AFP AFP Financial Regulations and Compliance

Question 1

Which U.S. regulation requires financial institutions to implement Customer Identification Programs (CIP) as part of anti-money laundering efforts?

Accepted Answer

Bank Secrecy Act / USA PATRIOT Act

Answer

Dodd-Frank Act

Answer

Sarbanes-Oxley Act

Answer

Gramm-Leach-Bliley Act

Question 2

Under Dodd-Frank, which types of OTC derivatives are now required to be centrally cleared?

Accepted Answer

Standardized interest rate and credit default swaps

Answer

All commodity futures

Answer

Exchange-traded options only

Answer

Foreign currency spot transactions

Question 3

What is the primary purpose of Sarbanes-Oxley Section 302 for corporate treasury?

Accepted Answer

Requires CEO/CFO to certify the accuracy of financial reports

Answer

Mandates segregation of investment duties

Answer

Establishes capital adequacy ratios

Answer

Defines AML reporting thresholds

Question 4

Which regulation governs the reporting of foreign bank accounts held by U.S. persons, relevant to corporate treasury?

Accepted Answer

FBAR (FinCEN Form 114)

Answer

FATCA (Form 8938)

Answer

Form 10-K

Answer

Reg FD

Question 5

What does FATCA require of foreign financial institutions with respect to U.S. account holders?

Accepted Answer

Report information about U.S. account holders to the IRS

Answer

Close all U.S.-linked accounts

Answer

Convert all USD balances to local currency

Answer

File quarterly cash flow statements with the SEC

Question 6

Which internal control framework is most commonly referenced by AFP treasury professionals for assessing financial reporting controls?

Accepted Answer

COSO Internal Control – Integrated Framework

Answer

ISO 31000

Answer

COBIT

Answer

Basel III