Answer

0.5% of debit entries originated

Answer

1.0% of debit entries originated

Answer

3.0% of debit entries originated

Answer

15.0% of debit entries originated

Question 2

Regulation E primarily protects:

Accepted Answer

Consumers from unauthorized electronic fund transfers

Answer

Businesses from ACH fraud and unauthorized debits

Answer

ODFIs from Originator liability for unauthorized entries

Answer

ACH Operators from network disruptions caused by fraud

Question 3

Under Regulation E, a consumer must report an unauthorized transaction within what timeframe to receive maximum protection?

Accepted Answer

2 business days of learning of the loss or theft of an access device

Answer

60 days from the date of the account statement

Answer

30 calendar days of the transaction date

Answer

Same day the unauthorized transaction is discovered

Question 4

BSA/AML requirements that apply to ACH transactions include:

Accepted Answer

Monitoring for suspicious activity and filing SARs when warranted

Answer

Filing a CTR for every ACH transaction exceeding $10,000

Answer

Reporting all ACH entries to FinCEN on a daily basis

Answer

Obtaining NACHA approval for all high-value ACH entries

Question 5

OFAC compliance in ACH processing requires financial institutions to:

Accepted Answer

Screen transactions against the SDN list and block or reject prohibited transactions

Answer

Report all international ACH transactions to OFAC before processing

Answer

Obtain OFAC pre-approval for every IAT entry originated

Answer

File a SAR with FinCEN for every IAT entry received

Question 6

The ACH audit requirement under NACHA rules applies to:

Accepted Answer

ODFIs, RDFIs, Third-Party Senders, and Third-Party Processors participating in the ACH network

Answer

Only ODFIs and RDFIs that are direct NACHA members

Answer

NACHA member financial institutions only, excluding processors

Answer

Federal Reserve member banks exclusively